San Leon Share News (SLE)

(Sharecast News) - Nigeria-focussed oil and gas exploration, development and production company San Leon noted an announcement from Decklar Resources on Thursday, having entered into a conditional subscription agreement with Decklar Petroleum - the local subsidiary of Decklar Resources.
The AIM-traded firm said the agreement entitled it to purchase $7.5m of 10% unsecured subordinated loan notes of Decklar Petroleum, and 15% of the enlarged share capital of Decklar Petroleum.

In addition, Decklar Petroleum and San Leon had entered into an option agreement which, at San Leon's sole discretion, entitled it to purchase an additional $7.5m of loan notes and further Decklar Petroleum shares, representing an additional 15% of its enlarged share capital.

The transaction was still awaiting final conditions to complete.

In its announcement, Decklar asaid re-entry and testing operations at the Oza-1 well were continuing to move forward "steadily", leading the way to advancing its overall re-entry and development plans for the Oza oil field.

The pulling of existing tubing and 5 1/2 inch casing from the Oza-1 wellbore was successfully completed, and the 9 5/8 inch casing was cleaned out.

A cement bond log was completed to confirm integrity of the cement behind casing, and cased hole reservoir logs were also completed, confirming the characteristics of the individual zones to be tested.

"Surface testing facilities are currently being installed, and it is anticipated that testing activities on the L2.6 zone are expected to commence early next week with the initial perforation and flow operations," the announcement said.

"It is anticipated that initial oil production testing will then commence, with all crude oil test volumes produced being immediately exported and sold through the existing production facilities and pipelines to the Bonny Export Terminal."