Dekler Announces Final Decision on Debt Financing Agreement with Shell for Oza Oil Field Development, Canadian Business Journal

CALGARY, ALBERTA, SEPTEMBER 29, 2022 (GLOBE NEWSWIRE) — Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1) (“Company” or “Decklar”) announces the closing of a US$20 million debt financing facility from Shell Western Supply and Trading Limited (“Shell”), a crude oil and petroleum products subsidiary of Shell plc., for the continued development of the Oza field in Nigeria. I am happy that I can. .

Decklar and its co-venture, Millenium Oil & Gas Company Limited (“Millenium”) are pleased to announce the execution of a US$20 million debt financing facility (“Development Debt”) with Shell. The term of the development debt is he five years.

Upon satisfaction of certain outstanding conditions preceding the withdrawal of the Development Debt, the Development Debt will be paid in three tranches based on development drilling activity at the Oza field. Proceeds from the development debt will be used to fund Oza field development activities, including re-entry of existing wells, drilling of new wells and related infrastructure. The new development well is expected to complete dual zones with two oil production zones simultaneously using two separate tubing strings. A complete Oza field development plan is expected to include the drilling of eight or nine new wells and the re-entry of two existing wells. As previously announced, the Millennium Past Debt has been restructured on similar terms to the Development Debt.

In accordance with the requirements of the development debt, Decklar entered into a facility agreement and an offtake agreement with Shell. The Development Obligation Facility Agreement contains a hedging program that allows for a put option hedging structure to manage exposure to oil price fluctuations. Managed by Shell/Decklar/Millenium.

As recently announced, the Oza-1 well will be returned to production once evacuation begins.

Sanmi Phamuide, CEO of Deckler Resources, said: Shell’s participation in debt financing reflects the validation of Deckler’s plans for the full development of the Oza field. ”

For more information:
Sanmi Famuide
Chief Executive Officer Phone: +234 703 332 2265
Email: [email protected]

David Halpin
Chief Financial Officer Phone: +1 403 816 3029
Email: [email protected]

Investor Relations: [email protected]

Neither TSX Venture Exchange nor its regulated service providers (as those terms are defined in the TSX Venture Exchange Policy) are responsible for the adequacy or accuracy of this release.

Cautionary word

Certain statements and information contained herein constitute “forward-looking information” (within the meaning of applicable Canadian securities laws). This includes, but is not limited to, statements regarding: the use of development debt, the use of funds from development debt, the ability of our hedging policies to manage our exposure to oil price fluctuations, our ability to use development debt to adequately fund development plans for the Oza field; cash flow, commencement and timing of trucking to local refineries and oil storage and export facilities, completion and timing of two new re-entry wells into the Oza field, Oza field and timing, and2 New Development Well with Completion of Dual Zone with Two Oil Production Zones Using Two Indivs Simultaneously All statements in this news release, other than statements of historical fact, are forward-looking statements. Such statements and information (collectively, “forward-looking statements”) relate to future events or our future performance, business prospects or opportunities.

All statements other than statements of historical fact may be forward-looking statements. All statements (often, but not always, “seek,” “anticipate,” “seek,” “expect,” ” “Plan”, “Continue”, “Estimate”, “Expect”, “Could”, “Will”, “Predict”, “Predict”, “Could”, “Goal” “establishes”, “intends”, “could”, “could”, “should”, “believe” and similar expressions) are forward-looking statements, not statements of historical fact. may be a description of Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results or events to differ materially from those anticipated by the forward-looking statements. I have. Although we believe that the expectations reflected in these forward-looking statements are reasonable, there is no assurance that these expectations will prove correct, and such forward-looking statements are not It should not be overly relied upon. We disclaim any intention or obligation to update these forward-looking statements, except as required by applicable law. These forward-looking statements include, among other things, risks related to counterparty risk, changes in oil prices, results of exploration and development activities, competition in the oil and gas industry, uninsured risk, energy transition risk, regulatory changes and deficiencies. and uncertainties. availability of materials and equipment, timeliness of governmental or other regulatory approvals, actual performance of facilities, availability of financing on reasonable terms, availability, specifications and expectations of third-party service providers; and unforeseen environmental impacts on equipment and processes related to and operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.

We cannot guarantee 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. We undertake no obligation to revise or update these forward-looking statements after the date of this document, or to revise them to reflect the occurrence of unanticipated future events, except as required by applicable securities laws. shall not be obliged to do so.

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