Decklar Resources Inc.: Oza-1 Well Re-Entry Update
- A cement bond log will then be completed to confirm integrity of the cement behind casing, followed by pulling of the 5 ? inch casing that is inside 9 ⅝ inch casing, running cased hole reservoir well logs, and cleaning of the well.
- Perforation operations will then begin, and a testing tubing string will be run with straddle packers to test the three isolated individual zones being tested.
- It is anticipated that initial oil production testing will then commence, with all crude oil test volumes produced being immediately exported and sold through the existing production facilities and pipelines to the Bonny Export Terminal.
- All approvals and permits have been obtained for the well re-entry, testing and completion.
TORONTO, July 15, 2021 - Decklar Resources Inc. (DKL-TSX Venture) (the "Company" or "Decklar") is pleased to announce an update to operations at the Oza-1 well re-entry at the Oza Oil Field in Nigeria, being performed by the Company's wholly-owned Nigeria-based subsidiary, Decklar Petroleum Limited.
Rig On-site at Oza-1 Preparing to Commence Operations
Re-entry operations at the Oza-1 well site are progressing with functional testing and inspection of the rig completed, all approvals granted and the initial work activities of pulling the existing tubing are under way. After the existing tubing has been removed from the wellbore, a cement bond log will be run to confirm the integrity of the cement behind the casing, followed by pulling the 5 ? inch casing that is inside the 9 ⅝ inch casing and running cased hole reservoir logs. When the logging is complete and has been analyzed, the well will be cleaned out and perforation and production testing operations will commence on the three known oil-bearing zones (L2.2, L2.4 and L2.6). Each targeted zone will be production flow tested independently, and all test volumes produced will be exported and sold through the existing production facilities and pipelines. Once testing of all three zones is completed, it is anticipated that a final dual-tubing string completion will be installed, and the L2.2 and L2.6 zones placed into production based upon successful testing.
When the Oza-1 re-entry is complete, the drilling rig is then expected to be skidded on the same drill pad as the Oza-1 well to a new drilling slot and a horizontal development well will be drilled in the L2.4 zone. It is anticipated that this well will then be placed on production upon successful testing and completion. 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. 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 program with a potential for eight to ten wells to be drilled to achieve full field development. Additional early production and central processing facilities will be added as required to accommodate increased production levels from field development activities.
The Company anticipates that operations for the re-entry of the Oza-1 well are on track for initial production testing to commence immediately following perforating and running the testing string. The Oza Oil Field has significant export and production capacity through processing facilities and infrastructure already in place and operational, which will allow for the immediate export and sale of crude oil from the Oza-1 well.
Decklar also continues to pursue and advance evaluations and negotiations for additional proven undeveloped oil and gas fields in Nigeria that have significant reserves and near-term production potential, including the recently announced acquisition in the Asaramatoru oil field.
Duncan Blount, CEO of Decklar, stated "As we progress the Oza-1 re-entry activities and the commencement of production testing, we are at the forefront of transitioning the Company from a developer into a producing oil company. Thanks to the infrastructure already in place, the flow test from the Oza-1 well will go directly into the pipeline to the Bonny Export Terminal to generate near-term cash flow. We look forward to ramping up production as we continue towards full field development at the Oza Field. The cash flow from the Oza Field will support Decklar's strategy of consolidating and re-establishing production of high-margin, proven undeveloped conventional oil fields in Nigeria."
For further information:
Duncan T. Blount
Chief Executive Officer Telephone: +1 305 890 6516
Chief Financial Officer Telephone: +1 403 816 3029
Investor Relations: firstname.lastname@example.org
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in 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). All statements in this news release, other than statements of historical facts, are forward-looking statements. Such statements and information (together, "forward looking statements") relate to future events or the Company's future performance, business prospects or opportunities.
All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "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 materially from those anticipated in such forward-looking statements. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance 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 does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. These forward-looking statements involve risks and uncertainties relating to, among other things, changes in oil prices, results of exploration and development activities, uninsured risks, 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 relative to specifications and expectations and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied by such forward-looking statements.
The Company provides no assurance 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 does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.