Decklar Resources Inc.: Oza Field Update: Production, Regulatory Approvals, and Development Plans

24.01.2025  |  The Newswire

Decklar Resources Inc. (TSX-V: DKL) (OTC: DKLRF) (FSE: A1U1) ("Decklar or the "Company") is pleased to provide an update on production, financial filings, regulatory milestones, and development activities at the Oza Oil Field, located in Nigeria.

• Ongoing Production at Oza-1: The Oza-1 well continues to produce at a steady net rate of c.230 barrels of oil per day (bopd).

• Crude Oil Evacuation and Sales: Decklar and its co-venturer in the Oza Field Millenium Oil & Gas Company Limited ("Millenium") injected over 80,000 barrels of crude oil into the Trans Niger Pipeline ("TNP") for transport to the Bonny Export Terminal in 2024. The six-month average losses were approximately 13% and improved to around 10% in the last three-month, indicating reduced losses and greater system efficiency for our crude oil lifted by Shell Western Supply and Trading Limited ("Shell"). In addition to sales to Shell, we delivered approximately 29,900 barrels of crude to the Edo refinery in 2024, confirming the effectiveness of Decklar's alternative crude oil trucking evacuation strategy.

• Oza-4 Recompletion and Reservoir Insights: Decklar and Millenium are advancing the recompletion activities at the Oza-4 Well. Reservoir Saturation Tool ("RST") logging conducted by SLB (formerly Schlumberger) was completed in December 2024 and has provided critical insights into hydrocarbon saturation across the 6,450 - 9,250 feet interval of the Oza-4 well. The results indicate that the L2600, L2700, L7000 and M300 zones contain 40%, 45%, 60% and 25% oil saturations, respectively, above the producible oil-water contact ("POWC"). Work is underway to execute a recompletion zone change from the M5000 zone to the L7000 zone, targeting approximately 19 feet of oil-saturated reservoir in the L7000 zone.

Oza Field Development and Expansion Plans

Decklar, in partnership with its strategic partner Onyxx Resource Development Limited ("Onyxx") and Millenium, are advancing a phased development strategy on the Oza Field.

The recompletion of the Oza-4 well marks a pivotal milestone. Following recent approval from the Nigerian Upstream Petroleum Regulatory Commission ("NUPRC"), and the concluded RST logging operation, processing and evaluation by SLB, subsequent zone change to the L7000 zone are scheduled for completion early in Q1, 2025. The L7000 zone, with contingent resources of approximately 1.6 million barrels, assigned based on behind-the-pipe accumulations in existing Oza wells, is projected to deliver a projected incremental output of around 700-800 barrels oil per day (bopd) once operational.

Subsequent to the Oza-4 recompletion, the Oza-2 well will undergo sidetracking to access three or four proven reservoirs. This will include the installation of a dual-string tubing production system, further enhancing production efficiency and rates. Two additional wells are planned to further unlock the potential of the Oza Field.

Reserves and Financial Updates

Decklar's 2023 financial statement audit by MNP is nearing completion, paving the way for the filing and release of Q1, Q2, and Q3 2024 financial statements and other required reports with regulatory bodies. Alongside the audit, McDaniel & Associates are finalizing the 2023 reserves report for the Oza Field, which will also be released and filed with regulatory bodies.

Sanmi Famuyide, CEO of Decklar Resources, commented:

"With steady production from Oza-1, enhanced crude evacuation systems working effectively, and our focused recompletion work at Oza-4 followed by the sidetrack on the Oza-2 well, Decklar is poised for transformative growth in 2025. Collaborating with Millenium and Onyxx and progressing on the Oza Field development plans demonstrate our commitment to unlocking the field's full potential"

For further details, visit Decklar's website at www.decklarresources.com or refer to the Company's filings on SEDAR+ at www.sedarplus.ca.

For Further Information:

Sanmi Famuyide

Chief Executive Officer

Phone: +234 703 332 2265

Email: sanmi@decklarresources.com

Investor Relations: info@decklarresources.com

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.

Cautionary Language

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: disclosure regarding possible events, that are based on assumptions about future economic conditions and courses of action, obtaining necessary approvals from regulatory authorities, availability of services and personnel necessary to complete required tasks in order to fulfill regulatory requirements in a timely manner, permits and agreements to allow access and production into pipelines and deliveries of crude oil by truck, the timing for payment of crude oil sales, the final execution of necessary agreements to sell additional crude oil, the maintaining of stable crude oil production, the ability to transport crude oil by pipeline or truck, the continued access to functioning pipelines and the availability of export vessels; and projected or estimated production levels, including anticipated increases from planned development activities . 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, particularly with respect to production volumes or anticipated productions increases which may differ due to unforeseen technical, operational, or regulatory challenges. 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.