Decklar Resources Inc. (DKL-TSX Venture)
(
the “Company” or “Decklar”) announces the
completion of a non-binding Letter of Intent to purchase all of the
issued and outstanding ordinary shares of Purion Energy Limited
(“Purion”), a Nigerian entity that has the right to enter into a
Risk Finance and Technical Services Agreement (“RFTSA”) with Prime
Exploration and Production Limited (“Prime”) to participate in the
Asaramatoru field in Nigeria, located in OML 11, the same block
where Decklar is also currently developing the Oza Field.
Decklar is also pleased to announce the
appointment of David Halpin as Chief Financial Officer of the
Company.
The Asaramatoru Field
The Asaramatoru field, operated and owned 51% by
Prime and owned 49% by Suffolk Petroleum Limited (“Suffolk”), is
situated onshore in the southern swamp section of OML 11 in the
Eastern Niger Delta area, which is one of the largest onshore oil
producing blocks spanning the coastal swampy section in the south
to dry land in the north. The Asaramatoru field is situated in the
vicinity of Andoni Local Government Area in mangrove forested
terrain and is approximately 45 km S/SE of the oil city of Port
Harcourt in Rivers State and approximately 40 km south of the Oza
Field. The Bonny Oil Export Terminal and Bonny LNG plant are
located approximately 15 km south of the Asaramatoru field.
The Asaramatoru field was formerly operated by
Shell Petroleum Development Company of Nigeria Limited (“SPDC”).
The Asaramatoru field was awarded to Prime and Suffolk by the
Federal Government of Nigeria in 2004 as part of the first Marginal
Field Program. A subsidiary of Prime was appointed operator of the
field.
Two wells were drilled in the Asaramatoru field
by SPDC, and both wells encountered oil and gas in several stacked
reservoirs. The wells were both suspended by SPDC as oil and gas
discoveries. Data available includes 3-D seismic and wireline log
data. Prime and Suffolk re-entered the existing two wells and
commenced initial production activities in 2014. The wells produced
an average of 2,700 barrels oil per day for over three years, with
the crude production being barged to an offshore facility for
storage and export. The two wells have been shut in since late 2018
due to lower oil prices and logistics connected with barging and
export activities.
The next planned stages for development of the
Asaramatoru field include restarting production from the two
existing wells, drilling and completion of five to seven additional
wells, installation of production and export facilities, and
construction of flowlines. The SPDC crude export pipeline to the
Bonny Terminal has a tie-in point at Oloma Flow Station, located
approximately 10 km from the field.
The full field development plan will include the
expansion of the processing facilities to enable handling and
processing of up to 20,000 barrels of crude per day for the
expected peak production levels.
Letter of Intent between Purion and
Decklar
Decklar and Purion have signed a non-binding
letter of intent with respect to the proposed acquisition by
Decklar (the “Transaction”) of all of the issued and outstanding
ordinary shares of Purion (the “Purion Shares”). Purion has
separately entered into a Heads of Agreement with Prime in respect
of the entering of a RFTSA with Prime with respect to the 51%
equity interest that was awarded to Prime for the Asaramatoru
field. Further, Decklar is aware that Purion is seeking to enter
into a Heads of Agreement with Suffolk to enter an additional RFTSA
in respect of Suffolk’s 49% interest in the Asaramatoru field.
The Transaction terms will be based on the
issuance of up to 5,500,000 common shares of Decklar (“Decklar
Shares”), as consideration for the acquisition of all the issued
and outstanding Purion Shares. In the event Purion has not entered
into an RFTSA in respect of the Suffolk interest at the time of
completion of the Transaction, the number of Decklar Shares to be
issued to the shareholders of Purion shall be 3,750,000. The
specific terms of the Transaction remain under negotiation, and the
Transaction will be structured and definitive agreements entered
into following the review and consideration of applicable tax,
securities, corporate law and other relevant considerations and
shall be subject to the mutual agreement of Decklar and Purion,
acting reasonably. The Letter of Intent shall terminate with
Decklar and Purion having no further obligations to each other
under the agreement upon mutual written agreement to terminate or
by either party if definitive agreements have not been entered into
by July 15, 2021. The Transaction will be subject to customary
conditions precedents to completion, including approval of the TSX
Venture Exchange.
Appointment of New Chief Financial
Officer
Decklar is pleased to announce the appointment
of Mr. David Halpin as Chief Financial Officer of the Company.
Mr. Halpin brings over 25 years of experience in
management and as a finance and accounting executive and consultant
for public and private Canadian and international resource
companies, including several Nigeria-based oil and gas
companies.
David is the former CFO and Senior Financial
Advisor for Mart Resources, Inc., a TSX-listed company with oil
production in Nigeria that had a peak market capitalization of over
CDN $750 million. He was also a director of a TSXV-listed company
focused on exploration and development of oil and gas opportunities
in Saskatchewan and Alberta and was a founder and CFO of a
TSXV-listed healthcare and insurance software company. Mr. Halpin
is also the VP Finance of the Company’s wholly-owned subsidiary
Decklar Petroleum Limited, a position he has held since
mid-2020.
He is a Certified Management Accountant (CMA)
from the Institute of Management Accountants and holds a B.Sc. in
Business Administration from Arizona State University.
Duncan Blount, CEO and Director of Decklar,
stated:
“Mr. Halpin succeeds Paula Kember, who served
the Company and its predecessor company for 13 years in various
roles including most recently CFO and Corporate Secretary. We wish
to sincerely thank Paula for her important role in bringing the
Company to where we are now. Paula played a fundamental role in the
development and evolution of the Company, and we wish her the best
in all her future endeavors.”
Mr. Blount continued, “We would also like to
welcome Mr. Halpin to the executive management team and look
forward to working together as we build Decklar Resources into a
multi-asset producing oil company.”
The Company will continue to engage Ms. Kember
as a consultant as may be needed from time to time and to assist
with the transition of duties.
For further information:
Duncan T. BlountChief Executive Officer Telephone: +1 305 890
6516Email: dblount@decklarresources.com
David HalpinChief Financial Officer Telephone: +1 403 816
3029Email:davidhalpin@decklarpetroleum.com
Investor Relations: info@decklarresources.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Cautionary Language
Certain statements made and information
contained herein constitute "forward-looking information" (within
the meaning of applicable Canadian securities legislation),
including entering into definitive agreements in respect of the
Transaction and satisfaction of conditions precedent to completion
of the Transaction. All statements in this news release, other than
statements of historical facts, are forward-looking statements.
Such statements and information (together, "forward looking
statements") relate to future events or the Company's future
performance, business prospects or opportunities. There is no
certainty that definitive agreements in respect of the Transaction
will be entered into, or that any conditions precedent contained
therein will be satisfied on terms satisfactory to the parties or
at all.
All statements other than statements of
historical fact may be forward-looking statements. Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance (often, but not always, using words
or phrases such as "seek", "anticipate", "plan", "continue",
"estimate", "expect, "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should",
"believe" and similar expressions) are not statements of historical
fact and may be "forward-looking statements". Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. The Company believes that the expectations reflected in
those forward-looking statements are reasonable, but no assurance
can be given that these expectations will prove to be correct and
such forward-looking statements should not be unduly relied upon.
The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by
applicable laws. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil
prices, results of exploration and development activities,
uninsured risks, regulatory changes, defects in title, availability
of materials and equipment, timeliness of government or other
regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of
third party service providers, equipment and processes relative to
specifications and expectations and unanticipated environmental
impacts on operations. Actual results may differ materially from
those expressed or implied by such forward-looking statements.
The Company provides no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
does not assume the obligation to revise or update these
forward-looking statements after the date of this document or to
revise them to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities
laws.
Decklar Resources (TSXV:DKL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Decklar Resources (TSXV:DKL)
Historical Stock Chart
From Jul 2023 to Jul 2024