- Decklar Resources (DKL) has finalized debt financing arrangements with Shell to develop the Oza oil field
- The company is closing a US$20 million debt finance facility from Shell Western Supply and Trading
- Decklar Resources (DKL) is an oil and gas exploration, and development company mainly focused on low-risk appraisal and development opportunities in the prolific West African region
- Decklar Resources (DKL) is up today, trading at C$0.30 at 11:20 am ET
Decklar Resources (DKL) finalize debt financing arrangements with Shell to develop the Oza oil field.
The company is closing a US$20 million debt finance facility from Shell Western Supply and Trading, a crude oil and petroleum product subsidiary of Shell plc., for the continued development of the Oza oil field in Nigeria. Decklar is working with Millenium Oil & Gas Company on the debt finance facility with Shell to develop Oza for a total of five years.
Upon meeting certain conditions, the development debt will be disbursed in 3 parts based on development drilling activities on the Oza oil field. Proceeds will be used to fund the re-entry of existing wells, drilling of new wells, and related infrastructure. The new development wells are anticipated to have dual-zone completions with two oil-producing zones simultaneously using two individual tubing strings. The full field development plan for Oza is anticipated to include the drilling of 8-9 new wells and the re-entry of 2 existing wells. Millenium’s historical debt has been restructured under similar terms to the development debt.
Requirements of the development debt include Decklar executing a facility agreement and an offtake agreement with Shell. The facility agreement with respect to the development debt includes a hedging program to allow for a put option hedging structure to manage exposure to fluctuations in the price of crude oil. It will be managed by Shell/Decklar/Millenium.
The Oza-1 well will be placed back on production once evacuation commences.
Sanmi Famuyide, CEO of Decklar Resources, commented on the news.
“We are very pleased to announce the successful execution of the US$20 million debt financing with Shell, which is an important milestone for the Oza Oil Field development. The debt financing participation by Shell reflects a validation of Decklar’s plans for the full development of the Oza Oil Field.”
Decklar Resources (DKL) is an oil and gas exploration, and development company mainly focused on low-risk appraisal and development opportunities in the prolific West African region.
Decklar Resources (DKL) is up today, trading at C$0.30 at 11:20 am ET.