{"id":9796,"date":"2021-02-02T18:52:48","date_gmt":"2021-02-02T18:52:48","guid":{"rendered":"https:\/\/oilnewskenya.com\/?p=9796"},"modified":"2021-02-02T18:52:48","modified_gmt":"2021-02-02T18:52:48","slug":"nigeria-san-leon-energy-provides-update-on-investment-in-oza-field-2","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-energy-provides-update-on-investment-in-oza-field-2\/","title":{"rendered":"NIGERIA: San Leon Energy Provides Update on Investment in Oza Field"},"content":{"rendered":"<p class=\"bo\">San Leon has provided an update on the funding arrangements by Decklar Petroleum Limited to develop the Oza Oil Field in Nigeria.\u00a0 When fully disbursed, the funding is expected to be sufficient to re-establish oil production and provide development funding for the Oza Oil Field.<span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bs\"><strong><span class=\"bj\">Update Regarding Funding Arrangements<\/span><\/strong><\/p>\n<p class=\"bo\"><span class=\"bj\">\u00a0<\/span><span class=\"bj\">The due diligence required to finalise the term debt to Millenium Oil and Gas Company Limited, Decklar&#8217;s local partner, 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 that they contracted, which is based on a review of reserve and production data and financial projections, has been issued. The definitive loan documents are now being finalised and are anticipated to be issued by the end of the first week of February 2021.<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">The details of the funding plans\u00a0<\/span><span class=\"be\">for the development of the Oza Oil Field\u00a0<span class=\"bb\">were included in the Company&#8217;s announcement of 1 September 2020.\u00a0 In particular, San Leon has entered into a subscription agreement (the\u00a0&#8220;Subscription Agreement&#8221;) with Decklar. The Subscription Agreement entitles San Leon to purchase US$7,500,000 of 10% unsecured subordinated loan notes of Decklar (the\u00a0&#8220;Loan Notes&#8221;) and 1,764,706 ordinary shares of Decklar (&#8220;Decklar Shares&#8221;) (representing 15% of the enlarged share capital of Decklar) for a cash consideration of US$7,500,000 and\u00a0<span class=\"bc\">N<\/span>1,764,706 (c.US$4,600) respectively. \u00a0Aside from an initial deposit of US$750,000, the balance of San Leon&#8217;s proposed investment in Decklar is being held in escrow and will be released upon satisfaction (or waiver) of the final conditions precedent contained in the\u00a0<\/span>Subscription A<span class=\"bb\">greement.<\/span>\u00a0A further announcement will be made in due course in relation to the completion of the Subscription Agreement.<\/span><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">In addition, and as previously announced, Decklar and San Leon have entered into an option agreement that, at San Leon&#8217;s sole discretion, entitles San Leon to purchase an additional US$7,500,000 of Loan Notes and 2,521,008 Decklar Shares (representing an additional 15% of the enlarged share capital of Decklar, together with a gross-up of the original 15% so as to provide San Leon with a total of 30% of the enlarged share capital of Decklar) for a cash consideration of US$7,500,000 and\u00a0<span class=\"bc\">N<\/span>2,521,008 (c. US$6,500), respectively, at any time until the date that is forty-five (45) days after the well test results of the first development well on the Oza Oil Field have been delivered to San Leon.<\/span><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bs\"><strong><span class=\"bj\">Update Regarding Oza Field Preparation<\/span><span class=\"bj\">\u00a0<\/span><\/strong><\/p>\n<p class=\"bo\"><span class=\"bj\">Well site and drilling location preparation for the Oza-1 well re-entry and first horizontal development well have progressed, and the Company is pleased to report\u00a0<\/span><span class=\"be\">that these steps\u00a0<span class=\"bb\">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 also 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.<\/span><\/span><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">As previously reported, an export pipeline that ties the Oza Oil Field production into the Trans Niger Pipeline and continues on to the Bonny Export Terminal, operated by Shell Production Development Company, is already in place. Infrastructure also in place at the Oza Oil Field includes a lease automatic custody transfer unit fiscal metering system, infield flow-lines, manifolds and a rental 6,000 barrel per day early production facility. These production and pipeline facilities should ensure that oil tested from the Oza-1 well re-entry and early production can be immediately delivered and sold on an expedited basis.<\/span><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bs\"><span class=\"bj\">Oisin Fanning, Chief Executive officer, commented:<\/span><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">&#8220;<\/span><span class=\"bj\">As we have previously announced, the global restrictions imposed in response to the Covid-19 pandemic frustrated our attempts to complete our investment in the Oza Oil Field on our original timeframe. \u00a0I am however pleased to report that, through the combined efforts of all of the partners, we are now close to concluding the funding arrangements.\u00a0 In the meantime, significant preparatory work has been completed on site and we now anticipate being able to start the project promptly.<\/span><span class=\"bj\">\u00a0<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">&#8220;<\/span><span class=\"bj\">The Oza Oil Field is an existing field with historical production expected to deliver near-term cash flow.\u00a0 Furthermore, we have structured the transaction to minimise our own risk through a repayable loan at an attractive interest rate with an additional significant equity upside. The option to scale up our investment following receipt of the well test results provides us with valuable informed optionality.&#8221;<\/span><\/p>\n<p class=\"bo\"><span class=\"bj\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>San Leon has provided an update on the funding arrangements by Decklar Petroleum Limited to develop the Oza Oil Field in Nigeria.\u00a0 When fully disbursed, the funding is expected to &hellip; <a href=\"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-energy-provides-update-on-investment-in-oza-field-2\/\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":9013,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11,7444],"tags":[8962,8351,8349,1749,8961,8775,8348,8029,8963],"class_list":["post-9796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","category-west-africa","tag-bonny-export-terminal","tag-decklar-petroleum-limited","tag-millenium-oil-and-gas-company-limited","tag-nigeria","tag-oza-1","tag-oza-field","tag-oza-oil-field","tag-san-leon","tag-shell-production-development-company","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-2y0","jetpack-related-posts":[{"id":9012,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-provides-7-5m-funding-for-development-of-oza-field\/","url_meta":{"origin":9796,"position":0},"title":"NIGERIA: San Leon provides $7.5M funding for development of Oza Field","author":"","date":"September 1, 2020","format":false,"excerpt":"San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, announces that it has conditionally agreed to invest US$7.5 million by way of a loan to Decklar Petroleum Limited, the local subsidiary of Asian Mineral Resources Limited. Decklar is the holder of a Risk Service\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13676,"url":"https:\/\/www.oilnewskenya.com\/index.php\/san-leon-energy-provides-update-on-oza-field\/","url_meta":{"origin":9796,"position":1},"title":"NIGERIA: San Leon Energy Provides Update on Oza Field","author":"","date":"May 9, 2023","format":false,"excerpt":"San Leon say itcontinues to explore a potential sale of its non-core investments in DPL although the completion remains subject to the purchaser finalising its own funding arrangements, further details of which were most recently announced by San Leon on 24 March 2023. Part of the text of Decklar's announcement\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/05\/Oza-Oil-Field.png?fit=554%2C522&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/05\/Oza-Oil-Field.png?fit=554%2C522&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2023\/05\/Oza-Oil-Field.png?fit=554%2C522&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":9575,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-energy-provides-update-on-investment-in-oza-field\/","url_meta":{"origin":9796,"position":2},"title":"NIGERIA: San Leon Energy Provides Update on investment in Oza Field","author":"","date":"December 17, 2020","format":false,"excerpt":"Further to its previous announcements regarding its proposed investment in Decklar Petroleum Limited and the Oza Field in Nigeria, San Leon announces that the parties have agreed to extend the completion date to early in the new year.\u00a0 As previously announced, worldwide restrictions put in place in response to the\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/nigeria-oil-gas.jpg?fit=563%2C431&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/nigeria-oil-gas.jpg?fit=563%2C431&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/06\/nigeria-oil-gas.jpg?fit=563%2C431&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":12760,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-san-leon-energy-recommences-loading-crude-oil-into-trucks-at-the-oza-oil-field\/","url_meta":{"origin":9796,"position":3},"title":"NIGERIA: San Leon Energy Recommences Loading Crude Oil into Trucks at the Oza Oil Field","author":"","date":"November 1, 2022","format":false,"excerpt":"San Leon notes the announcement made on 27 October 2022 by Decklar Resources Inc. in Canada. \u00a0San Leon has a 11% shareholding in Decklar Petroleum Limited, 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\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/09\/Nigeria-oza_field.jpg?fit=800%2C497&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":13167,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-restart-of-production-from-the-oza-4-well\/","url_meta":{"origin":9796,"position":4},"title":"NIGERIA: Restart of Production from the Oza-4 Well","author":"","date":"January 20, 2023","format":false,"excerpt":"Decklar and Millenium have recommenced production from the Oza Oil Field at a total production rate of approximately 1,300 bopd. The Oza-1 well is currently producing approximately 900 bopd of 22 API crude oil on a 20\/64 inch choke with wellhead pressure of 400 psi and 2.5% BS&W. Following successful\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":12502,"url":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-decklar-announces-resumption-of-production-from-oza-1-well\/","url_meta":{"origin":9796,"position":5},"title":"NIGERIA: Decklar Announces Resumption of Production From Oza-1 Well","author":"","date":"July 26, 2022","format":false,"excerpt":"Decklar Resources provides an update regarding the resumption of production from the Oza-1 well at the Oza Oil Field in Nigeria. Decklar and its co-venturer Millenium Oil & Gas Company Limited have received the permits required to resume production from the Oza-1 well at the Oza Oil Field. Production from\u2026","rel":"","context":"In &quot;Countries&quot;","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/05\/Oza-field.jpg?fit=750%2C664&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/05\/Oza-field.jpg?fit=750%2C664&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/05\/Oza-field.jpg?fit=750%2C664&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/05\/Oza-field.jpg?fit=750%2C664&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/9796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=9796"}],"version-history":[{"count":2,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/9796\/revisions"}],"predecessor-version":[{"id":9798,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/9796\/revisions\/9798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/9013"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=9796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=9796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=9796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}