SacOil has announced a $14 million deal to acquire Mena International Petroleum Company Ltd (MIP), an Exploration and Production (E&P) company registered in Cyprus, including its 100 percent interest in Lagia oil field.

The transaction, which will see the African independent upstream oil and gas company – listed on the Johannesburg Stock Exchange (JSE) and London Stock Exchange’s AIM – issue its shares to shareholders of MIP and settle its liabilities valued at $4.1 million.

The Lagia oil field, which covers an area of approximately 32 square kilometres on the Sinai Peninsula in Egypt represents the acquisition by SacOil of a de-risked onshore development.

According to the company’s Vice-President Commercial, Willem de Meyer, the on-shore asset is a heavy oil field with five wells completed and existing infrastructure, including storage facilities for up to 3000 barrels.

“This is certainly an asset with significant upside potential and we will most likely drill a number of production wells over the next five years to optimise field recovery at Lagia,” he said.

SacOil CEO, Dr Thabo Kgogo described the new deal as another significant milestone in the history of the company, which he said was in line with SacOil’s short to medium term strategy of balancing the oil and gas firm’s existing exploration and appraisal portfolio with lower risk production and development assets.

“The two-pronged approach of this strategy includes the monetization of the existing assets and expansion of the portfolio to deliver production and cash flows,” a statement by the company said.

The new oil field in the Sinai Peninsula extends SacOil’s operating countries to five. The company also operates in Nigeria, Democratic Republic of Congo, Botswana and Malawi. The oil giant may add Mozambique to its operations soon as it hinted earlier in the year it plans to expand and balance its portfolio in Africa, with interest shown in Mozambique’s thriving gas sector, among others.