(Alliance News) - San Leon Energy PLC on Tuesday noted a production update by Decklar Resources Inc, as San Leon continues to pursue a potential sale of its non-core investment in Decklar's Nigerian arm.
San Leon and Decklar Resources are both oil and gas companies focused on Nigeria.
Decklar Petroleum Ltd is Decklar's local subsidiary in Nigeria, in which San Leon has an 11% shareholding. San Leon also has made a USD5.5 million loan to DPL, via 10% per annum unsecured subordinated loan notes.
Decklar told investors on Monday that the trucking of crude oil from the Oza oil field to Petrochemicals Co Ltd's Edo refinery has continued. Total deliveries have now exceeded a total of 30,000 barrels of crude oil in 2023, thus satisfying its crude sale agreement with Petrochemicals.
Decklar added that the trucking of crude oil has continued to the Duport Midstream Co Ltd refinery in Edo State, with over 7,500 barrels delivered to date.
Noting this update, San Leon on Tuesday said it has continued to explore a potential sale of its non-core investment in DPL. San Leon said it has a potential purchaser of the investment, but completion remains subject to the unnamed purchaser finalising its own funding arrangements.
San Leon Energy shares were trading 7.0% lower at 25.10 pence each in London on Tuesday morning.
By Holly Beveridge, Alliance News reporter
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San Leon (SLE)