Decklar Resources Inc.Announces Update to Oza-1 Well

TORONTO, May 27, 2021 (GLOBE NEWSWIRE) – Decklar Resources Inc. (DKL-TSX Venture) (the “Company” or “Decklar”) is pleased to announce an update on the Oza-1 well re-entry operations at the Oza oilfield in Nigeria through the wholly owned subsidiary of the Nigeria-based company, Decklar Petroleum Limited.

Re-entry Oza-1

Decklar continues to make considerable progress on the reentry of the Oza-1 well with the camp and all associated infrastructure fully installed and operational. Major components of the rig’s equipment are transported to the field this week and the rig is expected to be completely relocated, installed and rigged within two weeks. Decklar will then begin operational reentry activities for the Oza-1 well, including the initial work of removing existing tubing, managing a cement bond log and cased hole reservoir logs. Reentry activities will then include testing three oil zones (L2.2, L2.4 and L2.6) independently, then it is expected that a final completion of the double tube chain will be installed and the L2.2 and L2.6 zones put into production after successful tests. The drilling rig is then expected to be skidded onto the same drilling rig as Oza-1 in a new drilling slot and a horizontal development well will be drilled in the L2.4 zone and brought into production. The Oza-1 well and the new horizontal development well are expected to generate significant production levels and cash flow in an abridged timeframe due to the already existing infrastructure in place. Oza development is then expected to continue with one or two additional returns on existing wells and an additional development drilling program with a potential of eight to ten wells drilled for full field development. Additional initial production and centralized processing facilities will be added as needed to allow additional production levels from development activities in the field.

The Oza oil field has significant export and production capacity with processing facilities and infrastructure already in place and operational, which will allow the immediate export and sale of crude oil from the Oza-1 well.

Summary of the Oza oil field

As previously announced, the Oza oil field was previously operated by Shell Petroleum Development Company of Nigeria Ltd. (“Shell”). The field has three wells and a side track drilled between 1959 and 1974. During Shell’s time as the operator, there were two periods of extended production trials from the Oza-1, -2 and -4 wells. However, the field was never linked to an export facility, nor fully developed by Shell and put into commercial production.

In 2003, the Oza oil field was awarded to Millenium Oil and Gas Company Limited (“MillenniumHaving won the field in the 2003 Marginal Fields licensing round. Since Millennium’s acquisition of the Oza oil field, approximately US $ 50 million has been spent on infrastructure in support of a production restart, including an export pipeline to connect production to the Oza oil field to the Trans Niger (TNP) pipeline that goes to Bonny Export Terminal, an Automatic Ownership Transfer Unit (LACT) tax metering system, field flow lines, manifolds and production facilities associated.

The risk management service contract (“RSA”) That Decklar and Millenium entered providing Decklar with the majority share of production and associated cash flow from the Oza oilfield in return for funding and technical assistance to restart commercial production and full development of the field; the terms of the RSA include a preferential reimbursement of the costs of Decklar plus a share of the cash flow thereafter. In exchange, Decklar is entitled to priority recovery of its capital on 80% of the distributable funds. After recovering costs, Decklar’s profit share is based on a sliding scale starting at 80% and decreasing to 40% once cumulative production exceeds 10 million barrels.

Decklar is also pleased to announce that it continues to make good progress in appraisals and negotiations for other proven and undeveloped oil and gas fields in Nigeria which have significant reserves and short production potential. term.

For more information:

Duncan T. Blount
Managing Director Telephone: +1 305 890 6516
Email: [email protected]

David Halpin
VP Finance, Decklar Petroleum 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.

Warning language

Certain statements and information contained herein constitute “forward-looking information” (within the meaning of applicable Canadian securities legislation), including the completion of the remaining portion of the offering. All statements contained in this press release, other than statements of historical fact, are forward-looking statements. These statements and information (together, “forward-looking statements”) relate to future events or the future performance of the Company, business prospects or opportunities.

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”, “want”, “plan”, “predict”, “potential”, “target” , “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 materially from those anticipated in such forward-looking statements. 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 these 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 to, among other things, changes in oil prices, the results of exploration and development activities, uninsured risks, regulatory changes, title defaults, availability of materials and equipment, government news or other regulations. 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 gives 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. 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 to the extent that securities laws applicable require it.

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