Sequel to the Company’s previous announcement made on 3 May 2022, San Leon, the independent oil and gas Production, Development and Exploration Company focused on Nigeria, has provided operational update on the Oza oil field in Nigeria. This latest disclosure is in respect of its potential follow-on investment in producing oilfield.

 On 3 May 2022, it was noted that the Company had an option until 30 June 2022 ( Option Period) to provide a further loan of US$2.5 million to Decklar Resources Limited, in order to increase its shareholding in Decklar from 11% to 15% (or otherwise accept the pro rata reduction in its shareholding in Decklar to 11%).

San Leon is currently in discussions with Decklar in respect of potentially extending the Option Period. The Company will release further announcements as and when appropriate.

Oza oilfield is a 20 square kilometres concession was carved out of OML 11 in 2003 as part of the Government’s Marginal Field Development Program, formerly operated by Shell Petroleum Development Company of Nigeria Ltd and was awarded to Millenium Oil and Gas Company Limited having won the bid during the 2003 Marginal Fields Licensing Round. Decklar Resources is developing the field through a Risk Service Agreement (RSA) with Millenium. The Oza Field is surrounded by producing fields operated by Shell, including Isirmi, Obeakpu, Afam, Obigbo and Umuosi.