San Leon Energy PLC (AIM:SLE, AQSE:SLE, OTC:SLGYF) relayed an update on oil sales by associate Decklar Petroleum, which operates the Oza field in Nigeria.
Decklar has now completed a 10,000 barrel shipment of crude to a small oil refinery in Edo State, Nigeria, San Leon said in a statement.
An invoice for the sale has been issued and Decklar anticipates payment within 21 days, in accordance with its sales agreement, which also envisages further future deliveries totalling an extra 30,000 barrels of crude.
The price for the further shipment of 30,000 barrels is presently being negotiated, it added, meanwhile, additional talks are taking place for a monthly sales schedule though minimum volumes have yet to be agreed for such an agreement.
San Leon holds an 11% shareholding in Decklar and it has further economic exposure to its associate via US$5.5mln of loan notes.
Earlier this month, the company announced it was in advanced negotiations over a potential sale of its stake in Decklar. The stake is deemed by San Leon as a ‘non-core’ holding.