SNVFF - Corporate Update
(TheNewswire)
Calgary, Alberta - TheNewswire - November 20, 2020 -Sonoro Energy Ltd (the "Corporation " or "Sonoro")(TSX Venture: SNV) (TSXV:SNV) provides the following corporate updates.
Selat Panjang Indonesia
Sonoro has been working with RISC Advisory to generatea 51-101 complaint reserve report as previously announced. Havingdelivered all of the PSC data to RISC it has become evident that tomaximize the value of the asset and to give shareholders the mostrealistic understanding of the potential, additional work is requiredprior to the completion of the report. This work will now be expandedto include a prospective resource assessment of the Pematangreservoirs in the BSR development area where an existing Plan ofDevelopment (POD) was approved in the past by the previous operator.Upon completion of this work, an updated POD focused initially on theBSR area will be prepared and submitted to the joint operator and theMinistry of Energy for approval. It is anticipated that this POD willinitially focus on early production and cashflow of the workover ofexisting wells both within the shallow Sihapis and in the deeperPematang reservoirs followed by exploration and appraisalactivities.
Warrant Extension
The Company has filed an application with the TSXVenture Exchange ("TSXV") to amend the expiry date of21,019,325 common share $0.10 purchase warrants issued by theCorporation in connection with a non-brokered Private Placement of theCorporation that closed on March 26, 2018.
The exercise period is being extended to December 31,2021. The Warrants, as amended, include an accelerated expiryprovision such that the exercise period of each of the Warrants willbe reduced to 30 days if for any 10 consecutive trading days duringthe unexpired term of such Warrants, the closing price of theCorporation's common shares exceeds a trading price of $0.20 percommon share or higher, with the 30-day expiry period commencing onthe day the Issuer either (i) disseminates a press release or (ii)sends a written notice to the holders of the Warrants, advising of thecommencement of the Exercise Period.
The Company has also filed an application to extend theexpiry date for 5,147,922 $0.075 warrants issued in connection with a"Warrant Incentive Program" that closed on October 6,2020.
The exercise period is being extended to December 31,2021. The Warrants, as amended, include an accelerated expiryprovision such that the exercise period of eachof the Warrants will be reduced to 30 days if for any 10 consecutivetrading days during the unexpired term of such Warrants, the closingprice of the Corporation's common shares exceeds a trading price of$0.15 per common share or higher, with the 30-day expiry periodcommencing on the day the Issuer either (i) disseminates a pressrelease or (ii) sends a written notice to the holders of the Warrants,advising of the commencement of the Exercise Period.
A portion of the Warrants are held by parties who areconsidered to be "related parties" of the Company.Therefore, the amendment of Warrants constitutes a "related partytransaction" as contemplated by Multilateral Instrument 61-101Protection of Minority Shareholders in Special Transactions, and TSXVPolicy 5.9 - Protection of Minority Shareholders in SpecialTransactions. However, the exemptions from formal valuation andminority approval requirements provided for by these guidelines can berelied upon as the fair market value of the Warrants does not exceeds25% of the market capitalization of the Company. A material changereport in respect of this related party transaction will be filed bythe Company.
Auditor Change
The Company announces that it has changed its auditorsfrom MNP LLP to Crowe MacKay LLP, chartered professional accountants. MNP LLP resigned as auditor in October 2020., and the board ofdirectors of the Company appointed Crowe Mackay LLP as the Company'sauditor effective November 20, 2020, until the next Annual GeneralMeeting of the Company.
There were no reservations in MNP's reports for the twomost recent completed financial years or any period subsequent to themost recently completed period for which an audit report was issuedand preceding the date of MNP's resignation. In the opinion of theAudit Committee and the Board of Directors ofthe Company, there are no reportable events between the Company andthe Former Auditor, as such term is defined in subparagraph 4.11(1) ofNI 51-102,
Forward-looking Statements
Certain information in this news release constitutesforward-looking statements under applicable securities laws. Anystatements that are contained in this news release that are notstatements of historical fact may be deemed to be forward-lookingstatements. Forward-looking statements are often identified by termssuch as "may," "should," "anticipate,""expects," "estimates," "seeks" andsimilar expressions. In particular, without limiting the generality ofthe foregoing, this news release contains forward-looking informationregarding the PSC.
Forward-looking statements necessarily involve knownand unknown risks, including, without limitation, risks associatedwith oil and gas exploration, development, exploitation, production,marketing and transportation, loss of markets, volatility of commodityprices, currency fluctuations, imprecision of reserve estimates,environmental risks, competition from other producers, inability toretain drilling rigs and other services, delays resulting from orinability to obtain required regulatory approvals, changes inlegislation including but not limited to income tax, environmentallaws and regulatory matters, and ability to access sufficient capitalfrom internal and external sources. Readers are cautioned that theforegoing list of factors is not exhaustive.
Readers are cautioned not to place undue reliance onforward-looking statements as there can be no assurance that theplans, intentions or expectations upon which they are placed willoccur. Such information, although considered reasonable by managementat the time of preparation, may prove to be incorrect and actualresults may differ materially from those anticipated. Forward-lookingstatements contained in this news release are expressly qualified bythis cautionary statement.
Additional information on these and other factors thatcould affect Sonoro's operations or financial results are included inSonoro's reports on file with Canadian securities regulatoryauthorities and may be accessed through the SEDAR website(www.sedar.com) or by contacting Sonoro. The forward lookingstatements contained in this news release are made as of the date ofthis news release and Sonoro does not undertake any obligation toupdate publicly or to revise any of the included forward-lookingstatements, whether as a result of new information, future events orotherwise, except as expressly required by securities law.
Neither the TSX Venture Exchange nor its RegulationService Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
This press releaseis not to be disseminated in the United States
For further information, please contact:
Sonoro Energy Ltd.
+1.403.262.3252
www.sonoroenergy.com
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