REG - San Leon Energy PLC - Update on development of the Oza field, Nigeria

San Leon EnergyAnnouncement

10/05/2022 07:00

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RNS Number : 8576K  San Leon Energy PLC  10 May 2022

 

 

 

10 May 2022

San Leon Energy plc

("San Leon")

 

Update on development of the Oza field, Nigeria

 

San Leon, the independent oil and gas production, development and exploration
company focused on Nigeria, notes the announcement made yesterday by Decklar
Resources Inc. ("Decklar") in Canada.  San Leon has a 11.5% 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.

 

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

 

·    Decklar and its co-venturer have commenced loading crude oil into
trucks at the Oza Oil Field from storage tanks for delivery to the Umugini
Pipeline Infrastructure Limited ("UPIL") crude handling facilities for further
transfer to the Shell Petroleum Development Company of Nigeria Limited
("SPDC") Joint Venture Forcados Oil Export Terminal via the Umugini Pipeline.

·    When loading of crude oil from storage has reached 5,000 barrels,
production from the Oza-1 well will start in order to enable ongoing shipments
by truck to UPIL.

 

Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DLKRF) (FSE:
A1U1) (the "Company" or "Decklar") is pleased to announce the commencement of
the shipment of crude oil via trucks from the Oza Oil Field to the UPIL crude
handling facilities for further transfer to the SPDC Joint Venture Forcados
Oil Export Terminal via the Umugini Pipeline.

 

Oza Field Oil Export Operations

 

Decklar and its co-venturer Millenium Oil & Gas Company Limited
("Millenium") have commenced loading crude oil into trucks at the Oza Oil
Field from storage tanks for delivery to the UPIL crude handling facilities
for further transfer to the SPDC Joint Venture Forcados Oil Export Terminal
via the Umugini Pipeline.

 

The trucks are currently being loaded from crude oil storage tanks at the Oza
site that hold approximately 22,000 barrels of oil. When loading of crude oil
from storage to the trucks has reached approximately 5,000 barrels, production
from the Oza-1 well into the storage tank will be re-started in order to
enable ongoing shipments by truck to UPIL.

 

As previously announced, 2022 development plans for the Oza Field include:

-   finalizing arrangements with local communities and contractors to start
construction of the access road and associated infrastructure for a new oil
well drilling pad;

-     drilling the first new development well;

-     re-entry, re-completion, and flow testing of the other two existing
wells (Oza-2 and Oza-4), including tie-in to existing production facilities;

-     installation of a Central Production Facility and infrastructure
tie-ins for new well locations to replace the current Early Production
Facility; and

-     drilling of up to two additional development wells.

 

Development plans for the Oza Field beyond 2022 also include up to five
additional development wells.

 

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)
 Nick Lovering

 James Sinclair-Ford
 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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