REG - San Leon Energy PLC - Update on investment in Oza Field, Nigeria

San Leon EnergyAnnouncement

02/11/2021 13:55

RNS Number : 1021R
  
San Leon Energy PLC
  
02 November 2021
  
 

 
 
2 November 2021
San Leon Energy plc
("San Leon")
 
Update on investment in Oza Field, Nigeria
 
San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement made today by Decklar Resources Inc. ("Decklar Resources") in Canada. 
 
San Leon has entered into a conditional subscription agreement with Decklar Petroleum Limited ("Decklar Petroleum"), the local subsidiary of Decklar Resources, which entitles San Leon to purchase US$7,500,000 of 10% unsecured subordinated loan notes of Decklar Petroleum and 15% of the enlarged share capital of Decklar Petroleum. In addition, Decklar Petroleum and San Leon have entered into an option agreement which, at San Leon's sole discretion, entitles San Leon to purchase an additional US$7,500,000 of loan notes and further Decklar Petroleum shares representing an additional 15% of the enlarged share capital of Decklar Petroleum.  Further details of these conditional investment agreements can be found in the San Leon's announcement of 1 September 2020.  This transaction is still awaiting final conditions precedents to complete. 
 
Part of the text of Decklar Resources' announcement is set out below:
 
"Decklar Resources Inc. Announces Completion Operations for the Oza-1 Well
 
Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1 (the "Company" or "Decklar") announces final completion operations for the Oza-1 well re-entry.
 
Completion operations have now concluded at the Oza-1 well. The final completion has been installed in the Oza-1 well, which has a single 2 7/8 inch tubing string, with a selective zone sliding sleeve configuration. This design will initially be configured to allow for production from the L2.6 sand, which as previously announced had tested at a stabilized flow rate of 2,463 barrels of oil per day ("bopd") of 22 degree API sweet crude oil on a 32/64 inch choke setting and flowing tubing head pressure of 450 psig over the testing period with less than 0.05% basic sediment and water ("BS&W") and no gas production.
 
Logistics and export activities for the Oza-1 well are being finalized, at which point, the well will commence commercial oil production.
 
The Company is currently evaluating the next phase of development drilling activities at the Oza Field." 
 




 
Enquiries:
 



San Leon Energy plc


+353 1291 6292




Oisin Fanning, Chief Executive








Allenby Capital Limited
(Nominated adviser and joint broker to the Company)


+44 20 3328 5656




Nick Naylor
Alex Brearley
Vivek Bhardwaj








Panmure Gordon & Co 
(Joint broker to the Company)


+44 20 7886 2500




Nick Lovering 
James Sinclair-Ford








Brandon Hill Capital Limited
(Joint broker to the Company)


+44 20 3463 5000




Oliver Stansfield
Jonathan Evans








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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