Decklar today reported a private placement of just over C$4mln, which in February, and will allow it to immediately start work to re-enter the Oza-1 well, at the Oza oil field in Nigeria.
The programme will restart production at the Oza field.
San Leon noted that the previously announced debt funding arrangements, of which it is a part, are now in the final stages of being completed.
San Leon noted that definitive loan documents for the debt funding are nearing conclusion with the Nigerian bank, the US$7.5mln remains in escrow, and will be released in the near future.
“The funds proposed to be used from San Leon on Oza are now expected to be used on the drilling of the new well on the Oza structure,” the company said in a statement.
“The additional investment outlined by Decklar Resources is not expected by San Leon to have a material effect on San Leon’s investment risk or returns.”
Decklar also reported that civil works necessary for the Oza-1 programme had been completed and a drill rig, located nearby, has been contracted and will be mobilised. At the same time, it noted that an export pipeline is already in place along with other infrastructure. It means that oil from early production can be delivered immediately and sold on an expedited basis.