San Leon Provides Update on Development of the Oza Field, Nigeria

Source: www.gulfoilandgas.com 5/10/2022, Location: Africa

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement made yesterday by Decklar Resources Inc. ("Decklar") in Canada. San Leon has a 11.5% 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.

Part of the text of Decklar's announcement is set out below:
· Decklar and its co-venturer have commenced loading crude oil into trucks at the Oza Oil Field from storage tanks for delivery to the Umugini Pipeline Infrastructure Limited ("UPIL") crude handling facilities for further transfer to the Shell Petroleum Development Company of Nigeria Limited ("SPDC") Joint Venture Forcados Oil Export Terminal via the Umugini Pipeline.
· When loading of crude oil from storage has reached 5,000 barrels, production from the Oza-1 well will start in order to enable ongoing shipments by truck to UPIL.

Decklar Resources Inc. is pleased to announce the commencement of the shipment of crude oil via trucks from the Oza Oil Field to the UPIL crude handling facilities for further transfer to the SPDC Joint Venture Forcados Oil Export Terminal via the Umugini Pipeline.

Oza Field Oil Export Operations
Decklar and its co-venturer Millenium Oil & Gas Company Limited ("Millenium") have commenced loading crude oil into trucks at the Oza Oil Field from storage tanks for delivery to the UPIL crude handling facilities for further transfer to the SPDC Joint Venture Forcados Oil Export Terminal via the Umugini Pipeline.

The trucks are currently being loaded from crude oil storage tanks at the Oza site that hold approximately 22,000 barrels of oil. When loading of crude oil from storage to the trucks has reached approximately 5,000 barrels, production from the Oza-1 well into the storage tank will be re-started in order to enable ongoing shipments by truck to UPIL.

As previously announced, 2022 development plans for the Oza Field include:

- finalizing arrangements with local communities and contractors to start construction of the access road and associated infrastructure for a new oil well drilling pad;
- drilling the first new development well;
- re-entry, re-completion, and flow testing of the other two existing wells (Oza-2 and Oza-4), including tie-in to existing production facilities;
- installation of a Central Production Facility and infrastructure tie-ins for new well locations to replace the current Early Production Facility; and
- drilling of up to two additional development wells.

Development plans for the Oza Field beyond 2022 also include up to five additional development wells.


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