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

San Leon EnergyAnnouncement

30/11/2023 16:00

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RNS Number : 2740V  San Leon Energy PLC  30 November 2023

 

 

30 November 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 30 November 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.

 

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:

 

"• Decklar Resources Inc. ("Decklar") and its co-venturer Millenium Oil
& Gas Company Limited ("Millenium") announce that the final approval
required to commence exports through the Trans Niger Pipeline ("TNP") to the
Bonny Export Terminal has been received. The granting of approval for the
recertified fiscal metering unit allows access and injection of production
from the Oza Oil Field into the TNP for transport to and export from the Bonny
Export Terminal.

• Decklar and Millenium have commenced export of crude oil production from
the Oza Oil Field through the TNP for transport to the Bonny Export Terminal
and sale to Shell Western Supply and Trading Limited.

 

Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE:
A1U1) (the "Company" or "Decklar") and its co-venturer Millenium are pleased
to announce receipt of all necessary permits and approvals required to
transport oil through the TNP to the Bonny Export Terminal and the
commencement of crude oil production from the Oza Oil Field. The initial
production rates have been averaging 750 barrels of oil per day ("bopd").

 

Sale of Crude Oil from the Oza Oil Field

As previously announced, Decklar and Millenium obtained the necessary permits
required to sell and export crude oil from the Oza Oil Field and have now
received approval for the re-certification of fiscal metering equipment
required from Nigerian government agencies to allow for access and production
into the TNP.

 

Millenium, as operator of the Oza Oil Field, has signed a Crude Handling and
Terminaling Agreement ("CHTA") with the Shell Petroleum Development Company of
Nigeria Limited ("SPDC") whereby crude oil produced at the Oza Oil Field will
be delivered through the TNP to the SPDC Bonny Export Terminal. The CHTA
provides for initial available throughput capacity of 1,200 bopd. Oil
currently held in storage tanks at the Oza Oil Field will also be injected
into the TNP, and arrangements are being finalized to have the approximately
8,000 bbls previously delivered to Umugini Pipeline Infrastructure Limited
("UPIL") and held in storage at the Forcados export terminal tank farm lifted
and sold.

 

Re-Establishing Pipeline Access

The TNP flows into the SPDC-operated Bonny Export Terminal and had been shut
down for over one year due to damage, vandalism and high line losses. The TNP
was reopened in April 2023, with efforts and support from the Nigerian
government credited to a great degree for the resumption of operations."

 

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
 Fortified Securities                               +44 7493989014

 (Joint broker to the Company)
 Guy Wheatley
 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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