Sonoro Signal E-Newsletter

Issue 3: Sonoro target named to 2017 Wells to Watch list

LG-1 Up-dip well in Indonesia earns a spot on DrillingInfo’s worldwide index of ‘regionally significant prospects’

July 20, 2017

Sonoro Energy is seeking shallow, repeatable success. Its target just got some deep respect.

Sonoro’s Budong Budong LG-1 Up-dip well, in the Indonesian province of West Sulawesi, was recently named to DrillingInfo’s 2017 Wells to Watch list.

The Budong Budong PSC region in West Sulawesi is estimated to have 16 million barrels of prospective recoverable resources.

“This is very gratifying for Sonoro Energy,” says Sonoro’s Chief Executive Officer and Director Richard Wadsworth. “We’ve targeted the Budong Budong lease because the LG-1 Up-dip site is a simple, low-risk appraisal well with shallow drilling targets, great potential and a history of success.”

The worldwide 2017 Wells to Watch list of “regionally significant prospects” was released in late June by DrilingInfo, an industry intelligence service.

“In this report, DrillingInfo experts from around the globe pinpoint 53 of the top wells and exploration drilling programmes to watch through the remainder of 2017,” reads the 2017 Wells to Watch report.

Sonoro (TSX-V: SNV) expects spudding of the the LG-1 Up-dip well to begin in early August, which comes after much planning and work at:

  • obtaining the necessary local engagement and government approvals;
  • securing PT Pontil, a subsidiary of Major Drilling Group International, as its drilling contractor;
  • obtaining its environmental permit to drill up to seven wells in the Budong Budong PSC area; and
  • organizing the transportation of the drilling rig, and all associated equipment and services, to the Budong Budong lease site in late July.

Additionally, Sonoro has identified several other large seismic structures within the Lariang Basin as next-step activities following the drilling of the LG-1 Up-dip well.

“Our aim is to leverage previous success/discoveries, our team’s track record, experience and technology,” says Mr. Wadsworth, “to build a significant and balanced portfolio, starting with near term production, of high-quality oil and gas assets in onshore Indonesia and southeast Asia.”

(DISCLAIMER: Readers are cautioned that certain statements in this article may constitute “forward-looking statements”—which, by their by their nature, are based on current expectations regarding future events that involve a number of assumptions, known and unknown risks, and uncertainties. Actual results, performance or achievements of the Company, or the industry, may vary materially from what is expressed or implied by such forward-looking statements. Therefore, readers should not place undue reliance on forward-looking statements.)

Issue 2: Indonesia's Budong Budong block: Drilling into a promising exploration history

Sonoro focused on previous success where others came, looked and left

June 22, 2017

Others have taken a Veni, Vidi, Verti philosophy . . . which, translated loosely from Latin, means “I came, I saw, I turned around.”

And because of it, their losses could become Sonoro Energy’s gains.

Sonoro (TSX-V: SNV) is fully committed to revisiting the shallow success of oil exploration in Indonesia’s onshore West Sulawesi province, which dates back more than a century.

With an appraisal well drilling program now in motion for its Budong Budong block, following the recent raise of CAD$3.6 million through a non-brokered private placement, Sonoro is focused on successful production in an area where others came, looked . . . and left.

“The Budong Budong region has an intriguing history in terms of oil exploration, dating back to the Doda Oil Company’s arrival back in the 1890s,” says Sonoro Energy’s chief executive officer Richard Wadsworth.

“Frankly, it’s remarkable that regular shallow-well oil production has not taken place in the region to date—and that’s why we’re focusing our efforts on fast-tracking this process.”

In recent days, those fast-tracking efforts include:

In spite of abundant seismic and well data that shows great promise—an unrisked prospective recoverable equivalent of 15.9 million barrels, as a net-mean-case scenario—Sonoro and its wholly owned subsidiary, Stockbridge Oil and Gas, are the first industry players to seriously consider drilling the area’s shallow-surface anticlines.

Among the highlights of the area’s drilling history:

  • Between 1898 and 1905, Holland’s Doda Exploration Company drilled four shallow wells in an area commonly known for its active oil seeps
  • All four of these wells yielded significant oil and gas shows, with several blowouts
  • Notes from these drilling operations remarked: “Sand pump, small drill collar and seven pipes were thrown from the drilling platform” and “For 4 hours, rocks and mud with many oil traces flew out of the borehole, with great force”
  • Through much of the 1930s, BPM (Shell) performed extensive field mapping and identified multiple surface anticlines, two of them with oil seeps (Bula Bae and Madjene)
  • With the Second World War looming, and the Japanese preparing to invade, these areas were never drilled
  • Between 1970 and 1974, Gulf drilled a pair of stratigraphic holes; one of these experienced a gas blowout near the old Doda wells, and was abandoned at a shallow depth
  • BP conducted seismic 2D information in 1974, and drilled one well, with impressive shows throughout, but soon turned its attention to South Sulawesi
  • Tately and Harvest attempted and failed in 2011 to test deeper targets—but its LG-1 well, drilled in the “Doda area,” yielded strong oil and gas shows through the top 750 metres, blew out at one point, and required 22 pounds of mud before the casing could be set

“Given the abundant available data, and the empirical evidence over several decades, we see our Budong Budong appraisal well program as a low-risk, high-return proposition,” says Wadsworth.

“We also believe that success in this region would open up new basins and new opportunities—and finally fulfil the potential that’s been apparent for more than 100 years.”

Issue 1: Going deep for shallow success in Indonesia

With Budong Budong license extended, Sonoro is gearing up for appraisal well program

February 27, 2017

The treasure has been locked away for nearly a century.

The team has decades’ worth of experience in southeast Asia.

The expectation? Revisiting success in Indonesia’s West Sulawesi province—and doing it for the long term.

In mid-January, the Indonesian government gave Stockbridge Oil and Gas, Sonoro Energy’s wholly owned subsidiary, a one-year extension on its Budong Budong drilling license through Jan. 15, 2018.

And with an unrisked prospective recoverable equivalent of 15.9 million barrels, as a net-mean-case scenario, Sonoro is excited about unlocking near-term production in the Budong Budong region—with a one- to two-well appraisal program scheduled for 2017.

“History tells us that Holland’s Doda Oil Company had incredible success in this area back in the early 1900s, after discovering a giant oil seep using primitive technology. Oil and gas continues to leak from wellheads today,” notes Sonoro Energy’s chief executive officer Richard Wadsworth.

“The seismic and LG-1 well data we’ve seen from the area is very promising,” he adds. “We’re focused on, and entirely committed to, repeating that shallow-well success of West Sulawesi through our LG-1 updip well—and fast-tracking the process to regular production.”

Sonoro Energy and Stockbridge Oil and Gas Ltd.’s management team has a wealth of exploration and production experience in southeast Asia, with companies like Shell, ARCO, P.T. Petcon, Pertamina and Total. Multiple members of the team were involved in the exploration of the Palangkaraya block, which was ultimately sold to Conoco-Phillips.

“We believe that the Budong Budong region has potential reserves, and we’re confident that this is a low-risk exploration initiative at shallow drilling targets—with potential for an untested new reservoir,” says Mr. Wadsworth.

Balikpapan’s Pertamina Refinery lies just across the Makassar Strait from Budong Budong, a 280-kilometer trip that takes less than 48 hours.

“With success on the LG-1 updip well, we believe this will open up numerous other prospects in the Budong Budong License and the basin that are well worth pursuing,” says Mr. Wadsworth.