San Leon Energy PLC (AIM:SLE, AQSE:SLE, FRA:SZX1, OTC:SLGYF) highlighted positive well results for Decklar Resources in the Oza field in Nigeria.
The company, which has an investment agreement with Decklar, noted that the Oza-1 well re-entry programme has now seen initial gas flows of 10.3mln cubic feet and 1,361 barrels of oil per day.
Oza-1 is now expected to be put on commercial production, once completion equipment is installed.
Presently, the transaction for San Leon to purchase US$7.5mln of loan notes – plus a possible further US$7.5mln investment – is awaiting the completion of final conditions.
Following the re-entered well a horizontal drilling strategy is envisaged and also artificial lift strategies are also being evaluated by Decklar.
It was noted that Oza has significant export and production capacity through processing facilities and infrastructure already in place and operational which expedite the start of production and sales.