WTI (Mar)* $80.61 +81c, Brent (Mar) $86.16 +$1.18, Diff -$5.55 +5c. *WTI Feb expiry

USNG (Feb) $3.27 -4c, UKNG (Feb) 151.0p -9.0p, TTF (Feb) €59.575 -€4.27.

Oil price

It has been an odd week in the oil markets, it will likely end marginally up although data from the USA and China has been mixed but given plenty of gob from those big wigs slumming it at Dav-os to the cost of their voters and shareholders.

Even a poor set of inventory figures from the EIA yesterday was shrugged off with disdain, the market preferring to look at a big call on refined products.

San Leon Energy

San Leon notes the announcement made on 19 January 2023 by Decklar Resources Inc. in Canada.  San Leon has a 11% shareholding in Decklar Petroleum Limited, the local subsidiary of Decklar operating in Nigeria, and has also made a US$5.5 million loan to DPL, via 10% per annum unsecured subordinated loan notes.

Further to the announcement made by the Company on 20 December 2022, San Leon remains in advanced negotiations in respect of the proposed sale of the Company’s non-core investments in DPL, although the completion of this proposed sale will be subject to the purchaser finalising its own funding arrangements.

Part of the text of Decklar’s announcement is set out below:

·      Decklar and its co-venturer Millenium Oil & Gas Company Limited have received the first payment for the sale of crude oil from the Oza Oil Field since recommencement of operations.

·      Decklar and Millenium have now increased production from the Oza Oil Field to a total rate of approximately 1,300 barrels of oil per day (“bopd”) following the restart of production at approximately 900 bopd from the Oza-1 well and new production at approximately 400 bopd following minor repairs to the Oza-4 well.

·      Trucking of oil has continued from the Oza Field to the Edo Refinery and Petrochemicals Company Limited (“ERPC”) in Edo State, Nigeria.

·      Decklar and Millenium have issued another invoice for delivery of 5,000 barrels of crude oil (“bbls”) to ERPC under the recently signed 30,000 bbls crude sale agreement., and initial payment for previous deliveries totaling 10,000 bbls has now been received.

 Decklar Resources Inc. (TSX-V: DKL) (OTCQX: DKLRF) (FSE: A1U1) (the “Company” or “Decklar”) and its co-venturer Millenium are pleased to provide updates regarding oil production and delivery operations at the Oza Oil Field in Nigeria.

Restart of Production from the Oza-4 Well

Decklar and Millenium have recommenced production from the Oza Oil Field at a total production rate of approximately 1,300 bopd. The Oza-1 well is currently producing approximately 900 bopd of 22 API crude oil on a 20/64 inch choke with wellhead pressure of 400 psi and 2.5% BS&W. Following successful minor repairs, the Oza-4 well has been opened and restarted with current production averaging approximately 400 bopd on a 24/64 inch choke at wellhead pressure of 1,300 psi with 0.01% BS&W.

Trucking of Crude Oil to Edo Refinery

Trucking of oil from the Oza Field is ongoing to the ERPC facility in Edo State, Nigeria. Ten trucks are currently in operation and are capable of delivering approximately 2,500 bbls every four days. Additional trucks are expected to be contracted over the next few weeks to increase delivery capacity.

Receipt of Funds for First Oil Sale

Decklar and Millenium have received payment on the first invoice for delivered crude under the 10,000 bbls sale agreement with ERPC. The Company has now issued an invoice for delivery of the first 5,000 bbls as part of the 30,000 bbl sale agreement with ERPC with payment expected in approximately three weeks. With continued production and delivery of crude oil it is expected that regular billing and receipts of sales proceeds will occur.”

Good news here for San Leon as Decklar gets production at the Oza field to ~1,300 b/d following 900 b/d from the Oza-1 well and 400 b/d post repairs at Oza-4. The crude is trucked to the ERPC facility at the rate of 2,500 barrels every four days and will soon be increased. 

San Leon remind us that they are still negotiating the sale of the Company’s non-core investments in DPL, although the completion of this proposed sale will be subject to the purchaser finalising its own funding arrangements.

And finally…

Last night in the Prem the Noisy Neighbours went 0-2 down at half time to Spurs but ended up winning 4-2 rather proving that you get what you pay for.

Tomorrow in what used to be a top of the table clash Chelsea go to Anfield in what is now a 9 v 10  meeting. Elsewhere the Cherries host Forest, the high flying Seagulls go to the Foxes, the Saints host Villa, the Toffees go to the Hammers and the Eagles host the Magpies.

On Sunday Leeds host the Bees, Wolves go to the Emptihad and in a real top of the table clash the Gooners host the Red Devils.

No racing of note due to the icy conditions this weekend but at the Manchester  Arena tomorrow Chris Eubank Jnr takes on Liam Smith. Rugby sees the European Champions Cup with not long to go until the 6 Nations starts.

And have you ever seen a better rally than the one that turned Andy Murray’s fortune around and went on the win his second 5 setter in the Australian Open?