San Leon Energy PLC Update on Oza field, Nigeria (1379T)
March 16 2023 - 3:00AM
UK Regulatory
TIDMSLE
RNS Number : 1379T
San Leon Energy PLC
16 March 2023
16 March 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 15 March 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.
As confirmed in its recent announcement on 1 March 2023, San
Leon continues to explore a potential sale of its non-core
investments in DPL although the completion remains subject to the
purchaser finalising its own funding arrangements.
Part of the text of Decklar's announcement is set out below:
-- "Decklar Resources Inc. ("Decklar") and its co-venturer
Millenium Oil & Gas Company Limited ("Millenium") have executed
an addendum to the recently signed sale and purchase agreement to
increase the total volume to be delivered by an additional 50,000
barrels of crude oil ("bbls") to the Edo Refinery and
Petrochemicals Company Limited ("ERPC") in Edo State, Nigeria. This
brings the total additional volume contracted to 200,000 bbls.
-- Trucking of crude oil has continued from the Oza Oil Field to
the ERPC refinery, and total deliveries to ERPC have passed the
20,000 bbl mark under the 30,000 bbls crude sale agreement.
-- Decklar and Millenium have also made progress obtaining
necessary permits to sell and export approximately 8,000 bbls
previously delivered to Umugini Pipeline Infrastructure Limited
("UPIL") and held in storage at the Forcados export terminal tank
farm.
Calgary, Alberta - Decklar Resources Inc. (TSX-V: DKL) (OTCQX:
DKLRF) (FSE: A1U1) (the " Company " or " Decklar " ) and its
co-venturer Millenium are pleased to announce execution of an
addendum to the recent crude oil sale and purchase agreement and to
provide updates regarding crude oil delivery operations at the Oza
Oil Field in Nigeria.
Crude Oil Sales and Purchase Agreement Increased to 200,000
bbls
Decklar and its co-venturer Millenium have signed an addendum to
the recently executed sale and purchase agreement with ERPC to
deliver an additional 150,000 bbls to the Edo Refinery in Edo
State, Nigeria. The addendum increases the total volume to be
delivered under the sale and purchase agreement to a total of
200,000 bbls. This agreement follows the 30,000 bbls agreement that
Decklar and Millenium are currently delivering on and extends the
arrangement to continue to deliver and sell production from the Oza
Oil Field after the 30,000 bbls contract has been fulfilled.
Continued Trucking and Sale of Crude Oil to Edo Refinery
Trucking of oil from the Oza Oil Field has continued to the ERPC
facility in Edo State, Nigeria, and delivery of a total of over
30,000 bbls has been completed to date, with invoices issued so far
for the 20,000 bbls delivered under the 30,000 bbls sales
agreement. Payments for delivery of crude oil continue to be
received per the terms of the 30,000 bbls sales agreement as each
5,000 bbl batch is invoiced. Additional deliveries are continuing
on an ongoing basis, and efforts are being made to obtain
additional permits to increase the truck fleet to serve the sales
demands of the ERPC contract and the recently executed agreement
with Duport Midstream Company Limited.
Sale of Crude Oil in Storage with UPIL
Decklar and Millenium are making arrangements to obtain
necessary permits to sell and export approximately 8,000 bbls
previously delivered to UPIL and held in storage at the Forcados
export terminal tank farm."
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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