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San Leon Energy PLC on Friday said production on the Oza oil field in Nigeria was up, while it remains in advanced discussions to sell its ‘non-core’ investments in Decklar Petroleum Ltd.
Shares in San Leon Energy were down 5.3% to 34.10 pence each in London on Friday morning.
The Nigeria-focused oil and gas production, development and exploration company noted Decklar’s announcement on Thursday, in which it said it and its co-venturer Millenium Oil & Gas Company Ltd received the first payment for the sale of crude oil from the Oza oil field since operations restarted.
San Leon Energy has an 11% shareholding in Decklar and previously made a $5.5 million loan to Decklar via 10% per annum unsecured subordinated loan notes.
Production since the recommencement of operations has increased to 1,300 barrels of oil per day, with around 900 bopd from the Oza-1 well and new production of around 400 bopd follow minor repairs to the Oza-4 well.
Trucking of oil has continued from the Oza field to the Edo Refinery and Petrochemicals Company Limited in Edo State, Nigeria, Decklar said.
San Leon Energy said ten trucks are currently in operations and are capable of delivering around 2,500 barrels every four days, with additional trucks expected to be contracted over the next few weeks to increase delivery capacity.
Decklar and Millenium have issued another invoice for delivery of 5,000 barrels of crude oil to ERPC under their recently-signed crude sale agreement of around 30,000 barrels. Initial payment for previous deliveries of around 10,000 barrels have also been received.
Meanwhile, San Leon Energy said it remains in advanced negotiations regarding the proposed sale of its ‘non-core’ investments in Decklar.
It said completion of the proposed sale is subject to the purchaser finalising its own funding arrangements.
By Greg Rosenvinge, Alliance News reporter
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