SacOil report the award of 100% equity interest and operator status in Block 1, an onshore petroleum prospecting license in Malawi. Following due process and intensive negotiations between SacOil and the Malawian government, the prospecting licence was awarded to SacOil on the 12 December 2012. The license was duly signed by the Honourable, John Bande, Minister of Mining in the Republic of Malawi.

Block 1 is located in the North Western part of Malawi bordering Tanzania to the North and Zambia to the west. At 12,265 square kilometres, Block 1 is the second largest petroleum exploration licence demarcated in Malawi. The licence is located on trend with the East African rift system which is a proven exploration province with prolific oil discoveries in Sudan, Chad, Kenya and Uganda. It is anticipated that the same Tertiary rift system will be present in Malawi. This award dovetails with SacOil's strategy of building a balanced upstream oil and gas portfolio through the acquisition of early stage opportunities in Africa similar to that which has already been demonstrated by the company in the DRC.

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