San Leon has announced that the parties have agreed to extend the completion date of Oza oilfield to first quarter of 2021. This is Further to its previous announcements regarding its proposed investment in Decklar Petroleum Limited and the Oza Field in Nigeria,
The company in its previous announcement has blamed the prevailing worldwide restrictions as occasioned by the Covid-19 pandemic have slowed the logistical process in concluding the conditions precedent in the Subscription Agreement.
Nevertheless progress continues to be made and the trading subsidiary of a major oil company, which along with a local Nigerian bank, is to provide a five year term debt to Millenium Oil and Gas Company Limited, Decklar’s local partner, has provided a further written confirmation of its support of the transaction. Given the proximity of the Christmas holiday period, the parties have decided to review the status of the outstanding conditions in the new year and assess at that time what remains outstanding.
San Leon Energy is the independent oil and gas production, development and exploration company with focus on Nigeria. The company has conditionally agreed to invest US$7.5 million by way of a loan to Decklar Petroleum, the local subsidiary of Asian Mineral Resources, listed on the Canadian TSX Venture Exchange. Decklar is the holder of a Risk Service Agreement (‘RSA’) with Millenium Oil and Gas Company on the Oza field in Nigeria. Until the loan and its interest are repaid, 100% of the Available Funds (as defined below) that can be distributed from Decklar’s RSA proceeds will be paid to San Leon in satisfaction of those payments. San Leon will also subscribe for a 15% equity interest in Decklar.
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