Proactive Investors - San Leon Energy PLC has flagged up an announcement made by Decklar Resources in Canada regarding two new crude oil sale and purchase agreements.
The first agreement signed by Decklar and its co-venturer Millenium Oil & Gas Company Limited is to deliver an additional 150,000 barrels of crude oil to the Edo Refinery and Petrochemicals Company Limited (ERPC) in Edo State, Nigeria.
The second agreement with Duport Midstream Company Limited is to deliver an initial 5,000 barrels to the Duport refinery, followed by a minimum of 2,500 barrels per month thereafter.
Decklar also said trucking of crude oil from the Oza Field to the ERPC refinery has continued, with another delivery of 5,000 barrels completed, making a total of approximately 17,000 barrels delivered under the 30,000 barrels crude sale agreement.
Decklar and Millenium plan to secure additional trucks and permits to service the increased sales volumes, allowing for the Oza Oil Field to be produced at full capacity from the Oza-1 and Oza-4 wells.
San Leon has a 11% shareholding in Decklar Petroleum Limited (DPL), the local subsidiary of Decklar operating in Nigeria, and has also made a US$5.5mln loan to DPL, via 10% per annum unsecured subordinated loan notes.
San Leon reaffirmed its commitment to selling its non-core investments in DPL, but said completion of the sale is subject to the purchaser finalising its own funding arrangements.