- Decklar and its co-venturer Millenium Oil & Gas Company Limited (“Millenium”) have received the first payment for the sale of crude oil from the Oza Oil Field since recommencement of operations.
- Decklar and Millenium have now increased production from the Oza Oil Field to a total rate of approximately 1,300 barrels of oil per day (“bopd”) following the restart of production at approximately 900 bopd from the Oza-1 well and new production at approximately 400 bopd following minor repairs to the Oza-4 well.
- Trucking of oil has continued from the Oza Field to the Edo Refinery and Petrochemicals Company Limited (“ERPC”) in Edo State, Nigeria.
- Decklar and Millenium have issued another invoice for delivery of 5,000 barrels of crude oil (“bbls”) to ERPC under the recently signed 30,000 bbls crude sale agreement., and initial payment for previous deliveries totaling 10,000 bbls has now been received.
CALGARY, Alberta, Jan. 19, 2023 (GLOBE NEWSWIRE) — Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1) (the “Company” or “Decklar”) and its co-venturer Millenium are pleased to provide updates regarding oil production and delivery operations at the Oza Oil Field in Nigeria.
Restart of Production from the Oza-4 Well
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 minor repairs, the Oza-4 well has been opened and restarted with current production averaging approximately 400 bopd on a 24/64 inch choke at wellhead pressure of 1,300 psi with 0.01% BS&W.
Trucking of Crude Oil to Edo Refinery
Trucking of oil from the Oza Field is ongoing to the ERPC facility in Edo State, Nigeria. Ten trucks are currently in operation and are capable of delivering approximately 2,500 bbls every four days. Additional trucks are expected to be contracted over the next few weeks to increase delivery capacity.
Receipt of Funds for First Oil Sale
Decklar and Millenium have received payment on the first invoice for delivered crude under the 10,000 bbls sale agreement with ERPC. The Company has now issued an invoice for delivery of the first 5,000 bbls as part of the 30,000 bbl sale agreement with ERPC with payment expected in approximately three weeks. With continued production and delivery of crude oil it is expected that regular billing and receipts of sales proceeds will occur.
Sanmi Famuyide, CEO of Decklar Resources, said, “We are extremely pleased to announce that we received the first payment for Oza field production since the involvement of Decklar and that we have recommenced production from the Oza Field at a rate of approximately 1,300 bopd. The reopening of Oza-4 went very smoothly and the lighter crude produced allows us achieve a crude oil blend with the Oza-1 production that will enable the Company and our co-venturer Millenium to ramp up deliveries of oil to market in the very near future. Additionally, trucking operations to deliver oil to the ERPC facility are running steadily and we are moving into a routine cycle of delivering and selling material quantities of crude oil.”
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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.
Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable Canadian securities legislation), including, but not limited to, statements regarding: the future commercial production of the Oza-1 and Oza-4 wells, obtaining and renewing all trucking permits, timing and delivery of production to trucks for offloading at the oil refinery or storage tanks, the timing for payment of crude oil sales, and the maintaining of stable crude oil production. All statements in this news release, other than statements of historical facts, 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. There is no certainty that definitive agreements in respect of the Transaction will be entered into, or that any conditions precedent contained therein will be satisfied on terms satisfactory to the parties or at all.
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.