Decklar Resources Inc. Provides Update to Funding for Restart of Production at its Oza Oil Field
January 29 2021 - 12:57PM
Decklar Resources Inc. (DKL-TSX Venture)
(the “Company”) is pleased to provide an update to
previously announced funding arrangements by its wholly-owned
Nigeria-based subsidiary, Decklar Petroleum Limited, to develop the
Oza Oil Field in Nigeria. When fully disbursed, these funds are
expected to be sufficient to re-establish oil production and
provide development funding for the Company’s Oza Oil Field. The
details of the funding plans are included in the Company’s August
31, 2020 press release.
Update Regarding Funding
Arrangements
The due diligence required to finalize the term
debt arranged with a Nigerian bank and the trading subsidiary of a
large multinational oil company active in Nigeria has progressed,
and the final report by the independent technical consultant they
contracted and based on review of reserve and production data and
financial projections has been issued. The definitive loan
documents are now being finalized and are anticipated to be issued
by the end of the first week of February 2021. As previously
announced, the remainder of the US$7,500,000 for the subscription
agreement with San Leon Energy Plc remains in escrow and will be
released upon satisfaction (or waiver) of the final conditions
precedent contained in the agreement.
Update Regarding Oza Field
Preparation
Well Site and drilling location preparation for
the Oza-1 well re-entry and first horizontal development well have
moved forward, and we are pleased to report have now been
completed. The road to the well site location has been rebuilt and
construction of a concrete drilling pad, concrete mud pit,
buildings and related infrastructure have been completed. Long lead
time items needed for the Oza-1 re-entry have been secured, and a
drilling rig currently located near the field has been identified
and contracted.
As previously reported, an export pipeline that
ties the Oza Oil Field production into the Trans Niger Pipeline
(TNP) and continues on to the Bonny Export Terminal, operated by
Shell Production Development Company (SPDC) is already in place.
Infrastructure also in place at the Oza Oil Field includes a lease
automatic custody transfer (LACT) unit fiscal metering system,
infield flow-lines, manifolds and a rental 6,000 barrel per day
early production facility. These production and pipeline facilities
ensure that oil tested from the Oza-1 well re-entry and early
production will be immediately delivered and sold on an expedited
basis.
For further information:
Duncan T. BlountChief Executive Officer
Telephone: +1 305 890 6516Email:
dblount@decklarresources.com
David HalpinVP Finance, Decklar Petroleum
Telephone: +1 403 816 3029Email:
davidhalpin@decklarpetroleum.com
Investor Relations: info@decklarresources.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Language
Certain statements made and information
contained herein constitute "forward-looking information" (within
the meaning of applicable Canadian securities legislation). All
statements in this news release, other than statements of
historical facts, including statements with respect to the Company
satisfying all outstanding conditions precedent in order to
complete the transaction with San Leon are forward-looking
statements. Such statements and information (together, "forward
looking statements") relate to future events or the Company's
future performance, business prospects or opportunities.
All statements other than statements of
historical fact may be forward-looking statements. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "seek", "anticipate", "plan", "continue",
"estimate", "expect, "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe" and similar expressions) are not statements of historical
fact and may be "forward-looking statements". Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. The Company believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil
prices, results of exploration and development activities,
uninsured risks, regulatory changes, defects in title, availability
of materials and equipment, timeliness of government or other
regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of
third party service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
The Company provides no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not assume the obligation to revise or update these
forward-looking statements after the date of this document or to
revise them to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities
laws.
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