Test upgrade and re-entry to well Oza-1


Decklar Resources Inc. is pleased to announce the following update on the re-entry of the Oza-1 well in the Oza oil field in Nigeria, which is being carried out by the Company’s wholly owned subsidiary based in Nigeria, Decklar Petroleum Limited.

  • The initial flow test of the L2.4 sand resulted in a flow rate of 10.3 million standard cubic feet of natural gas per day (“mmscfpd”).
  • The initial flow test of the L2.2 sand resulted in a flow rate of 1,361 barrels of oil per day (“bopd”).
  • The well is expected to enter commercial production after completion equipment is installed.

Decklar Resources Inc. (DKL-TSX company) (the “Company” or “Decklar”) is pleased to announce the following update on the re-entry of the Oza-1 well in the Oza oil field in Nigeria, which is being conducted by the Company’s wholly owned subsidiary based in Nigeria, Decklar Petroleum Limited.

Following the previously announced successful re-entry of Oza-1 and the results of the L2.6 sand test which produced 2,463 bopd, the Company has tested the remaining two sands, L2.4 and L2.2.

During the initial flow test of the L2.4 sand, the zone was produced in multiple throttling configurations ranging from 16/64 inches to 28/64 inches during the 25-hour test period. The L2.4 sand is the intermediate of the three target zones of the reentry program in the Oza-1 well and has 24 feet of gross hydrocarbon production thickness. The L2.4 sand test produced a flow rate of 10.3 mmscfpd of natural gas of 0.58 specific gravity (“SG”, being air 1.0) at a throttle setting of 28/64 inches and a 2250 psig flow pipe head pressure during the last three hour period of the five hour flow test at this choke setting. In all tests there was zero basic sediment and water (“BS&W”). The SG of 0.58 indicates the potential for significant yield from condensate and other natural gas liquids (“NGL”), which will form part of the Company’s gas marketing strategy. With the regional pipeline infrastructure network five kilometers from the field, the Company is excited about the opportunities the gas zone will present for the joint venture to participate in Nigeria’s gas utilization transformation initiatives.

During the initial flow test of the L2.2 sand, the zone was produced in multiple throttling configurations ranging from 16/64 to 28/64 inches during the initial 46 hour test period. Initial testing resulted in a flow rate of 1,361 bppd of 20 degree API sweet crude oil in a 28/64 inch throttle configuration and a 346 psig flow pipe head pressure during the average rotation period. highest three hours of testing in this choke setting. In all tests there was zero BS&W and an average diesel ratio (“GOR”) below 150 mcf / bbl. The L2.2 sand is the shallowest target zone in the well, with a 20-foot gross hydrocarbon production thickness.

Decklar is evaluating artificial lift strategies such as gas lift to improve well productivity and plans to develop the L2.2 sand by drilling a horizontal well from the Oza-1 well pad drilling slot location immediately. after completing activities in Oza-1 reentry. The horizontal development strategy will be aimed at maximizing reservoir connectivity while optimizing pressure reduction on the sand front, resulting in improved long-term stabilized oil production rates and at the same time time, the ingress of water and gas will be minimized.

The initial completion plan for the proposed Oza-1 well will use a single tubing string completion string to produce from the L2.6 sand and will immediately put the well into commercial production. The termination will be designed with sliding sleeve technology that will also allow production of zones L2.4 and L2.2 in the future.

The Oza oil field has significant export and production capacity through processing facilities and infrastructure already installed and operational, which are expected to allow the immediate export and sale of crude oil from the Oza-1 well.

Duncan Blount, CEO of Decklar Resources, stated: “We are very satisfied with the results of the initial tests of the first three target zones of the re-entry to the Oza-1 well. After such promising well delivery capacity and commercial flow rates, we now look forward to completing the remaining Oza-1 well testing activities as we work to begin commercial production and drill additional development wells. ”

The results of the above tests should be considered preliminary. Readers are cautioned that the test results in this document are not necessarily indicative of long-term performance or ultimate payback.

For more information:

Duncan T. Blount
Executive Director Phone: +1 305 890 6516
Email: dblount@decklarresources.com

David halpin
CFO Phone: +1 403 816 3029
Email: davidhalpin@decklarpetroleum.com

Investor Relations: info@decklarresources.com

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.

Caution language

Certain statements made and the information contained in this document constitute “forward-looking information” (within the meaning of applicable Canadian securities law). All statements in this press release, other than statements of historical fact, are forward-looking statements. Such statements and information (collectively, “forward-looking statements”) relate to future events or the Company’s future performance, business prospects or opportunities.

All statements that are not 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 “seek”, “anticipate”, ” plan, “continue”, “estimate”, “wait,” can “,” will be “,” project “,” predict “,” potential “,” targeting “,” 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 such forward-looking statements are reasonable, but there can be no guarantee that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. The results of the above tests should be considered preliminary. Readers are cautioned that the test results in this document are not necessarily indicative of long-term performance or ultimate payback.The Company does not intend, and does not undertake any obligation, to update these forward-looking statements, except as required by applicable law. These forward-looking statements involve risks and uncertainties related 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 regulations. approvals, actual performance of facilities, availability of financing on reasonable terms, availability of third-party service providers, equipment and processes related to specifications and expectations, and unanticipated environmental impacts on operations. Actual results may differ materially from those expressed or implied in such forward-looking statements.

The Company makes no guarantee that forward-looking statements will 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 undertake any obligation to review or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of unanticipated future events, except as required by applicable securities laws.

Source

Click here to connect with Decklar Resources (TSXV: DKL, OTCQX: DKLRF) Inc. for an investor presentation



Source link

Leave a Comment

x