The agreement entitles San Leon to buy US$7.5mln of loan notes, carrying a 10% interest, and a 15% shareholding in the company.
Investment from San Leon will support Decklar’s programme to enter and test the Oza-1 well as part of the development of the field.
In an operations update, Decklar said that it has completed critical initial work activities, including the removal of tubing from the well, a cement bond was completed, and surface testing facilities are currently being installed.
Testing activities are expected to start early next week.
Subsequently, it is expected that initial oil production test volumes will be exported and sold through existing production facilities and pipelines to the Bonny export terminal.
“The Oza-1 well and new horizontal development well are expected to generate significant production levels and generate cash flow in a short time frame utilizing the existing infrastructure in place,” Decklar said.
“The Oza Oil Field development is planned to then continue with one or two more re-entries on other existing wells and an additional development drilling programme with a potential for eight to ten wells to be drilled to achieve full field development.”