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

San Leon EnergyAnnouncement

16/03/2023 07:00

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RNS Number : 1379T  San Leon Energy PLC  16 March 2023

 

 

16 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 on 15 March 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.

 

As confirmed in its recent announcement on 1 March 2023, San Leon continues to
explore a potential sale of its non-core investments in DPL although the
completion 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 an addendum to the
recently signed sale and purchase agreement to increase the total volume to be
delivered by an additional 50,000 barrels of crude oil ("bbls") to the Edo
Refinery and Petrochemicals Company Limited ("ERPC") in Edo State, Nigeria.
This brings the total additional volume contracted to 200,000 bbls.

·    Trucking of crude oil has continued from the Oza Oil Field to the
ERPC refinery, and total deliveries to ERPC have passed the 20,000 bbl mark
under the 30,000 bbls crude sale agreement.

·    Decklar and Millenium have also made progress obtaining necessary
permits to sell and export approximately 8,000 bbls previously delivered to
Umugini Pipeline Infrastructure Limited ("UPIL") and held in storage at the
Forcados export terminal tank farm.

 

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 an addendum to the recent crude oil sale and purchase
agreement and to provide updates regarding crude oil delivery operations at
the Oza Oil Field in Nigeria.

 

Crude Oil Sales and Purchase Agreement Increased to 200,000 bbls

 

Decklar and its co-venturer Millenium have signed an addendum to the recently
executed sale and purchase agreement with ERPC to deliver an additional
150,000 bbls to the Edo Refinery in Edo State, Nigeria. The addendum increases
the total volume to be delivered under the sale and purchase agreement to a
total of 200,000 bbls. This agreement follows the 30,000 bbls agreement that
Decklar and Millenium are currently 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.

 

Continued Trucking and Sale of Crude Oil to Edo Refinery

 

Trucking of oil from the Oza Oil Field has continued to the ERPC facility in
Edo State, Nigeria, and delivery of a total of over 30,000 bbls has been
completed to date, with invoices issued so far for the 20,000 bbls delivered
under the 30,000 bbls sales agreement. Payments for delivery of crude oil
continue to be received per the terms of the 30,000 bbls sales agreement as
each 5,000 bbl batch is invoiced. Additional deliveries are continuing on an
ongoing basis, and efforts are being made to obtain additional permits to
increase the truck fleet to serve the sales demands of the ERPC contract and
the recently executed agreement with Duport Midstream Company Limited.

 

Sale of Crude Oil in Storage with UPIL

 

Decklar and Millenium are making arrangements to obtain necessary permits to
sell and export approximately 8,000 bbls previously delivered to UPIL and held
in storage at the Forcados export terminal tank farm."

 

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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