ENCHA’S SacOil agrees first Nigerian short term Oil and Gas production deal and cautionary announcement

The board of SacOil is pleased to announce that the joint venture between SacOil and Equity Energy Resources Limited ("EER") (collectively the "Joint Venture") has concluded its first near production deal. The highlights being:

* SacOil acquires a 20% direct interest in Nigerian oil and gas field OPL  233;  

* Production is expected to commence mid 2013 at a potential rate of 10,000 bbls oil per day;

* The Joint Venture will receive an inflated economic interest allowing the recovery of exploration costs until 100 mmbbls of cumulative crude oil production.

Introduction

SacOil is pleased to announce that it has signed a farm-in agreement with Nigdel United Oil Company Limited ("NIGDEL") to acquire a 20% working interest in the OPL233 licence located immediately off the coast of the central delta region of Nigeria and adjacent to the giant Apoi field (>600mmbbls).

SacOil’s Nigerian partner, EER 233 Nigeria Limited, a wholly owned Nigerian subsidiary of EER, has farmed into an additional 20% of the OPL233 licence, with NIGDEL retaining the remaining 60%.