Decklar Resources Inc. Signs Crude Oil Processing Agreement, Provides Up-to-date Information on Nigeria’s Oil Export Business, Canadian Business Journal

  • Decklar and its consortium Millenium Oil & Gas Company Limited (“Millenium”) have signed a crude oil processing contract with Umugini Pipeline Infrastructure Limited (“UPIL”). This will allow the oil produced at Oza Field to be trucked to the UPIL crude oil processing facility. In addition, it was transferred to Nigeria Limited’s Shell Oil Development Company (“SPDC”) JV Volkados Oil Export Terminal via the Umgini Pipeline.
  • The Nigerian government’s regulatory agency permit to transport crude oil by truck is in the final stages of approval, with the first shipment of oil expected to be delivered to the UPIL facility in early April 2022.
  • As previously announced, unexpected downtime, maintenance and other issues with Shell’s Trans-Niger pipeline have delayed Deckler from oil exports from Oza-1 wells and the establishment of commercial production. increase.
  • A second alternative delivery strategy incorporating barging oil from the Oza oil field to offshore floating storage facilities is also being pursued, allowing for greater transport volume once installed. Negotiations with local companies are underway to ensure exports to offshore floating storage and unloading facilities via barging oil.

Calgary, Alberta, March 24, 2022 (GLOBE NEWSWIRE) — Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DLKRF) (FSE: A1U1) ((((“Company” or “Deckler”) Signing of a crude oil processing agreement (“CHA”) to deliver oil produced in Oza Field to UPIL between our wholly owned subsidiary Decklar Petroleum Limited (“DPL”) and its consortium Millenium and UPIL. I am happy to announce. Oza Crude oil processing facility for injecting into the Umgini pipeline for final delivery to the SPDCJV Volkados Oil Export Terminal for export and sale of crude oil production.

Ozafield Oil Export Business – Trucking and Barging

Decklar pursues logistics and export activities and is making progress with several options, including:

  • With the completion and signing of the CHA between DPL, Millennium and UPIL, the oil produced in the Oza oil field will be delivered to the UPIL crude oil processing facility, injected into the Umugini pipeline and transported to the SPDCJV Forcados oil terminal for export and export. I will sell it. ;
  • The permission to transport crude oil by truck from Nigerian regulators is in the final stages of approval. The first shipment of oil to the UPIL export facility is expected to begin in early April 2022.
  • The next step, the most likely medium- to long-term solution for alternative export options, is directly from the Ozafield storage facility along the Imo River to the offshore floating storage and unloading (“FSO”) facility. It is to barge oil. Riffle off the Bonnie River.When
  • Options and logistics for barge oil transportation from Ozafield to offshore floating storage facilities are currently under negotiation. By using barges and FSO systems to ship and export Oza crude, you can increase the amount of crude oil per shipment, making it more transportable and cost-effective.

Operationally, Decklar successfully completed the re-entry, re-entry, and flow testing of the Oza-1 well, as detailed in a press release dated November 5, 2021. The site’s crude oil storage tank currently holds approximately 22,000. A barrel of oil, waiting for export and sale. With commercial production of Oza-1, we expect a stable flow of oil from 1,200 to 1,500 barrels per day (“bopd“).

As mentioned earlier, Deckler and Millennium initially planned to utilize the Trans-Niger pipeline operated by Shell (“TNP”) To Bonnie Export Terminal. However, the link to TNP between Ishimiri and the TNP tie-in at Owaza, where Oza Crude Oil enters the shell-operated pipeline network, goes down for maintenance with an uncertain timeline to resume operations. I am.

As previously announced, Oza Field’s 2022 development plan includes:

  • We are currently in the process of finalizing arrangements with local communities and contractors to begin construction of access roads and related infrastructure for new well drilling pads.
  • Drill the first new development well.
  • Re-entry, re-completion, and flow testing of two other existing wells (Oza-2 and Oza-4), including connections to existing production facilities.
  • Establishment of a central production facility and infrastructure partnership for the location of a new well to replace the current initial production facility.
  • Completion of the inter-field evacuation pipeline and all related infrastructure.When
  • Drilling up to two additional development wells.

The development plan for the Oza oil field after 2022 includes up to five additional development wells.

Duncan Blount, CEO of Decklar Resources, said: This will allow us to reach the key milestone of starting full-time production and turn Decklar from a developer to an oil producer to generate positive cash flow. Going forward, we will continue development activities at the Asara Mator Emowa oil field, which is promoting similar re-entry, development, and production strategies toward the start of new development and drilling activities at the Oza oil field. Given the supportive oil price environment and the fundamentals of the broader energy market, we look forward to developing this portfolio of high quality and proven undeveloped assets. “

For more information:

Duncan T. Brandt
Chief Executive Officer Phone: +1 305 890 6516

David Harbin
Chief Financial Officer Phone: +1 403 816 3029

Investor Information:

Neither the TSX Venture Exchange nor its regulatory service provider (the term is defined in the TSX Venture Exchange Policy) is responsible for the validity or accuracy of this release.

Attention language

The specific statements and information contained herein make up “Forecast Information” (within the meaning of applicable Canadian securities law). This includes the timing of future commercial production, oil exports or sales of Oza-1 wells. Storage, development plan for 2022. All statements in this news release are forward-looking statements, except for historical facts. Such statements and information (collectively, “Statements on Future Prospects”) relate to future events or our future performance, business prospects or opportunities. It is not certain that a final agreement on this transaction will be entered into, or that the prior conditions contained therein will be satisfactory or completely satisfied by the parties.

All statements other than historical fact statements may be forward-looking statements. Statements that express or include expectations, expectations, beliefs, plans, predictions, objectives, assumptions, or discussions about future events or performances (although not always, often, but often, “seeking,” “expecting,” “planning,” “Continuing”, “estimation”, “expectation”, “potential”, “will”, “project”, “prediction”, “potential”, “targeting”, “intention”, “potential”, “potential” , “Should,” “believe,” and similar expressions) may be “statements of the future,” rather than statements of historical facts. Forward-looking statements include known and unknown risks, uncertainties, and other factors that may cause actual results and events to differ materially from those expected in such forward-looking statements. It will be. We believe that the expectations reflected in these forward-looking statements are reasonable, but there is no guarantee that these expectations are correct and such forward-looking statements are excessive. Should not be trusted by. We have no intention or obligation to update these forward-looking statements, except as required by applicable law. These forward-looking statements include, among other things, fluctuations in oil prices, the consequences of exploration and development activities, uninsured risks, regulatory changes, title defects, availability of materials and equipment, government or other regulations. Includes risks and uncertainties associated with timeliness. Unexpected environmental impact on equipment and processes related to approvals, actual performance of the facility, availability of financing under reasonable terms, availability of third-party service providers, specifications and expectations, and operations. .. Actual results may differ materially from those expressed or implied by such forward-looking statements.

Actual results and future events may differ materially from those expected in such statements, and we do not guarantee that forward-looking statements are accurate. Therefore, readers should not place undue reliance on forward-looking statements. We are obligated to revise or update these forward-looking statements after the date of this document, or to reflect the occurrence of unforeseen future events, except as required by applicable securities law. I shall not be obliged to do so.

CBJ News Maker

Decklar Resources Inc. Signs Crude Oil Processing Agreement, Provides Up-to-date Information on Nigeria’s Oil Export Business, Canadian Business Journal

Source link Decklar Resources Inc. Signs Crude Oil Processing Agreement, Provides Up-to-date Information on Nigeria’s Oil Export Business, Canadian Business Journal

Related Articles

Back to top button