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 | +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 | |
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
