San Leon Energy updated the market on its proposed investment in Decklar Petroleum and the Oza Field in Nigeria on Tuesday. The AIM-traded firm said the parties had agreed to extend the completion date to early next year.
As it had previously announced, San Leon said worldwide restrictions put in place in response to the Covid-19 pandemic had slowed the logistical process in concluding the conditions precedent in the subscription agreement.
What they are saying
The board stated that despite the impact of the Covid-19 pandemic on getting the deal done,
- “The parties involved continue to make progress and the trading subsidiary of a major oil company, which along with a local Nigerian bank, is to provide a five-year term debt to Millennium Oil and Gas Company, Decklar’s local partner, has provided a further written confirmation of its support of the transaction”
- “Given the proximity of the Christmas holiday period, the parties have decided to review the status of the outstanding conditions in the new year and assess at that time what remains outstanding.”
What you should know
- San Leon Energy Plc is a progressive UK-based independent oil and gas company. The company strives to secure and develop high-potential asset opportunities in Africa.
- Its key asset being OML 18, onshore Nigeria.
- At 1330 GMT yesterday, shares in San Leon Energy were down 0.53% at 22.68p.
- Decklar is an independent international oil & gas company focused on low-risk appraisal and development opportunities in the prolific West African region.
- Decklar is a private company with a management team and shareholder base having significant experience in West Africa. The intention is to list Decklar on the Toronto (TSX Venture Exchange) in the near future.
- The OZA field (“OZA”) in Nigeria’s Niger Delta region is Decklar’s core strategic asset, which is being developed in partnership with Millennium Oil and Gas Company Ltd.
- OZA is a 20sq km concession located within OML 11 and has an export pipeline which is tied into the Trans Nigerian Pipeline (TNP) oil pipeline, flowing to the Bonny Export Terminal, also located on OML 11 operated by Shell Petroleum Development Company (“SPDC”).