As previously announced to shareholders on 1 April 2015, SacOil terminated its participation with Transnational Corporation of Nigeria Plc, the operator of Oil Prospecting Licence 281.

In a letter dated 10 December 2014 to SacOil, Transcorp acknowledged SacOil's termination of the Farm-out and Participation Agreement and confirmed the effective date of such termination as 3 December 2014.

Transcorp further acknowledged its liability in writing to SacOil and agreed to refund the farm-in fees and interest thereon in line with the provisions of the FoPA, requesting SacOil to provide Transcorp with written details of the bank account into which payment would be made. The only contention from Transcorp at that time was the interest rate applicable to the refund although such interest rate was clearly stipulated in the FoPA.

Tags: SacOil Holdings