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

San Leon EnergyAnnouncement

09/05/2023 07:15

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RNS Number : 6677Y  San Leon Energy PLC  09 May 2023

 

 

9 May 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 8 May 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.

 

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, further details of which were most recently
announced by San Leon on 24 March 2023.

 

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") are pleased to announce that trucking
of crude oil from the Oza Oil Field to the Edo Refinery and Petrochemicals
Company Limited ("ERPC") has continued and total deliveries have now exceeded
a total of 30,000 barrels of crude oil ("bbls") in 2023 and thus completed
deliveries to satisfy the 30,000 bbls crude sale agreement.

•     Trucking of crude oil has also continued to the Duport Midstream
Company Limited ("DMCL") refinery in Edo State, with over 7,500 bbls delivered
to date.

 

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.

 

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 41,000 bbls, with
10,000 bbls delivered in 2022 under the initial sale and purchase agreement
and over 31,000 bbls delivered so far in 2023. Deliveries under the 30,000
bbls contract have now been completed and invoiced, and deliveries will
continue under the new 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

 

In late March, delivery of crude oil commenced from the Oza Oil Field to DMCL
and over 7,500 bbls have been delivered to date. Under the sale and purchase
agreement with DMCL, Decklar and Millenium initially delivered 5,000 bbls to
the Duport refinery in March and early April, followed by an additional 2,500
bbls in the last half of April. Deliveries of an estimated 5,000 bbls per
month will continue going forward, and DMCL has agreed to purchase up to
100,000 bbls over the next 12 months. The agreement with DMCL has added a new
customer for the sale of crude oil from the Oza Oil Field and gives Decklar
and Millenium an expanded base to deliver and sell additional crude oil
volume."

 

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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