Oza-1 Well Re-Entry Update
June 17 2021 - 8:00AM
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 ½ inch casing that is inside the 9 ⅝ 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.
Decklar also continues to pursue and advance
evaluations and negotiations for additional proven undeveloped oil
and gas fields in Nigeria that have significant reserves and
near-term production potential, including the recently announced
Letter of Intent to acquire rights in the Asaramatoru oil
field.
Duncan Blount, CEO of Decklar, stated “This is a
significant milestone for the Company as we transition from a
developer into a producing oil company. Thanks to the
infrastructure already in place, the flow test from the Oza-1 will
go directly into the pipeline to the Bonny Export Terminal to
generate attractive cash flow. We look forward to ramping up
production as we continue to progress full-field development at the
Oza Field. The cash flow from this field will support Decklar’s
strategy of consolidating and re-establishing production at this
and other similar high-margin proven undeveloped conventional oil
fields in Nigeria.”
For further information:
Duncan T. BlountChief Executive Officer Telephone: +1 305 890
6516Email: dblount@decklarresources.com
David HalpinChief Financial Officer Telephone: +1 403 816
3029Email:davidhalpin@decklarpetroleum.com
Investor Relations: info@decklarresources.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Language
Certain statements made and information
contained herein constitute "forward-looking information" (within
the meaning of applicable Canadian securities legislation). All
statements in this news release, other than statements of
historical facts, are forward-looking statements. Such statements
and information (together, "forward looking statements") relate to
future events or the Company's future performance, business
prospects or opportunities.
All statements other than statements of
historical fact may be forward-looking statements. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "seek", "anticipate", "plan", "continue",
"estimate", "expect, "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe" and similar expressions) are not statements of historical
fact and may be "forward-looking statements". Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. The Company believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil
prices, results of exploration and development activities,
uninsured risks, regulatory changes, defects in title, availability
of materials and equipment, timeliness of government or other
regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of
third party service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
The Company provides no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not assume the obligation to revise or update these
forward-looking statements after the date of this document or to
revise them to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities
laws.
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