San Leon 'Encouraged' by Performance from its OML 18 Field in Nigeria

Africa and Europe-focused junior oil firm San Leon Energy reported Friday that it has seen an encouraging performance from its OML 18 field in Nigeria.

The firm said that reperforation operations on a well on the field had proved successful, with gross OML 18 production increasing to approximately 61,000 barrels of oil per day. The well has now been temporarily shut in to allow minor production upgrades and additional workover operations and current gross production on the field currently around 53,000 bopd.

San Leon said the reperforation program will continue to be implemented across a number of wells on the OML 18 field in the coming months.

San Leon also reported that wells on its Krakama field are now ready to produce and that production here is expected to come online during the first two months of 2017. The firm also expects production to start on the Buguma field in March 2017.

San Leon also reported that it has been informed by its partner Eroton that compliance with all financial covenants and rations stipulated in their Reserve Bank Lending (RBL) facility agreement have been met.

In a company statement, San Leon CEO Oisin Fanning commented:

“We are encouraged by the performance of the OML 18 field to date, including the approximate doubling of production over what was expected when the RBL was first put in place. We are confident, and fully supportive of Eroton in its attempts to satisfy all the conditions of the RBL facility in order to declare dividends in order for San Leon to receive its first cashflow from OML 18.”