San Leon Energy PLC Update on investment in Oza Field, Nigeria (3722I)
August 12 2021 - 2:00AM
UK Regulatory
TIDMSLE
RNS Number : 3722I
San Leon Energy PLC
12 August 2021
12 August 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 yesterday 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 Company'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:
"Oza-1 Well Re-Entry Update
-- Re-entry and testing operations at the Oza-1 well continue to
move forward steadily, leading the way to advancing Decklar's
overall re-entry and development plans for the Oza Oil Field.
-- Pulling of existing tubing and 5 1/2 inch casing from the
Oza-1 wellbore has been successfully completed, and the 9 5/8 inch
casing was cleaned out.
-- A cement bond log has been completed to confirm integrity of
the cement behind casing, and cased hole reservoir logs have been
completed and confirm the characteristics of the individual zones
to be tested.
-- Surface testing facilities are currently being installed, and
it is anticipated that testing activities on the L2.6 zone are
expected to commence early next week with the initial perforation
and flow operations.
-- 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.
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.
Progress at Oza-1 in Final Preparation for Well Testing
Operations
Re-entry operations at the Oza-1 well site continue to progress
with completion of critical initial work activities including
pulling the existing tubing and the 5 1/2 inch casing that was
inside the 9 5/8 inch casing. The 9 5/8 inch casing has been
scrapped and circulated clean and over to brine completion fluid
and a cement bond log has been run to confirm the integrity of the
wellbore and cement behind the casing. Cased hole reservoir logs
have been completed and analyzed and confirm the expected
characteristics of the zones targeted for testing. Surface testing
facilities and equipment are currently being installed, and it is
anticipated that testing of the L2.6 zone will commence early next
week. Perforation operations will begin with a testing tubing
string run with straddle packers to enable testing of the three
isolated individual zones that will be tested. Production testing
operations are planned for the three known oil-bearing zones (L2.2,
L2.4 and L2.6), and each targeted zone will be production flow
tested independently. 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
two of the three zones tested will be placed into production based
upon successful testing. All necessary approvals and permits are in
place for the well re-entry, testing and completion.
As previously announced, once the Oza-1 re-entry is complete,
the drilling rig is then expected to be skidded on the same drill
pad as the Oza-1 well to a new drilling slot and a horizontal
development well will be drilled in one of the three zones tested
in the Oza-1 well. It is anticipated that this well will then be
placed on production upon successful testing and completion. The
Oza-1 well and new horizontal development well are expected to
generate significant production levels and generate cash flow in a
short time frame utilizing 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 an additional
development drilling program with a potential for eight to ten
wells to be drilled to achieve full field development. Additional
early production and central processing facilities will be added as
required to accommodate increased production levels from field
development activities.
The Company anticipates that operations are on track for initial
production testing to commence immediately following perforating
and running the testing string. 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
Vivek Bhardwaj
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 Plunket
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 or visit 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.
END
MSCUASKRAVUWAAR
(END) Dow Jones Newswires
August 12, 2021 02:00 ET (06:00 GMT)
San Leon Energy (AQSE:SLE.GB)
Historical Stock Chart
From Aug 2024 to Sep 2024
San Leon Energy (AQSE:SLE.GB)
Historical Stock Chart
From Sep 2023 to Sep 2024