Decklar Announces Completion of Debt Financing
CALGARY, Alta., Sept. 29, 2022 (GLOBE NEWSWIRE) — Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1) (the “Company” or “Decklar”) is pleased to announce the closing of a US$20 million debt financing facility with Shell Western Supply and Trading Limited (“Shell”), a crude oil and petroleum products subsidiary of Shell plc., for the further development of the Oza oil field in Nigeria.
Decklar and its joint venture partner Millenium Oil & Gas Company Limited (“Millenium”) are pleased to announce the signing of a US$20 million debt financing facility with Shell (the “Development Debt”). Development debt has a term of five years.
Upon fulfillment of certain conditions precedent to drawdown of the development debt, the development debt will be disbursed in three tranches based on development drilling activities at the Oza oil field. Development debt proceeds will be used to fund development activities at the Oza oilfield, including re-entry of existing wells, drilling of new wells and related infrastructure. New development wells are expected to have two-zone completions with two oil producing zones using two individual production tubes simultaneously. The full development plan for the Oza oilfield is expected to include the drilling of eight or nine new wells and the re-entry of two existing wells. As previously announced, Millenium’s historical debt has been restructured on terms similar to development debt.
In accordance with the requirements of the development debt, Decklar has signed a facility agreement and an offtake agreement with Shell. The development debt credit agreement includes a hedging program to allow for a put option hedging structure to manage exposure to crude oil price fluctuations. It will be managed by Shell/Decklar/Millenium.
As recently announced, the Oza-1 well will return to production once evacuation begins.
Sanmi Famuyide, CEO of Decklar Resources, said, “We are very pleased to announce the successful execution of the US$20 million debt financing with Shell, which is a significant milestone for the development of the Oza oil field. . Shell’s participation in the debt financing reflects a validation of Decklar’s plans for the full development of the Oza oil field.
For more information:
Managing Director Telephone: +234 703 332 2265
Email: [email protected]
Chief Financial Officer Phone: +1 403 816 3029
Email: [email protected]
Investor Relations: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements made and information contained herein constitute “forward-looking information” (within the meaning of applicable Canadian securities laws), including, but not limited to, statements regarding: the Company’s ability to fulfill all the conditions precedent to the drawing of the three tranches of development debt, the use of development debt proceeds, the ability of the hedging policy to manage exposure to fluctuations in the price of crude oil, the Company’s ability to properly fund its development plans for the Oza oilfield using development debt and cash flow, the start of trucking to a local refinery and oil storage and export facility and the timing of that this, the completion of two new well inflows at the Oza oil field and the timing thereof, the drilling of eight to nine new wells on the Oza oil field and the timing thereof and any new development wells having dual zone completions with two oil producing zones simultaneously utilizing two individual tubing strings. All statements contained in this press release, other than statements of historical fact, are forward-looking statements. These statements and information (collectively, “forward-looking statements”) relate to future events or the Company’s future performance, prospects or business opportunities.
All statements other than statements of historical fact may be forward-looking statements. Any statement that expresses or implies discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, or future events or performance (often, but not always, using words or phrases such that “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting “, “intend”, “could”, “could”, “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 The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given. that such expectations will prove to be correct and such forward-looking statements should not be The Company does not place undue reliance on, and undertakes no obligation to, update such forward-looking statements, except as required by applicable law . These forward-looking statements involve risks and uncertainties related to, among other things, counterparty risk, changes in oil prices, results of exploration and development activities, competition in the oil and gas industry, uninsured risks, risks related to energy transition, 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 against specifications and expectations; and unforeseen environmental impacts on operations. Actual results may differ materially from those expressed or implied by these forward-looking statements.
The Company does not 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. The Company undertakes 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 unforeseen future events, except as may be required under applicable laws. applicable securities.