Resource News

  • Decklar and its co-venturer Millenium Oil & Gas Company Limited ("Millenium") have signed a crude handling agreement with Umugini Pipeline Infrastructure Limited ("UPIL"), whereby oil produced at the Oza Field will be trucked to the UPIL crude handling facilities and further transferred to the Shell Petroleum Development Company of Nigeria Limited ("SPDC") JV Forcados Oil Export Terminal via the Umugini Pipeline.
  • A permit from the Nigerian government regulatory authorities to transport the crude oil by truck is in the final stages of approval, and it is anticipated that the first shipments of oil by will be delivered to the UPIL facilities in early April 2022.
  • As previously announced, due to unforeseen downtime, maintenance and other issues with the Shell-operated Trans Niger Pipeline, Decklar has suffered delays in establishing crude export activities and commercial production from the Oza-1 well.
  • A second alternative delivery strategy incorporating barging oil from the Oza field to an offshore floating storage facility is also being pursued and would allow for higher shipping volumes once in place. Negotiations with local firms are in advanced stages to secure exports through barging oil to an offshore floating storage and offloading facility.

Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DLKRF) (FSE: A1U1) ( the "Company" or "Decklar") is pleased to announce the signing of a Crude Handling Agreement ("CHA") between the Company's wholly-owned subsidiary Decklar Petroleum Limited ("DPL"), its co-venturer Millenium and UPIL to deliver oil produced at the Oza Field to the UPIL crude handling facilities for injection into the Umugini Pipeline for ultimate delivery to the SPDC JV Forcados Oil Export Terminal for export and sale of Oza crude oil production.

Oza Field Oil Export Operations – Trucking and Barging

Decklar has been pursuing logistics and export activities and made progress on several options, including:

  • Completion and signing of the CHA between DPL, Millenium, and UPIL to deliver oil produced at the Oza Field to the UPIL crude handling facilities for injection into the Umugini Pipeline that will transport the crude oil to the SPDC JV Forcados Oil Terminal for export and sale;
  • A permit from the Nigerian regulatory authority to transport the crude oil by truck is in the final stages of approval. It is anticipated that the first shipments of oil to the UPIL export facilities will commence in early April 2022;
  • The next phase, and the most likely mid- to long-term solution for an alternate export option is barging oil directly from storage facilities at the Oza Field along the Imo River to a floating storage and offloading ("FSO") facility located offshore in shallow waters off the Bonny River; and
  • Options and logistics to transport oil by barge from the Oza Field to an offshore floating storage facility are currently at advanced stages of negotiations. Shipping and exporting the Oza crude oil using the barge and FSO system could enable higher crude oil volumes per shipment and greater transportation and cost efficiency.

In terms of operations, Decklar has successfully finalized the re-entry, re-completion, and flow testing of the Oza-1 well, as detailed in the press release dated November 5, 2021. Crude oil storage tanks on site now hold approximately 22,000 barrels of oil, awaiting export and sale. Once Oza-1 is brought onto commercial production, the Company expects a stabilized flow rate of between 1,200 – 1,500 barrels of oil per day (" bopd ").

As previously described, Decklar and Millenium had initially planned to utilize the Shell-operated Trans Niger Pipeline (" TNP ") to the Bonny Export Terminal; however, the link to the TNP between Isimiri, where Oza crude would enter the Shell operated pipeline network, and the TNP tie-in at Owaza, has been down for maintenance with an uncertain timeline to restart operations.

As previously announced, 2022 development plans for the Oza Field include:

  • Currently in advanced stages of finalizing arrangements with local communities and contractors to begin construction of the access road and associated infrastructure for a new oil well drilling pad;
  • Drilling the first new development well;
  • Re-entry, re-completion, and flow testing of the other two existing wells (Oza-2 and Oza-4), including tie-in to existing production facilities;
  • Installation of a Central Production Facility and infrastructure tie-ins for new well locations to replace the current Early Production Facility;
  • Completion of an inter-field evacuation pipeline and all related infrastructure; and
  • Drilling of up to two additional development wells.

Development plans for the Oza Field beyond 2022 include up to five additional development wells.

Duncan Blount, CEO of Decklar Resources, said, "We are extremely pleased to announce that we have finalized a crude handling agreement, securing alternative transportation and crude export facilities for oil production from the Oza Field. This will now allow us to achieve a significant milestone of commencing full-time production, transforming Decklar from a developer into an oil producer generating positive cash flow. Now, we will work towards starting new development drilling activities at the Oza Field, as well as continuing progress on development activities at the Asaramatoru and Emohua Fields, where we are pursuing similar re-entry, development, and production strategies. Given the supportive oil price environment and broader energy market fundamentals, we look forward to developing this portfolio of high-quality, proven undeveloped assets."

For further information:

Duncan T. Blount
Chief Executive Officer Telephone: +1 305 890 6516
Email: dblount@decklarresources.com

David Halpin
Chief Financial Officer Telephone: +1 403 816 3029
Email: david.halpin@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 the future commercial production of the Oza-1 well, the timing for export or sale of barrels of oil being held in storage, the development plans for 2022. 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.


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Ovintiv to Accelerate Doubling of Shareholder Returns; Announces Agreements to sell Portions of its Uinta and Bakken Assets for Approximately $250 Million

Ovintiv Inc. (NYSE: OVV) (TSX: OVV) today announced it has reached agreements with two counterparties to sell portions of its assets located in the Uinta and Bakken Basins for total proceeds of approximately $250 million .

Ovintiv to Accelerate Doubling of Shareholder Returns; Announces Agreements to sell Portions of its Uinta and Bakken Assets for Approximately $250 Million (CNW Group/Ovintiv Inc.)

As a result of these agreements and continued strong financial and operational results, Ovintiv has elected to accelerate the doubling of its cash returns to shareholders. Starting immediately for the third quarter, Ovintiv will increase its returns to shareholders to 50% of the previous quarter's Non-GAAP Free Cash Flow after base dividends. Previously the company had planned to increase cash returns to the 50% level starting October 1 st . Cash returns in the third quarter are anticipated to be delivered through share buybacks.

"These transactions continue our track record of portfolio optimization, and this means we will double our cash returns to shareholders starting now," said Ovintiv CEO, Brendan McCracken . "This enables our shareholders to directly benefit from these non-core asset sales and our continuing strong performance."

The Uinta Basin assets being sold are mature waterflood assets with Operating Expenses of approximately $35.00 per BOE. The assets include approximately 3,000 gross vertical wells. Post the transaction, Ovintiv will retain approximately 130,000 largely contiguous net acres in the horizontal oil-rich shale portion of the play.

The Bakken assets include approximately 88 wells, located mainly in Richland County, Montana , approximately 30 miles from Ovintiv's primary Bakken position.

As of April 2022 , the combined volumes from the assets being sold totaled approximately 5.0 thousand barrels of oil equivalent per day (MBOE/d), including 4.9 thousand barrels per day (Mbbls/d) of oil and condensate.

The agreements are subject to ordinary closing conditions, regulatory approvals and other adjustments and are expected to close in the third quarter. The effective date of both sales is April 1 st , 2022. Total proceeds received are subject to customary closing adjustments. Ovintiv plans to update its 2022 production and Total Cost guidance to reflect the impact of the asset sales with its second quarter results. 2022 capital guidance will remain unchanged.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS – This news release contains forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  All statements, except for statements of historical fact, that relate to the anticipated future activities, plans, strategies, objectives or expectations of Ovintiv are forward-looking statements.  Readers are cautioned against unduly relying on forward-looking statements which, by their nature, involve numerous assumptions and are subject to both known and unknown risks and uncertainties (many of which are beyond our control) that may cause such statements not to occur, or actual results to differ materially and/or adversely from those expressed or implied.  Readers are encouraged to review the assumptions, risks and uncertainties impacting Ovintiv's business as described in Item 1A. Risk Factors of Ovintiv's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q; and the other assumptions, risks and uncertainties described from time to time in Ovintiv's periodic filings with the SEC or Canadian securities regulators.

Although Ovintiv believes the expectations represented by its forward-looking statements are reasonable based on the information available to it as of the date such statements are made, forward-looking statements are only predictions and statements of our current beliefs and there can be no assurance that such expectations will prove to be correct.  All forward-looking statements contained in this news release are made as of the date of this news release and, except as required by law, Ovintiv undertakes no obligation to update publicly or revise any forward-looking statements.

NOTE 1: Non-GAAP measures

Certain measures in this news release do not have any standardized meaning as prescribed by U.S. GAAP and, therefore, are considered non-GAAP measures. These measures may not be comparable to similar measures presented by other companies and should not be viewed as a substitute for measures reported under U.S. GAAP. These measures are commonly used in the oil and gas industry and/or by Ovintiv to provide shareholders and potential investors with additional information regarding the Company's liquidity and its ability to generate funds to finance its operations. For additional information regarding non-GAAP measures, see the Company's website. This news release contains references to non-GAAP measures as follows:

Non-GAAP Cash Flow is a non-GAAP measure defined as cash from (used in) operating activities excluding net change in other assets and liabilities, net change in non-cash working capital and current tax on sale of assets. Non-GAAP Free Cash Flow is a non-GAAP measure defined as Non-GAAP Cash Flow in excess of capital expenditures, excluding net acquisitions and divestitures.

Total Costs is a non-GAAP measure which includes the summation of production, mineral and other taxes, upstream transportation and processing expense, upstream operating expense and administrative expense, excluding the impact of long-term incentive, restructuring and legal costs, and current expected credit losses. It is calculated as total operating expenses excluding non-upstream operating costs and non-cash items which include operating expenses from the Market Optimization and Corporate and Other segments, depreciation, depletion and amortization, impairments, accretion of asset retirement obligation, long-term incentive, restructuring and legal costs, and current expected credit losses. When presented on a per BOE basis, Total Costs is divided by production volumes. Management believes this measure is useful to the Company and its investors as a measure of operational efficiency across periods.

Further information on Ovintiv Inc. is available on the Company's website, www.ovintiv.com , or by contacting:

Investor contact:

(888) 525-0304

Media contact:

(403) 645-2252

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/ovintiv-to-accelerate-doubling-of-shareholder-returns-announces-agreements-to-sell-portions-of-its-uinta-and-bakken-assets-for-approximately-250-million-301581230.html

SOURCE Ovintiv Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/July2022/06/c4559.html

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Suncor Energy to Hold Oil Sands Operations Presentation

Suncor (TSX: SU) (NYSE: SU) will hold an Oil Sands Operations presentation on July 13, 2022 from 7:00 a.m. to 10:00 a.m. MT (9:00 a.m. to 12:00 p.m. ET).

The presentation will focus on the company's oil sands operations and providing updates on production and operational actions and plans to ensure safe and reliable performance, with presenters:

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ALTAGAS ADVANCES GLOBAL EXPORTS STRATEGY THROUGH ACQUISITION OF REMAINING PETROGAS STAKE

Acquisition Advances Global Exports Strategy and Focus on Connecting Customers and Markets while Reducing Asian Carbon Intensity; Expected to be Immediately Accretive to Earnings Per Share

AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) is pleased to announce the purchase of 25.97% equity ownership of Petrogas Energy Corp. ("Petrogas") from Idemitsu Canada Corporation, a wholly owned subsidiary of Idemitsu Kosan Co., Ltd. ("Idemitsu"), for total cash considerations of C$285 million . The closing and effective date of the transaction is July 5, 2022 with AltaGas now owning 100% of Petrogas.

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PrairieSky Royalty Announces Conference Call for Q2 2022 Results

PrairieSky will release its Q2 2022 results on Monday, July 18, 2022 after markets close. The news release detailing PrairieSky's Q2 2022 results will provide operating and financial information. Financial statements along with management's discussion and analysis will be available on PrairieSky's website at www.prairiesky.com and on SEDAR at www.sedar.com .

A conference call to discuss the results will be held for the investment community on Tuesday, July 19, 2022 beginning at 6:30 am MT (8:30 am ET). To participate in the conference call, you are asked to register at the link provided below. Details regarding the call will be provided to you upon registration.

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Major Energy Projects to Watch in Australia in 2022

With increasing needs for energy, the generation and use of energy is one of the most important cornerstones in any economy or civilization today. Australia is investing hundreds of billions of dollars into major energy projects — investments that will supply the energy for a brighter future.

Coal features prominently in the Australian economy and in the energy sector in particular. It is the second-largest export in Australia, outdone only by iron ore. Natural gas also makes the list at number four.

The energy industry in Australia produces 2.4 percent of the world's energy. Of the energy generated in the country, three-quarters of it is exported — AU$80 billion dollars' worth. Naturally, given the prevalence of coal in its economy, Australia's energy consumption largely relies on coal.

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ALTAGAS TO ISSUE SECOND QUARTER 2022 RESULTS

AltaGas Ltd. ("AltaGas" or the "Company") (TSX: ALA) will release its 2022 second quarter financial results on Thursday, July 28, 2022 before markets open. A conference call and webcast will be held the same day to discuss the financial results and other corporate developments.

Time: 8:00 a.m. MT ( 10:00 a.m. ET )
Dial-in:              1-416-764-8659 or toll free at 1-888-664-6392
Webcast: https://www.altagas.ca/invest/events-and-presentations

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