Oza-1 Well Re-Entry Update
15 July 2021 - 5:06PM
Decklar Resources Inc. (DKL-TSX Venture)
(
the “Company” or “Decklar”) is pleased to
announce an update to operations at the Oza-1 well re-entry at the
Oza Oil Field in Nigeria, being performed by the Company’s
wholly-owned Nigeria-based subsidiary, Decklar Petroleum Limited.
Rig On-site at Oza-1 Preparing to
Commence Operations
Re-entry operations at the Oza-1 well site are
progressing with functional testing and inspection of the rig
completed, all approvals granted and the initial work activities of
pulling the existing tubing are under way. After the existing
tubing has been removed from the wellbore, a cement bond log will
be run to confirm the integrity of the cement behind the casing,
followed by pulling the 5 ½ inch casing that is inside the 9 ⅝ inch
casing and running cased hole reservoir logs. When the logging is
complete and has been analyzed, the well will be cleaned out and
perforation and production testing operations will commence on the
three known oil-bearing zones (L2.2, L2.4 and L2.6). Each targeted
zone will be production flow tested independently, and all test
volumes produced will be exported and sold through the existing
production facilities and pipelines. Once testing of all three
zones is completed, it is anticipated that a final dual-tubing
string completion will be installed, and the L2.2 and L2.6 zones
placed into production based upon successful testing.
When the Oza-1 re-entry is complete, the
drilling rig is then expected to be skidded on the same drill pad
as the Oza-1 well to a new drilling slot and a horizontal
development well will be drilled in the L2.4 zone. It is
anticipated that this well will then be placed on production upon
successful testing and completion. The Oza-1 well and new
horizontal development well are expected to generate significant
production levels and generate cash flow in a short time frame
utilizing the existing infrastructure in place. The Oza Oil Field
development is planned to then continue with one or two more
re-entries on other existing wells and an additional development
drilling program with a potential for eight to ten wells to be
drilled to achieve full field development. Additional early
production and central processing facilities will be added as
required to accommodate increased production levels from field
development activities.
The Company anticipates that operations for the
re-entry of the Oza-1 well are on track for initial production
testing to commence immediately following perforating and running
the testing string. The Oza Oil Field has significant export and
production capacity through processing facilities and
infrastructure already in place and operational, which will allow
for the immediate export and sale of crude oil from the Oza-1
well.
Decklar also continues to pursue and advance
evaluations and negotiations for additional proven undeveloped oil
and gas fields in Nigeria that have significant reserves and
near-term production potential, including the recently announced
acquisition in the Asaramatoru oil field.
Duncan Blount, CEO of Decklar, stated “As we
progress the Oza-1 re-entry activities and the commencement of
production testing, we are at the forefront of transitioning the
Company from a developer into a producing oil company. Thanks to
the infrastructure already in place, the flow test from the Oza-1
well will go directly into the pipeline to the Bonny Export
Terminal to generate near-term cash flow. We look forward to
ramping up production as we continue towards full field development
at the Oza Field. The cash flow from the Oza Field will support
Decklar’s strategy of consolidating and re-establishing production
of high-margin, proven undeveloped conventional oil fields in
Nigeria.”
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.
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