Oza-1 Well Re-Entry Update

• The drilling rig and related equipment have been fully mobilized to the Oza-1 well site, and the rig is in the final set up and commissioning phase in preparation for the Oza-1 well re-entry activities.
  
• Initial operations will include functional testing of the rig, pulling existing tubing out of the well, and running a cement bond log to confirm integrity of the cement behind casing.
• These operations will be followed by pulling of 5 ½ inch casing that is inside 9 ⅝ inch casing, running cased hole reservoir well logs, and cleaning of the well.
• Perforation operations will then begin with the lowest zone of interest (L2.6) and then running a testing tubing string with straddle packers to test the isolated L2.6 zone.
• It is anticipated that initial oil production testing will then commence, with all crude oil test volumes produced being immediately exported and sold through the existing production facilities and pipelines to the Bonny Export Terminal.
• Production testing and oil exports are anticipated to commence by mid-July 2021.

TORONTO, June 17, 2021 (GLOBE NEWSWIRE) -- Decklar Resources Inc. (DKL-TSX Venture) (the “Company” or “Decklar”) is pleased to announce an update to operations at 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.

Rig On-site at Oza-1 Preparing to Commence Operations

Decklar has made significant progress in preparation for the Oza-1 well re-entry with the arrival of the drilling rig, camp, and all associated equipment at the site. The drilling rig has been installed and is in the final rigging up stage, and initial operations on the Oza-1 well re-entry are anticipated to begin shortly, starting with functional testing of the rig and then initial work activities of pulling the existing tubing and running a cement bond log to confirm the integrity of the cement behind the casing. This will be followed by pulling the 5 ½ inch casing that is inside the 9 ⅝ inch casing and running cased hole reservoir logs. Once the logging is complete and has been analyzed, the well will be cleaned out and perforation and production testing operations will be performed on the three known oil-bearing zones (L2.2, L2.4 and L2.6) beginning with the lowest zone (the L2.6 zone). Each zone will be production flow tested independently, and all test volumes produced will be exported and sold through the existing production facilities and pipelines. Once testing of all three zones is completed, it is anticipated that a final dual-tubing string completion will be installed, and the L2.2 and L2.6 zones placed into production based upon successful testing.

The drilling rig is then expected to be skidded on the same drill pad as Oza-1 to a new drilling slot and a horizontal development well will be drilled in the L2.4 zone and placed on production upon successful testing. The Oza-1 well and new horizontal development well are anticipated to generate significant production levels and cash flow in a short time frame due to the existing infrastructure in place. The Oza Oil Field development is planned to then continue with one or two more re-entries on other existing wells and additional development drilling program with a potential of eight to ten wells being drilled to achieve full field development. Additional early production and central processing facilities will be added as required to accommodate additional production levels from field development activities.

The Company anticipates that operations for the re-entry of the Oza-1 well are on track for initial production testing to commence by approximately mid-July. The Oza Oil Field has significant export and production capacity through processing facilities and infrastructure already in place and operational, which will allow for the immediate export and sale of crude oil from the Oza-1 well.

Decklar also continues to pursue and advance evaluations and negotiations for additional proven undeveloped oil and gas fields in Nigeria that have significant reserves and near-term production potential, including the recently announced Letter of Intent to acquire rights in the Asaramatoru oil field.

Duncan Blount, CEO of Decklar, stated “This is a significant milestone for the Company as we transition from a developer into a producing oil company. Thanks to the infrastructure already in place, the flow test from the Oza-1 will go directly into the pipeline to the Bonny Export Terminal to generate attractive cash flow. We look forward to ramping up production as we continue to progress full-field development at the Oza Field. The cash flow from this field will support Decklar’s strategy of consolidating and re-establishing production at this and other similar high-margin proven undeveloped conventional oil fields in Nigeria.”

For further information:

Duncan T. Blount
Chief Executive Officer Telephone: +1 305 890 6516
Email: [email protected]

David Halpin
Chief Financial Officer Telephone: +1 403 816 3029
Email:[email protected]

Investor Relations: [email protected]

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). 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 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.