REG - San Leon Energy PLC - Oza Field Update

San Leon EnergyAnnouncement

25/08/2023 14:30

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RNS Number : 5124K  San Leon Energy PLC  25 August 2023

25 August 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 25 August 2023 by
Decklar Resources Inc. ("Decklar") in Canada, regarding crude oil delivery
operations at the Oza Oil Field in Nigeria.  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 stated in its announcement on 1 March 2023, San Leon continues to explore a
potential sale of its non-core investments in DPL, although any completion
remains subject to the proposed purchaser finalising its own funding
arrangements. A further announcement will be made in relation to this at the
appropriate time.

 

Part of the text of Decklar's announcement is set out below:

 

"Progress Re-Establishing Pipeline Access

The Trans-Niger Pipeline ("TNP"), which flows into the Shell Petroleum
Development Company of Nigeria ("SPDC") operated Bonny export terminal, was
reopened in April 2023 and remains operational. Connector lines including the
pipeline serving the Oza Oil Field, are expected to be operational in the near
future. Based upon public announcements, the main line of the TNP has been
operating since April 2023, and recorded minimal losses due to theft and
bunkering through May 2023. Updates provided by SPDC have indicated that the
main line has continued operations and it is anticipated that feeder pipelines
will soon be operational. The TNP had been shut down for over one year due to
vandalism and high line losses, and efforts and support from the Nigerian
government are credited to a great degree for the resumption of operations.
Decklar is currently re-certifying fiscal metering equipment and has applied
for all necessary permits to allow for access and production into the TNP.

 

Trucking and Sale of Crude Oil to ERPC's Edo Refinery

Trucking of crude oil from the Oza Oil Field to the ERPC facility in Edo
State, Nigeria has reached a cumulative volume of over 55,000 bbls, with
10,000 bbls delivered in 2022 under the initial sale and purchase agreement
and over 45,000 bbls delivered so far in 2023. Deliveries are continuing under
the 200,000 bbls contract. The terms of the 200,000 bbls agreement include an
invoicing and payment cycle that is triggered as each 5,000 bbls batch is
delivered and offloaded at the Edo refinery.

 

Delivery of Crude Oil to DMCL's Refinery

Delivery of crude oil has continued from the Oza Oil Field to DMCL and just
under 13,000 bbls have been delivered to date. DMCL has agreed to purchase up
to 100,000 bbls over the next 12 months.

 

The Company has experienced some delays obtaining permits to truck crude to
the ERPC and DMCL refineries, but anticipates that with new systems recently
implemented by the government regulatory agencies future permits will be
obtained and issued in a more timely and efficient manner."

 

Enquiries:

 

 San Leon Energy plc                                +353 1291 6292
 Oisin Fanning, Chief Executive

 Julian Tedder, Chief Financial Officer
 Allenby Capital Limited                            +44 20 3328 5656

 (Nominated adviser and joint broker to San Leon)
 Nick Naylor

 Alex Brearley

 Vivek Bhardwaj
 Panmure Gordon & Co                                +44 20 7886 2500

 (Joint broker to San Leon)
 James Sinclair-Ford

 John Prior
 Tavistock                                          +44 20 7920 3150

 (Financial Public Relations)
 Nick Elwes

 Simon Hudson
 Plunkett Public Relations                          +353 1 230 3781
 Sharon Plunkett

 

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