TORONTO, June 09, 2021 (GLOBE NEWSWIRE) – Decklar Resources Inc. (DKL-TSX Venture) (the “Company” or “Decklar”) Announces Completion of Non-Binding Letter of Intent to Purchase All of the Issued and Outstanding Common Shares of Purion Energy Limited (âPurionâ), a Nigerian Entity Entitled to Enter into a Risk Finance Agreement and technical services (âRFTSAâ) with Prime Exploration and Production Limited (âPrimeâ) to participate in the Asaramatoru field in Nigeria, located in OML 11, the same block where Decklar is also currently developing the Oza field.
Decklar is also pleased to announce the appointment of David Halpin as Chief Financial Officer of the Company.
The Asaramatoru field
The Asaramatoru field, operated and 51% owned by Prime and 49% owned by Suffolk Petroleum Limited (“Suffolk”), is located onshore in the southern swamp section of OML 11 in the eastern part of the Delta. Niger, which is one of the largest of the oil producing blocks stretching from the coastal swamp section in the south to the mainland in the north. The Asaramatoru field is located close to the Andoni local government area on mangrove woodland and is approximately 45 km southeast of the oil town of Port Harcourt in Rivers State and about 40 km south of the Oza field. The Bonny Oil Export Terminal and Bonny LNG Plant are located approximately 15 km south of the Asaramatoru field.
The Asaramatoru field was previously operated by Shell Petroleum Development Company of Nigeria Limited (âSPDCâ). The Asaramatoru field was awarded to Prime and Suffolk by the Federal Government of Nigeria in 2004 as part of the first marginal field program. A subsidiary of Prime has been appointed operator of the field.
Two wells were drilled in the Asaramatoru field by SPDC, and both wells encountered oil and gas in several stacked reservoirs. The wells have both been suspended by SPDC as oil and gas discoveries. Available data includes 3D seismic and wireframe logging data.
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Prime and Suffolk returned to the two existing wells and began initial production activities in 2014. The wells produced an average of 2,700 barrels of oil per day for more than three years, with crude production being barged to a offshore installation for storage and export. Both wells have been closed since the end of 2018 due to lower oil prices and logistics related to barge and export activities.
The next steps planned for the development of the Asaramatoru field include the restart of production from the two existing wells, the drilling and completion of five to seven additional wells, the installation of production and export facilities and the construction of flow lines. SPDC’s crude export pipeline to the Bonny terminal has a connection point at the Oloma Flow station, located approximately 10 km from the field.
The full development plan for the field will include the expansion of processing facilities to allow handling and processing of up to 20,000 barrels of crude per day for expected peak production levels.
Letter of Intent between Purion and Decklar
Decklar and Purion have signed a non-binding letter of intent regarding the proposed acquisition by Decklar (the âTransactionâ) of all of the issued and outstanding common shares of Purion (the âPurion Sharesâ). Purion has entered into a separate memorandum of understanding with Prime regarding entering into an RFTSA with Prime regarding the 51% stake that has been allocated to Prime for the Asaramatoru field. Additionally, Decklar is aware that Purion is seeking to enter into a memorandum of understanding with Suffolk to enter into an additional RFTSA regarding Suffolk’s 49% stake in the Asaramatoru field.
The terms of the transaction will be based on the issuance of up to 5,500,000 common shares of Decklar (the âDecklar Sharesâ), in consideration for the acquisition of all of the issued and outstanding Purion shares. If Purion has not entered into an RFTSA in respect of Suffolk’s interest at the time of the completion of the Transaction, the number of Decklar Shares to be issued to Purion shareholders will be 3,750,000. Transaction remain under negotiation, and the Transaction will be structured and definitive agreements concluded as a result of the review and consideration of applicable taxes, securities, company law and other relevant considerations and will be subject to to the mutual agreement of Decklar and Purion. , acting reasonably. The Letter of Intent will terminate with Decklar and Purion having no further obligations to each other under the Agreement upon mutual written agreement of termination or by either party if any final were not concluded until July 15, 2021. The transaction will be subject to customary conditions precedent to completion, including approval by the TSX Venture Exchange.
Appointment of the new CFO
Decklar is pleased to announce the appointment of Mr. David Halpin as Chief Financial Officer of the Company.
Mr. Halpin brings over 25 years of management experience as a CFO and Accountant and consultant to Canadian and international public and private resource companies, including several oil and gas companies based in Nigeria.
David is the former CFO and senior financial advisor to Mart Resources, Inc., a Toronto Stock Exchange listed company that produces petroleum in Nigeria with a maximum market capitalization of over C $ 750 million. He was also a director of a TSXV listed company focused on exploring and developing oil and gas opportunities in Saskatchewan and Alberta and was the founder and CFO of a healthcare software company and insurance listed on the TSXV. Mr. Halpin is also Vice President of Finance of the company’s wholly owned subsidiary, Decklar Petroleum Limited, a position he has held since mid-2020.
He is a Certified Management Accountant (CMA) from the Institute of Management Accountants and holds a B.Sc. in Business Administration from Arizona State University.
Duncan Blount, CEO and Director of Decklar, said:
“Mr. Halpin succeeds Paula Kember, who served the company and the company that came before her for 13 years in a variety of roles, most recently as Chief Financial Officer and Corporate Secretary. We would like to sincerely thank Paula for the important role she has played. “she played to bring the Company to where we are today. Paula has played a fundamental role in the development and evolution of the company, and we wish her the best in all her future endeavors.
Mr. Blount continued, âWe also welcome Mr. Halpin to the management team and look forward to working together to build Decklar Resources into a multi-asset producing oil company.
The Company will continue to engage Ms. Kember as a consultant as needed from time to time and to assist with the transition of duties.
For more information:
Duncan T. Blount
Chairman and CEO Telephone: +1 305 890 6516
Email: [email protected]
Chief Financial Officer Telephone: +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 legislation), including the conclusion of definitive agreements with respect to the transaction and the satisfaction of the conditions precedent. upon completion of the transaction. 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 to the future performance, business prospects or opportunities of the Company. There is no certainty that definitive agreements regarding the Transaction will be made, or that the conditions precedent contained therein will be satisfied on terms satisfactory to the parties or not at all.
All statements other than statements of historical fact may be forward-looking statements. Any statement that expresses or involves discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions or future events or performance (often, but not always, using words or phrases such as that “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect,” may “,” will “,” project “,” predict “,” potential “,” targeting ” , âintendâ, âcouldâ, âcouldâ, âshouldâ, âbelieveâ and similar expressions) are not statements of historical fact and may be âforward-looking statements.â Forward-looking statements involve risk known and unknown, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-looking statements. The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance nce can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The Company does not intend, and assumes no obligation, to update these forward-looking statements, except as required by applicable law. These forward-looking statements involve risks and uncertainties relating, among other things, to variations in oil prices, to the results of exploration and development activities, to uninsured risks, to regulatory changes, to defects in title, to the availability of materials and equipment, at the convenience of government or other regulatory agencies. 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 unanticipated 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. Therefore, readers should not place undue reliance on forward-looking statements. The Company does not assume any 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.