- The initial flow testing of the L2.6 sand resulted in a stabilized flow rate of 2,463 barrels of oil per day ("bopd").
- Testing of the individual sands identified on well logs will continue for the two remaining target zones, after which the well is expected to be put on commercial production with a dual-tubing string completion.
Decklar Resources Inc. (DKL-TSX Venture) ( the "Company" or "Decklar") is pleased to announce the following update on the Oza-1 well re-entry at the Oza Oil Field in Nigeria, being performed by the Company's wholly owned Nigeria-based subsidiary, Decklar Petroleum Limited.
The Oza-1 well has been re-entered successfully with the old tubing and completion equipment removed, all well maintenance performed, and the deeper zones cemented off to isolate them from the target reservoirs. A new wellhead has been installed, the site prepared, and production testing equipment installed for the re-completion of the target zones in the Oza-1 well.
During the initial flow testing of the L2.6 sand, the zone produced at multiple choke settings ranging from 16/64 inch to 32/64 inch over the 116 hour testing period. The L2.6 sand is the deepest target zone of the re-entry program on the Oza-1 well and has 21 feet of gross hydrocarbon pay thickness. The testing of the L2.6 sand yielded a stabilized flow rate of 2,463 barrels of oil per day ("bopd") of 22 degree API sweet crude oil on a 32/40 inch choke setting and flowing tubing head pressure of 450 psig during the last three hour period of the 22.5 hour flow test at this choke setting. In all tests there was less than 0.05% basic sediment and water ("BS&W") and no gas production.
The foregoing test results should be considered as preliminary. Readers are cautioned that the test results herein are not necessarily indicative of long-term performance or of ultimate recovery.
The perforation and testing of the two other target zones is ongoing and expected to conclude in the coming weeks. The Oza-1 well is expected to then be completed using a dual-tubing completion string to produce from the best two zones being tested and put on commercial production. The Oza Oil Field has significant export and production capacity through processing facilities and infrastructure already in place and operational, which is anticipated to allow for the immediate export and sale of crude oil from the Oza-1 well.
Duncan Blount, CEO of Decklar Resources, stated "We are very pleased with these initial test results from the first of the three target zones of the Oza-1 well re-entry. After such promising well deliverability and commercial flow rates, we now look forward completing the remaining Oza-1 well testing activities and commencing commercial production."
For further information:
Duncan T. Blount
Chief Executive Officer Telephone: +1 305 890 6516
Chief Financial Officer Telephone: +1 403 816 3029
Investor Relations: firstname.lastname@example.org
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). 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. The foregoing test results should be considered as preliminary. Readers are cautioned that the test results herein are not necessarily indicative of long-term performance or of ultimate recovery. 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.