San Leon Energy PLC Update on investment in Oza Field, Nigeria (8593P)

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RNS Number : 8593P

San Leon Energy PLC

21 October 2021

21 October 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 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 the commencement of completion operations for the Oza-1 well re-entry.

As previously announced, the Oza-1 well re-entry has been successfully flow-tested in the three target zones (L2.2, L2.4, and L2.6). The final well completion design and procurement has been concluded, with all completion equipment now having arrived on location at the Oza-1 well. Completion operations on the well have commenced, which include running 2 7/8" tubing, production packers, sliding sleeves and gas lift equipment, with all activities anticipated to conclude within 7 to 10 days. The well will be initially configured for production from the L2.6 zone, which tested at rates up to 2,463 bopd as previously announced.

All early production facilities have been installed and function tested including a 5,000 bopd three phase separator, crude oil storage tanks and export pumps."

Enquiries:

 
 San Leon Energy plc                                     [phone] 
 Oisin Fanning, Chief Executive 
 Allenby Capital Limited 
  (Nominated adviser and joint broker to the Company)    [phone] 
 Nick Naylor 
  Alex Brearley 
  Vivek Bhardwaj 
 Panmure Gordon & Co 
  (Joint broker to the Company)                          [phone] 
 Nick Lovering 
  James Sinclair-Ford 
 Brandon Hill Capital Limited 
  (Joint broker to the Company)                          [phone] 
 Oliver Stansfield 
  Jonathan Evans 
 Tavistock 
  (Financial Public Relations)                           [phone] 
 Nick Elwes 
  Simon Hudson 
 Plunkett Public Relations                               [phone] 
 Sharon Plunkett 
 

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October 21, 2021 10:24 ET (14:24 GMT)