REG - San Leon Energy PLC - Update on Oza field, Nigeria

San Leon EnergyAnnouncement

20/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230120:nRST3304Na&default-theme=true

RNS Number : 3304N  San Leon Energy PLC  20 January 2023

 

 

20 January 2023

San Leon Energy plc

("San Leon")

 

Update on Oza field, Nigeria

 

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, notes the announcement made on 19 January 2023 by
Decklar Resources Inc. ("Decklar") in Canada.  San Leon has a 11%
shareholding in Decklar Petroleum Limited ("DPL"), the local subsidiary of
Decklar operating in Nigeria, and has also made a US$5.5 million loan to DPL,
via 10% per annum unsecured subordinated loan notes.

 

Further to the announcement made by the Company on 20 December 2022, San Leon
remains in advanced negotiations in respect of the proposed sale of the
Company's non-core investments in DPL, although the completion of this
proposed sale will be subject to the purchaser finalising its own funding
arrangements.

 

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

 

·      "Decklar and its co-venturer Millenium Oil & Gas Company
Limited ("Millenium") have received the first payment for the sale of crude
oil from the Oza Oil Field since recommencement of operations.

·      Decklar and Millenium have now increased production from the Oza
Oil Field to a total rate of approximately 1,300 barrels of oil per day
("bopd") following the restart of production at approximately 900 bopd from
the Oza-1 well and new production at approximately 400 bopd following minor
repairs to the Oza-4 well.

·      Trucking of oil has continued from the Oza Field to the Edo
Refinery and Petrochemicals Company Limited ("ERPC") in Edo State, Nigeria.

·      Decklar and Millenium have issued another invoice for delivery of
5,000 barrels of crude oil ("bbls") to ERPC under the recently signed 30,000
bbls crude sale agreement., and initial payment for previous deliveries
totaling 10,000 bbls has now been received.

 

Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE:
A1U1) (the "Company" or "Decklar") and its co-venturer Millenium are pleased
to provide updates regarding oil production and delivery operations at the Oza
Oil Field in Nigeria.

 

Restart of Production from the Oza-4 Well

Decklar and Millenium have recommenced production from the Oza Oil Field at a
total production rate of approximately 1,300 bopd. The Oza-1 well is currently
producing approximately 900 bopd of 22 API crude oil on a 20/64 inch choke
with wellhead pressure of 400 psi and 2.5% BS&W. Following successful
minor repairs, the Oza-4 well has been opened and restarted with current
production averaging approximately 400 bopd on a 24/64 inch choke at wellhead
pressure of 1,300 psi with 0.01% BS&W.

 

 

Trucking of Crude Oil to Edo Refinery

Trucking of oil from the Oza Field is ongoing to the ERPC facility in Edo
State, Nigeria. Ten trucks are currently in operation and are capable of
delivering approximately 2,500 bbls every four days. Additional trucks are
expected to be contracted over the next few weeks to increase delivery
capacity.

 

Receipt of Funds for First Oil Sale

Decklar and Millenium have received payment on the first invoice for delivered
crude under the 10,000 bbls sale agreement with ERPC. The Company has now
issued an invoice for delivery of the first 5,000 bbls as part of the 30,000
bbl sale agreement with ERPC with payment expected in approximately three
weeks. With continued production and delivery of crude oil it is expected that
regular billing and receipts of sales proceeds will occur."

 

Enquiries:

 

 San Leon Energy plc                                +353 1291 6292
 Oisin Fanning, Chief Executive

 Julian Tedder, Chief Financial Officer
 Allenby Capital Limited                            +44 20 3328 5656

 (Nominated adviser and joint broker to San Leon)
 Nick Naylor

 Alex Brearley

 Vivek Bhardwaj
 Panmure Gordon & Co                                +44 20 7886 2500

 (Joint broker to San Leon)
 James Sinclair-Ford

 John Prior
 Tavistock                                          +44 20 7920 3150

 (Financial Public Relations)
 Nick Elwes

 Simon Hudson
 Plunkett Public Relations                          +353 1 230 3781
 Sharon Plunkett

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPUAUGUPWGBB