San Leon Energy PLC (LON;SLE) said a drilling rig has been contracted for the Oza-1 re-entry well in Nigeria.
Canadian group Decklar Resources is the operator and said yesterday that mobilisation of the rig is anticipated to commence next week.
Long lead equipment items required to test and complete the Oza-1 well re-entry have been ordered and service contractors have been sourced and secured, added the statement.
Oza-1 represents the start of an aggressive field development at Oza, Decklar said, adding that it will drill additional development wells after analysis of the re-entry and horizontal wells at the Oza-1 location.
As part of a deal struck in September, San Leon will invest in US$7.5mln of loan notes issued by Decklar Petroleum, a subsidiary of Asian Mineral Resources (CVE:ASN), and roughly US$4,600 for a 15% stake in Decklar.