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

San Leon EnergyAnnouncement

01/03/2023 16:15

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RNS Number : 5694R  San Leon Energy PLC  01 March 2023

 

 

1 March 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 today 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 San Leon on 20 December 2022, San Leon
remains committed to the proposed sale of San Leon's non-core investments in
DPL, although the completion of this proposed sale still remains  subject to
the purchaser finalising its own funding arrangements.

 

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

 

·  "Decklar Resources Inc. ("Decklar") and its co-venturer Millenium Oil
& Gas Company Limited ("Millenium") have executed a sale and purchase
agreement to deliver an additional 150,000 barrels of crude oil ("bbls") with
the Edo Refinery and Petrochemicals Company Limited ("ERPC") in Edo State,
Nigeria.

·    Decklar and Millenium have also entered into a new sale and purchase
agreement with Duport Midstream Company Limited ("DMCL") to deliver an initial
5,000 bbls to the Duport refinery in Edo State, Nigeria, followed by a minimum
of 2,500 bbls per month thereafter.

·    Trucking of crude oil has continued from the Oza Field to the ERPC
refinery, and another delivery of 5,000 bbls to ERPC has been completed, for a
total of approximately 17,000 bbls delivered under the 30,000 bbls crude sale
agreement.

 

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

 

Crude Oil Sales and Purchase Agreement for additional 150,000 bbls

 

Decklar and its co-venturer Millenium have signed a new sale and purchase
agreement with ERPC to deliver an additional 150,000 bbls to the Edo Refinery
in Edo State, Nigeria. This agreement follows the 30,000 bbls agreement that
Decklar and Millenium have been delivering on and extends the arrangement to
continue to deliver and sell production from the Oza Oil Field after the
30,000 bbls contract has been fulfilled.

 

New Crude Oil Sale and Purchaser

Decklar and Millenium have entered into a new sale and purchase agreement with
DMCL to deliver an initial 5,000 bbls to the Duport refinery in Edo State,
Nigeria, followed by a minimum 2,500 bbls per month thereafter. This agreement
expands the customer base for the sale of crude oil from the Oza Oil Field and
gives Decklar and Millenium an alternate delivery location for additional
volume.

 

Continued Trucking and Sale of Crude Oil to Edo Refinery

 

Trucking of oil from the Oza Field has continued to the ERPC facility in Edo
State, Nigeria, and delivery of an additional batch of 5,000 bbls has been
completed. Total deliveries of approximately 17,000 bbls have been completed
to date, with invoices issued for 15,000 bbls. Payment for the first 5,000
bbls invoice has been received, and payment for the subsequent invoices is
expected in the next week under the terms of 30,000 bbls sales agreement.
Additional deliveries are anticipated to continue on an ongoing basis. The
current total available fleet of 20 contracted trucks is expected to
consistently deliver approximately 5,000 bbls per week.

 

With the execution of the additional 150,000 bbls sale and purchase agreement
with ERPC and the execution of the new DMCL agreement, Decklar and Millenium
plan to secure additional trucks and permits to service the increased sales
volumes and allow for the Oza Oil Field to be produced at full capacity from
the Oza-1 and Oza-4 wells."

 

 

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

 

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