San Leon Regulatory News (SLE)

30 November 2023

San Leon Energy plc

("San Leon")

Update on Oza field, Nigeria

San Leon, the independent oil and gas production, development and exploration company focused on Nigeria, notes the announcement made on 30 November 2023 by Decklar Resources Inc. ("Decklar") in Canada. 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$5.5 million loan to DPL, via 10% per annum unsecured subordinated loan notes. 

As stated in its announcement on 1 March 2023, San Leon continues to explore a potential sale of its non-core investments in DPL, although any completion remains subject to the proposed purchaser finalising its own funding arrangements. A further announcement will be made in relation to this at the appropriate time.

Part of the text of Decklar's announcement is set out below:

"? Decklar Resources Inc. ("Decklar") and its co-venturer Millenium Oil & Gas Company Limited ("Millenium") announce that the final approval required to commence exports through the Trans Niger Pipeline ("TNP") to the Bonny Export Terminal has been received. The granting of approval for the recertified fiscal metering unit allows access and injection of production from the Oza Oil Field into the TNP for transport to and export from the Bonny Export Terminal.

? Decklar and Millenium have commenced export of crude oil production from the Oza Oil Field through the TNP for transport to the Bonny Export Terminal and sale to Shell Western Supply and Trading Limited.

Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1) (the "Company" or "Decklar") and its co-venturer Millenium are pleased to announce receipt of all necessary permits and approvals required to transport oil through the TNP to the Bonny Export Terminal and the commencement of crude oil production from the Oza Oil Field. The initial production rates have been averaging 750 barrels of oil per day ("bopd").

Sale of Crude Oil from the Oza Oil Field

As previously announced, Decklar and Millenium obtained the necessary permits required to sell and export crude oil from the Oza Oil Field and have now received approval for the re-certification of fiscal metering equipment required from Nigerian government agencies to allow for access and production into the TNP.

Millenium, as operator of the Oza Oil Field, has signed a Crude Handling and Terminaling Agreement ("CHTA") with the Shell Petroleum Development Company of Nigeria Limited ("SPDC") whereby crude oil produced at the Oza Oil Field will be delivered through the TNP to the SPDC Bonny Export Terminal. The CHTA provides for initial available throughput capacity of 1,200 bopd. Oil currently held in storage tanks at the Oza Oil Field will also be injected into the TNP, and arrangements are being finalized to have the approximately 8,000 bbls previously delivered to Umugini Pipeline Infrastructure Limited ("UPIL") and held in storage at the Forcados export terminal tank farm lifted and sold.

Re-Establishing Pipeline Access

The TNP flows into the SPDC-operated Bonny Export Terminal and had been shut down for over one year due to damage, vandalism and high line losses. The TNP was reopened in April 2023, with efforts and support from the Nigerian government credited to a great degree for the resumption of operations."

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