Decklar Executes Sale Agreement For 150,000 Barrels Of Crude Oil, Signs Crude Oil Sale Agreement With New Buyer, And Updates Oil Delivery Operations At The Oza Oil Field
- Decklar Resources Inc. (“Decklar”) and its co-venturer Millenium Oil & Gas Company Limited (“Millenium”) have executed a sale and purchase agreement to deliver an additional 150,000 barrels of crude oil (“bbls”) with the Edo Refinery and Petrochemicals Company Limited (“ERPC”) in Edo State, Nigeria.
- Decklar and Millenium have also entered into a new sale and purchase agreement with Duport Midstream Company Limited (“DMCL”) to deliver an initial 5,000 bbls to the Duport refinery in Edo State, Nigeria, followed by a minimum of 2,500 bbls per month thereafter.
- Trucking of crude oil has continued from the Oza Field to the ERPC refinery, and another delivery of 5,000 bbls to ERPC has been completed, for a total of approximately 17,000 bbls delivered under the 30,000 bbls crude sale agreement.
Calgary, Alberta -- Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1) (the “Company” or “Decklar”) and its co-venturer Millenium are pleased to announce execution of additional crude oil sale and purchase agreements and to provide updates regarding crude oil delivery operations at the Oza Oil Field in Nigeria.
Crude Oil Sales and Purchase Agreement for additional 150,000 bbls
Decklar and its co-venturer Millenium have signed a new sale and purchase agreement with ERPC to deliver an additional 150,000 bbls to the Edo Refinery in Edo State, Nigeria. This agreement follows the 30,000 bbls agreement that Decklar and Millenium have been delivering on and extends the arrangement to continue to deliver and sell production from the Oza Oil Field after the 30,000 bbls contract has been fulfilled.
New Crude Oil Sale and Purchaser
Decklar and Millenium have entered into a new sale and purchase agreement with DMCL to deliver an initial 5,000 bbls to the Duport refinery in Edo State, Nigeria, followed by a minimum 2,500 bbls per month thereafter. This agreement expands the customer base for the sale of crude oil from the Oza Oil Field and gives Decklar and Millenium an alternate delivery location for additional volume.
Continued Trucking and Sale of Crude Oil to Edo Refinery
Trucking of oil from the Oza Field has continued to the ERPC facility in Edo State, Nigeria, and delivery of an additional batch of 5,000 bbls has been completed. Total deliveries of approximately 17,000 bbls have been completed to date, with invoices issued for 15,000 bbls. Payment for the first 5,000 bbls invoice has been received, and payment for the subsequent invoices is expected in the next week under the terms of 30,000 bbls sales agreement. Additional deliveries are anticipated to continue on an ongoing basis. The current total available fleet of 20 contracted trucks is expected to consistently deliver approximately 5,000 bbls per week.
With the execution of the additional 150,000 bbls sale and purchase agreement with ERPC and the execution of the new DMCL agreement, Decklar and Millenium plan to secure additional trucks and permits to service the increased sales volumes and allow for the Oza Oil Field to be produced at full capacity from the Oza-1 and Oza-4 wells.
Sanmi Famuyide, CEO of Decklar Resources, said, “We were very pleased to sign the new agreement with ERPC to deliver and sell another 150,000 bbls, and this arrangement extends the relationship between the companies and enables Decklar to continue to produce and deliver substantial volumes of crude oil from the Oza Oil Field. We are also happy to announce the new crude oil sale and purchase agreement with DMCL, which creates a relationship to deliver crude oil from the Oza field to a new customer. Payments for the sale of crude oil from the Oza field continue to be received, and deliveries to ERPC in Edo State are expected to continue on a consistent basis. The additional trucking capacity that has been arranged has created the opportunity to deliver crude oil to DMCL and may lead to other potential contracts.”
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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), including, but not limited to, statements regarding: the future commercial production of the Oza-1 and Oza-4 wells, obtaining and renewing all trucking permits, timing and delivery of production to trucks for offloading at the oil refinery or storage tanks, the timing for payment of crude oil sales, the final execution of necessary agreements to sell additional crude oil, and the maintaining of stable crude oil production. 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. There is no certainty that definitive agreements in respect of the Transaction will be entered into, or that any conditions precedent contained therein will be satisfied on terms satisfactory to the parties or at all.
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.