High Impact Exploration In Iraq
Iraq is a re-emerging exploration basin with tremendous opportunity for world-class undiscovered resources
Sonoro Energy has signed an exploration license agreement (“License Agreement”) with the Governorate of Salah ad Din in the Republic of Iraq granting exclusive exploration rights for asphalt and runny related organics (heavy oil). The License Agreement provides a 5 year exploration period for asphalt (heavy oil) with a subsequent 30 year exploitation term. The license area is exclusive, encompassing the entire Salah ad Din Province, some 24,000 KM2(six million acres).
Sonoro is currently interpreting the initial dataset to generate a contingent resource report to define a probable volume of in-place hydrocarbon. A preliminary prospect inventory and technical work plan in being generated. The initial work plan encompasses an immediate shallow drilling program to establish early reserves and a subsequent seismic acquisition program, which will assist in delineating deeper prospects for subsequent drilling programs.
Sonoro has gained government and Management Committee approval to drill three appraisal wells on the North Salah ad Din structure. The prospect is a prominent anticlinal feature defined by both a surface expression as well as delineated with 2D seismic data. The appraisal program follows up an exploration well drilled in 1935 that was drilled 50-80m down-structure. This well tested asphalt (heavy oil) in the intensely fractured Jeribe limestone formation.
Sonoro is currently planning an extensive exploration program for 2012. This program may comprise additional 2D seismic data acquisition to complement the current historical database as well as several exploration wells. These wells would test several leads and prospects that are currently being high-graded.
The fiscal terms of the Salah ad Din license are amongst the most attractive in the Middle East – North Africa region. The contract terms feature a 50% net take for the licensee as well as 80% cost recovery.