SacOil Holdings refunded $10m after terminating joint venture partnership

Independent African oil and gas company SacOil has received a $10m refund from its cancelled investment in oil prospecting licence 233, sending shares higher on Tuesday morning.

The group had formed a joint venture with Nigdel United Oil, but terminated the agreement in May in order to balance its portfolio of assets.

Half of the $10m receipt will be treated as a part repayment of Energy Equity Resources Norway's outstanding loan related to the licence.

SacOil chief Dr Thabo Kgogo said: "This represents another positive step in line with our strategy to ensure that SacOil has a strong cash position to fund its future growth ambitions by increasing production and focusing on cash generative assets."

Shares rose 11.11% to 1.25p at the opening bell.