Decklar Resources Inc. (DKL-TSX Venture)
(
the “Company” or “Decklar”) is pleased to
announce the completion of a Share Purchase Agreement to purchase
all of the issued and outstanding ordinary shares of Purion Energy
Limited (“Purion”), a Nigerian entity that has entered into a Risk
Finance and Technical Services Agreement (“RFTSA”) with Prime
Exploration and Production Limited (“Prime”), the Operator of the
Asaramatoru Oil Field, to participate in the continued development
of the oil resources in the field. The Asaramatoru Oil Field is
located in OML 11, the same block where Decklar is also currently
developing the Oza Oil Field.
Share Purchase Agreement between Purion
and Decklar
Decklar and Purion have signed a Share Purchase
Agreement (“SPA”) with respect to the acquisition by Decklar of all
of the issued and outstanding ordinary shares of Purion (the
“Purion Shares”). Purion has separately entered into a RFTSA with
Prime with respect to the 51% equity interest that was awarded to
Prime in the Asaramatoru Oil Field. Further, Decklar is aware that
Purion is also seeking to enter into a RFTSA with Suffolk Petroleum
(“Suffolk”) in respect of Suffolk’s 49% interest in the Asaramatoru
Oil Field.
The SPA terms are based on the issuance of up to
5,500,000 common shares of Decklar (“Decklar Shares”), as
consideration for the acquisition of all the issued and outstanding
Purion Shares. An initial issuance of 3,750,000 shares will be
completed, and in the event Purion enters into an RFTSA in respect
of the Suffolk interest, an additional 1,750,000 Decklar Shares
will be issued to the shareholders of Purion. The Transaction will
be subject to customary conditions precedents to completion,
including approval of the TSX Venture Exchange.
The Asaramatoru Field
The Asaramatoru Field, operated and owned 51% by
Prime and owned 49% by Suffolk Petroleum Limited (“Suffolk”), is
situated onshore in the southern swamp section of OML 11 in the
Eastern Niger Delta area, which is one of the largest onshore oil
producing blocks spanning the coastal swampy section in the south
to dry land in the north. The Asaramatoru Field is situated in the
vicinity of Andoni Local Government Area in mangrove forested
terrain and is approximately 45 km S/SE of the oil city of Port
Harcourt in Rivers State and approximately 40 km south of the Oza
Field. The Bonny Oil Export Terminal and Bonny LNG plant are
located approximately 15 km south of the Asaramatoru field.
The Asaramatoru Field was formerly operated by
Shell Petroleum Development Company of Nigeria Limited (“SPDC”).
SPDC discovered the oil field in 1973 with the drilling of the
AST-1 well, which discovered 10 hydrocarbon bearing reservoirs. The
AST-2 well was drilled by SPDC in 1989 and discovered additional
oil reservoirs in a separate fault block. SPDC never placed the two
wells on production and suspended both wells after the drilling and
completion activities. Data available includes the wireline well
logs, additional test data, and a 3D seismic survey conducted in
1996.
The Asaramatoru Field was awarded to Prime and
Suffolk by the Federal Government of Nigeria in 2004 as part of the
first Marginal Field Program. A subsidiary of Prime was appointed
operator of the field. Prime and Suffolk re-entered the existing
two wells and commenced initial production testing activities in
2014. The wells produced an average of 2,700 barrels oil per day
during intermittent production over three years, with the crude
production being barged to an offshore facility for storage and
export. The two wells have been shut in since late 2018 due to
lower oil prices and logistics connected with barging and export
activities, and limited storage facilities at the well
locations.
Decklar and Prime’s next planned stages for
development of the Asaramatoru Oil Field include pulling out the
existing tubing from the AST-1 and AST-2 wells, running cement bond
logs and cased hole reservoir saturation logs and running new
dual-string completions in both existing wells. It is then
anticipated that an additional seven wells will be drilled for full
field development, and production facilities, flow lines, and
export facilities will be installed in phases as the field
development progresses.
The full field development plan will include the
expansion of the processing facilities to enable handling and
processing of up to 20,000 barrels of crude per day for the
expected peak production levels including installing a 10 km export
flow-line from the Asaramatoru Oil Field to a tie-in point at the
Oloma Flow Station which is connected to the nearby Bonny Export
Terminal.
Duncan Blount, CEO of Decklar, stated, “The
participation in the proven Asaramatoru Oil Field is another
significant milestone for Decklar in our growth strategy of
acquiring and developing near-term cash flow generating assets in
Nigeria’s Niger Delta region. With the acquisition of the interest
in the Asaramatoru Field, we expect that Decklar will be producing
from two oil fields, the Oza Field and the Asaramatoru Field, by
the end of the year.”
Update on Unit Offering
Decklar also announces that it is no longer
seeking to complete the remaining $4,925,000 of the Company’s
$15,000,000 non-brokered unit financing (the “Offering”). The
Offering was conducted by way of a unit offering at a price of
$1.00 per unit (a “Unit”), with each Unit consisting of one common
share of Decklar (a “Common Share”) and one-half common share
purchase warrant (each whole warrant, a “Warrant”). Each Warrant
entitles the holder thereof to acquire one Common Share at an
exercise price of $1.50 per Common Share for a period of 12 months
from the closing date of the Offering.
The first closing of the Offering was completed
for total gross proceeds of CAD $10,075,000 in respect of
subscriptions for 10,075,000 Units, with net proceeds to the
Company totaling CAD $9,404,700.
Funds raised by the Offering will be used to
pursue new oil and gas development opportunities in Nigeria, to
continue to develop the Oza Oil Field, and for general corporate
purposes.
For further information:
Duncan T. BlountChief Executive Officer Telephone: +1 305 890
6516Email: dblount@decklarresources.com
David HalpinChief Financial Officer Telephone: +1 403 816
3029Email:davidhalpin@decklarpetroleum.com
Investor Relations: info@decklarresources.com
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.
Cautionary Language
Certain statements made and information
contained herein constitute "forward-looking information" (within
the meaning of applicable Canadian securities legislation). 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.
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.
Decklar Resources (TSXV:DKL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Decklar Resources (TSXV:DKL)
Historical Stock Chart
From Jul 2023 to Jul 2024