San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement made on 16 February 2023 by Decklar Resources in Canada. San Leon has a 11% shareholding in Decklar Petroleum (“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. 

Further to the announcement made by San Leon on 20 December 2022, San Leon remains committed to the proposed sale of San Leon’s non-core investments in DPL, although the completion of this proposed sale still remains subject to the purchaser finalising its own funding arrangements.

Part of the text of Decklar’s announcement is set out below:

• Decklar and its co-venturer Millenium Oil & Gas Company Limited (“Millenium”) have received another payment for the sale of crude oil from the Oza Oil Field under the contract with the Edo Refinery and Petrochemicals Company Limited (“ERPC”) in Edo State, Nigeria.
• Trucking of crude oil has continued from the Oza Field to the ERPC, and an additional delivery of 5,000 barrels of crude oil (“bbls”) to ERPC was completed last week, for a total of 10,000 bbls delivered under the 30,000 bbls crude sale agreement
• Decklar and Millenium have obtained permits and are contracting an additional ten trucks in order to increase delivery capacity.
• Decklar and Millenium are at an advanced stage of executing a new 150,000 bbls crude oil sale and purchase agreement with ERPC.

Decklar Resources and its co-venturer Millenium provide updates regarding crude oil delivery operations at the Oza Oil Field in Nigeria.

Receipt of Funds for Oil Sales

Decklar and Millenium have received payment on the invoice for delivery of the first 5,000 bbls and invoiced for the second 5,000 bbls as part of the 30,000 bbl sale agreement with ERPC. Ongoing production and delivery of crude oil it is expected to continue to result in regular billing and receipts for crude oil sales as each 5,000 bbl batch is delivered.

Continued Trucking of Crude Oil to Edo Refinery

Trucking of oil from the Oza Field has continued steadily to the ERPC facility in Edo State, Nigeria. An additional volume of approximately 3,000 bbls has been delivered since the completion of the first 10,000 bbls previously delivered and invoiced under the current 30,000 bbls agreement. Permits for ten additional trucks have been obtained, resulting in a total available fleet of 20 trucks. Once the additional trucks are contracted and in operation consistent deliveries totaling approximately 5,000 bbls per week are expected.

Anticipated Agreement with ERPC for Additional 150,000 bbls

Decklar and Millenium are at an advanced stage of executing a new 150,000 bbls crude oil sale and purchase agreement with ERPC, which is expected to include terms for invoicing and payment after the delivery of each cargo of 10,000 bbls of crude oil.