San Leon Energy PLC Update on Oza field, Nigeria (3304N)
January 20 2023 - 2:00AM
UK Regulatory
TIDMSLE
RNS Number : 3304N
San Leon Energy PLC
20 January 2023
20 January 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 19 January 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.
Further to the announcement made by the Company on 20 December
2022, San Leon remains in advanced negotiations in respect of the
proposed sale of the Company's non-core investments in DPL,
although the completion of this proposed sale will be subject to
the purchaser finalising its own funding arrangements.
Part of the text of Decklar's announcement is set out below:
-- " Decklar and its co-venturer Millenium Oil & Gas Company
Limited ("Millenium") have received the first payment for the sale
of crude oil from the Oza Oil Field since recommencement of
operations.
-- Decklar and Millenium have now increased production from the
Oza Oil Field to a total rate of approximately 1,300 barrels of oil
per day ("bopd") following the restart of production at
approximately 900 bopd from the Oza-1 well and new production at
approximately 400 bopd following minor repairs to the Oza-4
well.
-- Trucking of oil has continued from the Oza Field to the Edo
Refinery and Petrochemicals Company Limited ("ERPC") in Edo State,
Nigeria.
-- Decklar and Millenium have issued another invoice for
delivery of 5,000 barrels of crude oil ("bbls") to ERPC under the
recently signed 30,000 bbls crude sale agreement., and initial
payment for previous deliveries totaling 10,000 bbls has now been
received.
Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX:
DKLRF) (FSE: A1U1) (the "Company" or "Decklar") and its co-venturer
Millenium are pleased to provide updates regarding oil production
and delivery operations at the Oza Oil Field in Nigeria.
Restart of Production from the Oza-4 Well
Decklar and Millenium have recommenced production from the Oza
Oil Field at a total production rate of approximately 1,300 bopd.
The Oza-1 well is currently producing approximately 900 bopd of 22
API crude oil on a 20/64 inch choke with wellhead pressure of 400
psi and 2.5% BS&W. Following successful minor repairs, the
Oza-4 well has been opened and restarted with current production
averaging approximately 400 bopd on a 24/64 inch choke at wellhead
pressure of 1,300 psi with 0.01% BS&W.
Trucking of Crude Oil to Edo Refinery
Trucking of oil from the Oza Field is ongoing to the ERPC
facility in Edo State, Nigeria. Ten trucks are currently in
operation and are capable of delivering approximately 2,500 bbls
every four days. Additional trucks are expected to be contracted
over the next few weeks to increase delivery capacity.
Receipt of Funds for First Oil Sale
Decklar and Millenium have received payment on the first invoice
for delivered crude under the 10,000 bbls sale agreement with ERPC.
The Company has now issued an invoice for delivery of the first
5,000 bbls as part of the 30,000 bbl sale agreement with ERPC with
payment expected in approximately three weeks. With continued
production and delivery of crude oil it is expected that regular
billing and receipts of sales proceeds will occur ."
Enquiries:
San Leon Energy plc +353 1291 6292
Oisin Fanning, Chief Executive
Julian Tedder, Chief Financial Officer
Allenby Capital Limited
(Nominated adviser and joint broker to San Leon) +44 20 3328 5656
Nick Naylor
Alex Brearley
Vivek Bhardwaj
Panmure Gordon & Co
(Joint broker to San Leon) +44 20 7886 2500
James Sinclair-Ford
John Prior
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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