San Leon Energy PLC Update on investment in Oza Field, Nigeria (4295K)
September 01 2021 - 9:11AM
UK Regulatory
TIDMSLE
RNS Number : 4295K
San Leon Energy PLC
01 September 2021
1 September 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. ("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 and Testing Update
-- The initial flow testing of the L2.6 sand resulted in a
stabilized flow rate of 2,463 barrels of oil per day ("bopd").
-- Testing of the individual sands identified on well logs will
continue for the two remaining target zones, after which the well
is expected to be put on commercial production with a dual-tubing
string completion.
Calgary, Alberta -- Decklar Resources Inc. (DKL-TSX Venture)
(the "Company" or "Decklar") is pleased to announce the following
update on 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.
The Oza-1 well has been re-entered successfully with the old
tubing and completion equipment successfully being removed, all
well maintenance performed, the deeper zones cemented off to
isolate them from the target reservoirs, a new wellhead installed,
and the site prepared and production testing equipment installed
for and re-completion of the target zones in the Oza-1 well.
During the initial flow testing of the L2.6 sand, the zone
produced at multiple choke settings ranging from 16/64 inch to
32/64 inch over the 116 hour testing period. The L2.6 sand is the
deepest target zone of the re-entry program on the Oza-1 well and
has 21 feet of gross hydrocarbon pay thickness. The testing of the
L2.6 sand yielded a stabilized flow rate of 2,463 barrels of oil
per day ( " bopd") of 22 degree API sweet crude oil on a 32/40 inch
choke setting and flowing tubing head pressure of 450 psig during
the last three hour period of the 22.5 hour flow test at this choke
setting. In all tests there was less than 0.05% basic sediment and
water ( " BS&W") and no gas production.
The foregoing test results should be considered as preliminary.
Readers are cautioned that the test results herein are not
necessarily indicative of long-term performance or of ultimate
recovery.
The perforation and testing of the two other target zones is
on-going and expected to conclude in the coming weeks. The Oza-1
well is expected to then be completed using a dual-tubing
completion string to produce from the best two zones being tested
and put on commercial production. The Oza Oil Field has significant
export and production capacity through processing facilities and
infrastructure already in place and operational, which is
anticipated to 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 Plunkett
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