Update on investment in Oza Field, Nigeria

RNS Number : 1021R

San Leon Energy PLC

02 November 2021

 

2 November 2021

San Leon Energy plc

("San Leon")

Update on investment in Oza Field, Nigeria

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement made today by Decklar Resources Inc. ("Decklar Resources") in Canada.

San Leon has entered into a conditional subscription agreement with Decklar Petroleum Limited ("Decklar Petroleum"), the local subsidiary of Decklar Resources, which entitles San Leon to purchase US$7,500,000 of 10% unsecured subordinated loan notes of Decklar Petroleum and 15% of the enlarged share capital of Decklar Petroleum. In addition, Decklar Petroleum and San Leon have entered into an option agreement which, at San Leon's sole discretion, entitles San Leon to purchase an additional US$7,500,000 of loan notes and further Decklar Petroleum shares representing an additional 15% of the enlarged share capital of Decklar Petroleum.  Further details of these conditional investment agreements can be found in the San Leon's announcement of 1 September 2020.  This transaction is still awaiting final conditions precedents to complete.

Part of the text of Decklar Resources' announcement is set out below:

"Decklar Resources Inc. Announces Completion Operations for the Oza-1 Well

Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1 (the "Company" or "Decklar") announces final completion operations for the Oza-1 well re-entry.

Completion operations have now concluded at the Oza-1 well. The final completion has been installed in the Oza-1 well, which has a single 2 7/8 inch tubing string, with a selective zone sliding sleeve configuration. This design will initially be configured to allow for production from the L2.6 sand, which as previously announced had tested at a stabilized flow rate of 2,463 barrels of oil per day ( " bopd") of 22 degree API sweet crude oil on a 32/64 inch choke setting and flowing tubing head pressure of 450 psig over the testing period with less than 0.05% basic sediment and water ( " BS&W") and no gas production.

Logistics and export activities for the Oza-1 well are being finalized, at which point, the well will commence commercial oil production.

The Company is currently evaluating the next phase of development drilling activities at the Oza Field." 

Enquiries:

San Leon Energy plc	[phone]
Oisin Fanning, Chief Executive
Allenby Capital Limited (Nominated adviser and joint broker to the Company)	[phone]
Nick Naylor Alex Brearley Vivek Bhardwaj
Panmure Gordon & Co (Joint broker to the Company)	[phone]
Nick Lovering James Sinclair-Ford
Brandon Hill Capital Limited (Joint broker to the Company)	[phone]
Oliver Stansfield Jonathan Evans
Tavistock (Financial Public Relations)	[phone]
Nick Elwes Simon Hudson
Plunkett Public Relations	[phone]
Sharon Plunkett

 

END

 

 

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