Sonoro Energy announces closing of WCSB farm-in agreement

CALGARY, Canada (June 1, 2023)—Sonoro Energy Ltd. (“Sonoro” or the “Company”) (TSXV: SNV.H) is pleased to report that it has completed the previously announced Western Canadian Sedimentary Basin (“WCSB”) Farm-In Agreement (the “Agreement”), with an arms-length third party, building the first step of the Company’s strategy to build a solid base of production and cash flow in the WCSB. 

Under the terms of the Agreement, Sonoro will be the operator and earn a 70% working interest in a proven Waseca channel heavy oil resource fairway.  In consideration for acquiring the 70% working interest in this 1,840-acre contiguous land block (the “Asset”), Sonoro has committed to fund up to CAD$5 million dollars (on a gross basis) and drill up to 5 wells (the “Carry”) with the first well scheduled to spud no later than September 30, 2023. 

Upon completion of the Carry, Sonoro will earn a 70% working interest in the Asset which contains numerous follow up drilling locations given the pervasiveness of the channel sands.  After the Carry, further development will be at a 70%/30% working interest split between Sonoro and the counterparty, an Operating Agreement has also been executed between the parties which govern the joint operating procedures.

After the final release from the security holder, expected by June 15, 2023, of the counterparty and Sonoro proving it can fund an initial minimum of CAD$2 million by Jul 31, 2023, the Farm-In Agreement will be deemed closed.

This Asset directly offsets an established field which is currently producing over 1,850 bbl/d; having recovered 11 million barrels to date within the same Waseca channel trend. With our team’s heavy oil experience and established cold heavy oil production systems (“CHOPs”) which are proven in this area, Sonoro believes it can drill low risk, low-cost wells and bring on production quickly with area vertical CHOPs type wells IP90 rates of between 60-90 bbl/d. 

A typical newly drilled, completed and equipped heavy oil well is expected to cost less than CAD$750,000 each with payouts estimated to be less than 1 year under prevailing oil prices and heavy oil differentials.  Sonoro has identified the potential for 30 wells to be drilled on 40 acre spacing. 

Furthermore, given the average 17 meters of net pay within this Waseca channel, there is further upside to down space to 20 acre spacing.  The Asset will produce heavy oil which is receiving favorable differentials due to various market conditions and is expected to remain as such with new egress and refining options being made available, in combination with lower-than-average operational costs, the Company expects robust netbacks for the Asset. 

The Company is also in the process of commissioning a third-party resource report for the Asset that would be NI 51-101 compliant.

Read or download the full news release in PDF format.

Sonoro Energy Inc. Closes Financing

CALGARY, Alberta (May 25, 2023) — Sonoro Energy Ltd. (“Sonoro” or the “Company”) (TSXV:SNV.H) is pleased to announce that the Company has completed and closed its previously announced non-brokered private placement of common share/warrant unit financing for CAD$500,000, the maximum permitted under NEX regulations.

Each unit consists of one $0.015 common share (a “Common Share”) and one common share purchase warrant (a “Warrant”) of the Company, where each whole Warrant entitles the holder to purchase one Common Share within 12 months at a price of $0.05 per Common Share. A total of up to 33.33 million units will be issued for total proceeds of $500,000. The securities issued in connection with the Offering will be subject to a four month and one day hold period from the date of issuance of such securities.

The Company intends to use the proceeds for funding due diligence, legal and consulting costs and general working capital purposes. Management and Insiders will be subscribing for a portion of the private placement.

Sonoro also announces that it has extended the term of its 5,157,921 warrants priced at 7 and 7.5 cents currently expiring May 26, 2023 and 7,000,000 10 cent warrants currently expiring May 31, 2023. Both tranches of warrants will be extended for one year. The extension is subject to final approval of the TSXV. The Company has also made an application to the TSXV to graduate back to the TSXV.

Sonoro is in the final stages of completing the agreements for the Western Canadian Sedimentary Basin oil and gas project previously announced in a May 1, 2023 press release. If completed, Sonoro will provide further details at this time.

SONORO ENERGY PROVIDES AN UPDATE, STRATEGIC OUTLOOK AND FINANCING

CALGARY, Alberta (May 1, 2023)—Sonoro Energy Ltd. (“Sonoro” or the “Company”) (TSXV: SNV.H) is in the process of developing a new strategy and action plan to re-engage the Company’s operations that would allow it to advance back to the TSXV regular board. The Company believes it to be beneficial to advise current and future shareholders with an update on this strategy and recent activities.

Our strategy will be to focus on building a diversified portfolio of oil and gas resources through the evaluation, acquisition and development of proven oil and gas resources. Assessment of both domestic Canada and International opportunities is being pursued. Our current focus includes the assessment of opportunities in the Western Canadian Sedimentary Basin (“WCSB”) where we believe we can build a solid base of production and cashflow which can then be leveraged to qualify for International transformational opportunities. Furthermore, we will only venture where we have the experience and team to manage the technical and commercial risks.

The Company has executed a non-binding Letter of Intent (“LOI”), with an arm’s length counterparty, subject to further due diligence, environmental and title review, definitive and closing agreements amongst other conditions for an exciting opportunity in the WCSB, where a proven heavy oil resource fairway and well productivity is well defined. In addition to this, the direct offsetting operator is currently producing ~1,850 bbl/d and has recovered to date 11 million barrels. The LOI involves farming into a 1,840 acre block, where 3D seismic is also available, with the potential of over 30 identified vertical drillable locations given the pervasiveness of the sands. Wells in the same established trend show area type productivity curves estimated IP (Initial Production) rates of 60-90 bbl/d. With our team’s heavy oil experience on cold heavy oil production systems and mechanism (CHOPs) which are proven in the area, we can drill low risk, low cost wells and bring on production quickly.  Sonoro has proposed a 5 well farm-in, carrying the drilling, case and completion costs of the counterparty, to earn a 70% working interest in the farm-in lands and after which the parties will participate in future development at a 70%/30% working interest split between Sonoro and the counterparty. The LOI contains a period of exclusivity which provides Sonoro the ability to satisfy customary conditions for this project.  Once conditions and due diligence are finalized and a Definitive Agreement is signed, the Company will release further information.  

Further to the above opportunities the Company is reviewing a number of opportunities in MENA, South-East Asia and South-East Europe where energy transportation/corridors to Europe are well established. Establishing a solid resource base, production and cashflow as outlined above will improve our chances of capturing these international opportunities.

The Company cannot provide any assurances that it will be able to close any of the opportunities described above.

The Company further announces its intention to complete a non-brokered private placement common share/warrant unit financing to support ongoing activities as described above. Each unit consists of one $0.015 common share (a “Common Share”) and one common share purchase warrant (a “Warrant”) of the Company, where each whole Warrant entitles the holder to purchase one Common Share within 12 months at a price of $0.05 per Common Share. A total of up to 33.33 million units are expected to be issued for total proceeds of up to $500,000. The securities issued in connection with the Offering will be subject to a four month and one day hold period from the date of issuance of such securities.

The Company intends to use the proceeds for funding due diligence, legal and consulting costs and general working capital purposes. Management and Insiders will be subscribing for a portion of the private placement. Any current shareholders or interested parties in the financing are encouraged to contact the Company.

As previously press released, we are exiting the Selat Panjang project due to partner frustration over the past 3-4 years. We have pursued many action plans to continue with the project including government assistance in correcting our partners actions. Documentation is currently in place to release all of our financial obligations currently on our balance sheet as it relates to the project and a clean break is anticipated.