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

San Leon EnergyAnnouncement

16/02/2023 16:00

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RNS Number : 1991Q  San Leon Energy PLC  16 February 2023

 

 

16 February 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 16 February 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 San Leon on 20 December 2022, San Leon
remains committed to the proposed sale of San Leon's
non-core investments in DPL, although the completion of this proposed sale
still remains  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 another payment for the sale of crude oil
from the Oza Oil Field under the contract with the Edo Refinery and
Petrochemicals Company Limited ("ERPC") in Edo State, Nigeria.

·      Trucking of crude oil has continued from the Oza Field to the
ERPC, and an additional delivery of 5,000 barrels of crude oil ("bbls") to
ERPC was completed last week, for a total of 10,000 bbls delivered under the
30,000 bbls crude sale agreement

·      Decklar and Millenium have obtained permits and are contracting
an additional ten trucks in order to increase delivery capacity.

·      Decklar and Millenium are at an advanced stage of executing a new
150,000 bbls crude oil sale and purchase agreement with ERPC.

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 crude oil delivery operations at the Oza Oil
Field in Nigeria.

Receipt of Funds for Oil Sales

Decklar and Millenium have received payment on the invoice for delivery of the
first 5,000 bbls and invoiced for the second 5,000 bbls as part of the 30,000
bbl sale agreement with ERPC. Ongoing production and delivery of crude oil it
is expected to continue to result in regular billing and receipts for crude
oil sales as each 5,000 bbl batch is delivered.

Continued Trucking of Crude Oil to Edo Refinery

Trucking of oil from the Oza Field has continued steadily to the ERPC facility
in Edo State, Nigeria. An additional volume of approximately 3,000 bbls has
been delivered since the completion of the first 10,000 bbls previously
delivered and invoiced under the current 30,000 bbls agreement. Permits for
ten additional trucks have been obtained, resulting in a total available fleet
of 20 trucks. Once the additional trucks are contracted and in operation
consistent deliveries totaling approximately 5,000 bbls per week are expected.

Anticipated Agreement with ERPC for Additional 150,000 bbls

Decklar and Millenium are at an advanced stage of executing a new 150,000 bbls
crude oil sale and purchase agreement with ERPC, which is expected to include
terms for invoicing and payment after the delivery of each cargo of 10,000
bbls of crude oil."

 

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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