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Decklar Resources Inc. (TSX-V: DKL) Term Sheet
- Type of financing: Non-brokered
- Gross proceeds: $4.72 million
- Number of units: 16.87 million
- Price per unit: $0.28
- Closing date: 03/08/2021
- Today's closing price (July 15): $0.89
- Share appreciation: 235%
- Warrants: None
- Net ROI w/ warrants ($100k investment): $235,714
Somehow, despite everything, junior oil investments are still managing to occasionally eke out returns in 2021. Back on March 8, Decklar Resources closed a $4.72 million private placement, selling 16.87 million common shares—without any warrants attached—for 28 cents each. As the financing goes free-trading this week, investors in that deal can enjoy a 235% appreciation from that price.
Proceeds from the deal are being used as the company works to re-enter the Oza-1 well in Nigeria, which Decklar hopes will turn it from an oil explorer to an oil producer.
Shares of the company rocketed following the company's initial update on this re-entry campaign, and haven't declined much since. Time will tell whether the company's strategy of "consolidating and re-establishing production of high-margin, proven undeveloped conventional oil fields in Nigeria" will pay off in the long run.
