Decklar Resources Inc. (TSX-V: DKL)
(OTCQX: DKLRF) (FSE: A1U1) (
the “Company” or
“Decklar”) is pleased to announce the closing of its
previously announced transaction to purchase all of the issued and
outstanding ordinary shares of Westfield Exploration and Production
Limited (“Westfield”), a Nigerian entity that has entered into a
Risk Finance and Technical Services Agreement (“RFTSA”) with
Erebiina Energy Resources Limited (“Erebiina”) to participate in
the Emohua Field in Nigeria, located in OML 22, which is 6 km west
of Port Harcourt.
The Emohua Field
The Emohua Field was awarded to Erebiina (60%)
and the balance (40%) to other local Nigerian entities in the
2020/2021 Marginal Field Bid Round and is situated onshore on dry
land terrain in the southeastern section of OML 22 in the Eastern
Niger Delta area. The Emohua Field is situated approximately 6 km
west of the city of Port Harcourt in Rivers State and approximately
30 km west of the Oza Field, which Decklar is currently developing.
The Bonny Oil Export Terminal and Bonny LNG plant are located
approximately 50 km south of the Emohua Field.
The Emohua Field was formerly operated by Shell
Petroleum Development Company of Nigeria Limited (“SPDC”). It was
awarded to Erebiina by the Federal Government of Nigeria in 2021 as
part of the Marginal Field Program.
One well (Emohua-1) was drilled by SPDC in 1979
to a depth of 11,050 ft and encountered oil and gas in several
stacked reservoirs. The well was suspended by SPDC as an oil and
gas discovery. Data available includes 3-D seismic acquired in
2000/2001 and wireline log data. Petrophysical analysis showed the
presence of nine hydrocarbon bearing zones ranging from 20 ft to 70
ft thick. Seismic interpretation also shows upside potential in the
deeper undrilled/untested zones where potential closures exist.
The initial planned stages for development of
the Emohua Field include re-entering the existing Emohua-1 well,
installation of production and export facilities, and construction
of flowlines. The Emohua Field can potentially be placed on
production directly after the re-entry of the Emohua-1 well due to
existing oil and gas export pipelines being located within 5 km of
the well.
The full field development plan will include the
drilling and completion of up to nine additional wells and
expansion of the processing facilities to enable handling and
processing of up to 30,000 barrels of crude per day for the
expected peak production levels.
Purchase of Westfield by
Decklar
Decklar and Westfield previously entered into a
share purchase agreement (the “SPA”) whereby Decklar has purchased
all of the issued and outstanding ordinary shares of Westfield (the
“Westfield Shares”). Westfield has separately entered into an RFTSA
with Erebiina in respect of the 60% equity interest that was
awarded to Erebiina for the Emohua Field. Further, Decklar is aware
that Westfield is seeking to enter separate RFTSAs with one or more
parties in relation to the remaining 40% interest in the Emohua
Field.
The SPA terms included a cash payment of US$7
million, which was previously paid as a deposit to be credited
against the final purchase price, and the issuance of 6,000,000
common shares of Decklar (“Decklar Shares”) as consideration for
the acquisition of all the issued and outstanding Westfield Shares.
In the event Westfield enters into additional RFTSAs in respect of
the remaining 40% interest, up to an additional 2,500,000 Decklar
Shares will be issued to the shareholders of Westfield.
Duncan Blount, CEO of Decklar Resources,
remarked “Closing the acquisition of Westfield now brings a third
asset to our portfolio at Decklar. Similar to the Oza and
Asaramatoru fields, the Emohua Field is a proven undeveloped
conventional oilfield with potential for near-term re-entry and
re-completion activities, followed by subsequent full field
development. We look forward to further incorporating the asset
into our company and progressing development towards near-term oil
production potential. This is an attractive asset, and one that
compliments the rest of our portfolio with a similar infrastructure
advantage.”
For further information: |
|
Duncan T. Blount |
Chief Executive Officer |
Telephone: +1 305 890 6516 |
Email: dblount@decklarresources.com |
|
David Halpin |
Chief Financial Officer |
Telephone: +1 403 816 3029 |
Email: 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.
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