San Leon Energy PLC Update on investment in Oza Field, Nigeria (2892C)
June 17 2021 - 9:09AM
UK Regulatory
TIDMSLE
RNS Number : 2892C
San Leon Energy PLC
17 June 2021
17 June 2021
San Leon Energy plc
("San Leon" or the "Company")
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. in Canada, part of the text of
which is set out below:
"Oza-1 Well Re-Entry Update
-- The drilling rig and related equipment have been fully
mobilized to the Oza-1 well site, and the rig is in the final set
up and commissioning phase in preparation for the Oza-1 well
re-entry activities.
-- Initial operations will include functional testing of the
rig, pulling existing tubing out of the well, and running a cement
bond log to confirm integrity of the cement behind casing.
-- These operations will be followed by pulling of 5 1/2 inch
casing that is inside 9 5/8 inch casing, running cased hole
reservoir well logs, and cleaning of the well.
-- Perforation operations will then begin with the lowest zone
of interest (L2.6) and then running a testing tubing string with
straddle packers to test the isolated L2.6 zone.
-- It is anticipated that initial oil production testing will
then commence, with all crude oil test volumes produced being
immediately exported and sold through the existing production
facilities and pipelines to the Bonny Export Terminal.
-- Production testing and oil exports are anticipated to commence by mid-July 2021.
Toronto, Canada -- Decklar Resources Inc. (DKL-TSX Venture) (the
"Company" or "Decklar") is pleased to announce an update to
operations at the Oza-1 well re-entry at the Oza Oil Field in
Nigeria, being performed by the Company's wholly-owned
Nigeria-based subsidiary, Decklar Petroleum Limited.
Rig On-site at Oza-1 Preparing to Commence Operations
Decklar has made significant progress in preparation for the
Oza-1 well re-entry with the arrival of the drilling rig, camp, and
all associated equipment at the site. The drilling rig has been
installed and is in the final rigging up stage, and initial
operations on the Oza-1 well re-entry are anticipated to begin
shortly, starting with functional testing of the rig and then
initial work activities of pulling the existing tubing and running
a cement bond log to confirm the integrity of the cement behind the
casing. This will be followed by pulling the 5 1/2 inch casing that
is inside the 9 5/8 inch casing and running cased hole reservoir
logs. Once the logging is complete and has been analyzed, the well
will be cleaned out and perforation and production testing
operations will be performed on the three known oil-bearing zones
(L2.2, L2.4 and L2.6) beginning with the lowest zone (the L2.6
zone). Each zone will be production flow tested independently, and
all test volumes produced will be exported and sold through the
existing production facilities and pipelines. Once testing of all
three zones is completed, it is anticipated that a final
dual-tubing string completion will be installed, and the L2.2 and
L2.6 zones placed into production based upon successful
testing.
The drilling rig is then expected to be skidded on the same
drill pad as Oza-1 to a new drilling slot and a horizontal
development well will be drilled in the L2.4 zone and placed on
production upon successful testing. The Oza-1 well and new
horizontal development well are anticipated to generate significant
production levels and cash flow in a short time frame due to the
existing infrastructure in place. The Oza Oil Field development is
planned to then continue with one or two more re-entries on other
existing wells and additional development drilling program with a
potential of eight to ten wells being drilled to achieve full field
development. Additional early production and central processing
facilities will be added as required to accommodate additional
production levels from field development activities.
The Company anticipates that operations for the re-entry of the
Oza-1 well are on track for initial production testing to commence
by approximately mid-July. The Oza Oil Field has significant export
and production capacity through processing facilities and
infrastructure already in place and operational, which will allow
for the immediate export and sale of crude oil from the Oza-1
well."
Enquiries:
San Leon Energy plc +353 1291 6292
Oisin Fanning, Chief Executive
Allenby Capital Limited
(Nominated adviser and joint broker to the Company) +44 20 3328 5656
Nick Naylor
Alex Brearley
George Payne
Panmure Gordon & Co
(Joint broker to the Company) +44 20 7886 2500
Nick Lovering
Brandon Hill Capital Limited
(Joint broker to the Company) +44 20 3463 5000
Oliver Stansfield
Jonathan Evans
Tavistock
(Financial Public Relations) +44 20 7920 3150
Nick Elwes
Simon Hudson
Plunkett Public Relations +353 1 230 3781
Sharon Plunkett
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