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San Leon Energy highlights Decklar is getting the ball rolling at Oza field

Decklar has raised C$4mln from equity to kick start production at Oza whilst US$7.5mln of debt funding assisted by San Leon will now pay for a new well.

San Leon Energy PLC - San Leon Energy highlights Decklar is getting the ball rolling at Oza field

San Leon Energy PLC (LON:SLE) has noted the news of an additional fund raise by Decklar Resources, which is due to receive US$7.5mln of debt financing from the AIM-quoted oil and gas investor.

Decklar today reported a private placement of just over C$4mln, which in February, and will allow it to immediately start work to re-enter the Oza-1 well, at the Oza oil field in Nigeria.

The programme will restart production at the Oza field.

San Leon noted that the previously announced debt funding arrangements, of which it is a part, are now in the final stages of being completed.

San Leon noted that definitive loan documents for the debt funding are nearing conclusion with the Nigerian bank, the US$7.5mln remains in escrow, and will be released in the near future.

“The funds proposed to be used from San Leon on Oza are now expected to be used on the drilling of the new well on the Oza structure,” the company said in a statement.

“The additional investment outlined by Decklar Resources is not expected by San Leon to have a material effect on San Leon's investment risk or returns.”

Decklar also reported that civil works necessary for the Oza-1 programme had been completed and a drill rig, located nearby, has been contracted and will be mobilised. At the same time, it noted that an export pipeline is already in place along with other infrastructure. It means that oil from early production can be delivered immediately and sold on an expedited basis.

Quick facts: San Leon Energy PLC

Price: 34.05 GBX

AIM:SLE
Market: AIM
Market Cap: £153.2 m
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San Leon Energy invests US$7.5mln into Oza oil field in Nigeria

San Leon Energy PLC's (LON:SLE) Oisin Fanning speaks to Proactive London's Katie Pilbeam about its new US$7.5mln investment into the Oza oil field in Nigeria. The structure of the deal is via a loan agreement with Decklar Petroleum, a subsidiary of Asian Mineral Resources (CVE:ASN). San Leon...

on 4/9/20

2 min read