November 8, 2016 - 4:40 PM EST
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Sonoro Independent Prospective Resource Report and Operational Update on the Budong Budong Project

(via TheNewswire)

Calgary, Alberta / TheNewswire / November 8, 2016 - Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V:SNV) is pleased to announce the findings of an independent prospective resource evaluation report that summarizes the range of potential resource volumes within its onshore Budong Budong Sulawesi Indonesia production sharing contract (PSC) area .Sonoro, furthermore , provides an update to its Budong Budong appraisal well program.

Budong Budong Sulawesi Indonesia - Independent Prospective Resource Evaluation Report

An independent evaluation of oil and gas potential for Sonoro's license area was prepared by McDaniel and Associates Consultants Ltd. ("McDaniel's"), a Qualified Independent Reserves Auditor. This report highlights the probabilistic volumes of prospective oil and gas resources within the Budong Budong Sulawesi Indonesia PSC Area which are cited on a 71.5% working interest basis and not on a production share or profit basis in the absence of an economic evaluation.

The independent resource assessment was prepared in accordance with Canadian NI 51-101 definitions and the COGE Handbook. The effective date of the report is September 30, 2016. McDaniel's evaluation was limited to oil and gas resources on only the Lariang ("LG") basin structure identified at the LG-1 well and does not include other potential leads. The Company believes that with the up-dip thickening there is an additional package that is not observed in the original well.

Highlights of the Prospective Resource Report

-Three distinctive Pliocene sands at approximate depths of 415m, 450m and 490m with oil accumulations are included in this prospective resource report. Up-dip thickening is currently incorporated into the high estimate of the probabilistic range and the company expects to embark on additional seismic interpretation of these up-dip sands.

-Un-Risked Prospective Resources (Net to Sonoro) in the Budong Budong PSC are estimated on an un-risked prospective recoverable basis to be approximately 15.922 million barrels of oil equivalent (Mean), ranging between 6.866 million barrels of oil equivalent (P90) to 28.440 million barrels of oil equivalent (P10). The risked mean volumes in the table below incorporates an average 36.5% chance of discovery and a 70% chance of development.

-Un-risked Total Petroleum In Place volumes (Net to Sonoro) are estimated as 75.624 million barrels of oil equivalent (Mean) and 66.428 million, 36.509 million and 126.124 million barrels of oil equivalent for the P50, P90 and P10 cases respectively.

There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources.

Table 1: Prospective Risked Resources (Sonoro Net Technically Recoverable) in the Budong Budong PSC area.

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Operational Update

Project planning for a two well appraisal program to target three Pliocene sands as described in the Prospective Resource Report between depths of 400-500m has advanced with the completion of the selection of the locations, an environmental impact assessment, and corporate social responsibility plan. More importantly the Company has identified a drilling rig contractor and received a turnkey offer to drill, complete and test the wells. The expected cost per well is expected to be below USD$ 1 million and can be mobilized within a 30 day notice period with the drilling program not expected to take more than 30 days from mobilization to demobilization. The final selection of this drilling contractor is subject to the negotiation of an acceptable definitive drilling contract and the approval of SKKMIGAS of the Company's proposed amended drilling program. The Company has been asked by the Indonesian government authority, SKKMIGAS to submit a 2017 budget and with this the Company hopes to receive an extension to the license termination date of Jan 15, 2017.

Richard Wadsworth, CEO and Director said "We are pleased with the independent prospective resource report confirming our belief that the Budong Budong PSC represents a multi-sand potential oil and gas zone with attractive resources to merit further appraisal and a further recognition of the sands thickening updip of the original abandoned LG-1 location. Furthermore, with our team lowering the appraisal costs through potential utilization of a fit for purpose drilling rig and improved scheduling, we are enthusiastic with the potential for this project and that SKKMIGAS may grant the Company an extension to pursue the appraisal and potential development of the Budong Budong project".

About Sonoro

Sonoro is an international oil and gas resource exploration and development company with a focus on SE Asia and its onshore Budong Budong Production Sharing Contract in Sulawesi Indonesia. The Company has commenced planning for a one to two well appraisal drilling program on the LG oil and gas prospect.

Forward-looking Statements

This press release contains forward-looking statements within the meaning of Canadian securities laws. These forward-looking statements contain statements of intent, belief or current expectations of the Company. Forward looking information is often, but not always identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook.

The forward-looking statements included in this press release, include without limitation, statements regarding work of the Integrated Project Management team, the drilling program including the number of appraisal wells and associated timing, drilling rig contractors, other drilling services, submissions of drilling and land permitting applications to the Indonesian federal and local governments, commissioning of an environmental assessment and report and corporate social responsibility plan, the independent resource evaluation for the Budong Budong PSC, development plans and production.

Statements relating to resources are deemed to be forward looking information, as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated. The resources estimates of the Budong Budong PSC described herein are estimates only. The actual resources at the may be greater or less than those calculated.

Forward-looking statements necessarily involve known and unknown risks and uncertainties, including, without limitation, the impact of general economic conditions, the risks and liabilities inherent in oil and natural gas exploration and operations; marketing and transportation; loss of markets; volatility of commodity prices; currency and interest rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; inability to access sufficient capital; changes in legislation, including but not limited to income tax, environmental laws and regulatory matters, including changes in how they are interpreted and enforced; geological, technical and drilling problems; and obtaining required approvals of regulatory authorities.

Readers are cautioned that the foregoing list of factors is not exhaustive. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that the Company will derive from them. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The forward looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by securities law.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:


CEO and Director


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Source: TheNewsWire (November 8, 2016 - 4:40 PM EST)

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