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San Leon Energy PLC counts down to Oza field programme

() highlighted that preparations for the well re-entry programme at the Oza field in Nigeria is advancing apace with the major drill rig components due on site this week.

Re-entry work is then expected to start at the site within two weeks.

Oza-1’s re-entry programme will also include the testing of three oil zones, each independently, and a combined production test.

The rig is then due to be skidded, on the same drill pad, to a new drilling slot for a horizontal well which, the company highlighted, is expected to deliver significant production levels and cash flow in an abbreviated time frame.

The Oza development is anticipated to then continue with one or two more re-entries on existing wells and additional development drilling. In total the company may drill between eight and 10 new wells in the first phase of the Oza development.

As noted by the company, Oza has significant export and production capacity with processing facilities and infrastructure already in place. It means crude can immediately be exported and sold from the Oza-1 well.

As part of a deal struck in September, San Leon will invest in US$7.5mln of loan notes issued by Decklar Petroleum, the operator of the Oza field, for a 15% interest in the company.

It can also decide later if it wishes to buy another US$7.5mln of loan notes and an additional 15% of Decklar’s shares for US$6,500 up to 45 days after it has received well test results on the first Oza development well.

San Leon also receives interest on the loan notes.

Read More: San Leon Energy PLC counts down to Oza field programme

2021-05-28 02:16:00

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