SNV:CC - Sonoro Energy Ltd. First Oil Sales from Saskatchewan Well
(TheNewswire)
This press releaseis not to be disseminated in the United States
February 29, 2024 – TheNewswire - Calgary, Alberta – Sonoro Energy Ltd. ("Sonoro" or the"Company") (TSXV:SNV) is pleased to announce that firstoil sales have been completed in Saskatchewan from our 14-29 well.Sonoro has two storage tanks totaling 2,000 barrels at the 14-29location. The tanks were close to full with product typicallyassociated with the early production phase from the process known asCHOPS or Cold Heavy Oil Production with Sand Production. The storagetanks have been emptied and production continues to ramp up consistentwith CHOPs heavy oil production typical in the area. Daily productionvolumes have been increasing and Sonoro will define the productionprofile when it stabilizes. CHOPS production in the area ischaracterize as follows.
Cold heavy oil production with sand (CHOPS) involvesthe deliberate initiation of sand influx during the completionprocedure, maintenance of sand influx during the productive life ofthe well, and implementation of methods to separate the sand from theoil for disposal. A liner with a small open hole was used to maintainhole stability while still encouraging sand worm holing. The sand isproduced along with oil, water, and gas and separated from the oilbefore upgrading to a synthetic crude.
CHOPS wells display wide variations in their productionhistories. CHOPS production depends on the range of factors discussedin CHOPS production rate increasemechanisms , CHOPS physicalmechanisms , and CHOPS operational and monitoringissues ; however, the major aspects of a“typical” CHOPS well include the following factors:
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When a new well is completed, initial sand influx islarge: 10 to 40% of the volume of the (gas-free) produced liquids andsolids.
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Over a period of a few days to several months, the sandrate gradually decays toward a steady-state influx rate (0.5 to 10%),depending on oil viscosity.
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The oil production rate increases to a maximum severalmonths or more after placing the well on production and then slowlydeclines as reservoir-depletion effects begin to dominate.
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All CHOPS production is accompanied by substantial gasproduction, and gas/oil ratio values tend to remain relativelyconsistent over many years.
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Short-term sand influx rates and oil production ratesfluctuate chaotically about the mean value.
Sonoro is pleased with how the well has performed todate and is analyzing the well results with its partners, furtherinterpreting the seismic data and assessing other key data points forselecting and executing on the next drilling location in Saskatchewan.Sonoro is closely monitoring when spring break-up will occur thisyear, which is difficult given the unusual weather patterns in thearea to date. Spring break-and the period associated with it,prohibits heavy road use and drilling activities in the area andtypically runs between mid March into May.
Forward-lookingStatements
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 of the foregoing, this news releasecontains forward-looking information regarding the opportunitiesdiscussed.
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 resource and reserveestimates, environmental risks, competition from other producers,inability to retain drilling rigs and other services, delays resultingfrom or inability to obtain required regulatory approvals, changes inlegislation including but not limited to income tax, environmentallaws and regulatory matters, the effectiveness of the technology to beemployed by the Company, the Company’s ability to spud each well inaccordance with the Farmin Agreement and its ability to accesssufficient capital from internal and external sources. Readers arecautioned that the foregoing 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 TSXVenture Exchange nor its Regulation Service Provider (as that term isdefined in the policies of the TSX Venture Exchange) acceptsresponsibility for the adequacy or accuracy of thisrelease .
For further information to participate in futurefinancing, please contact the company at:
On behalf of the Board of Directors
of Sonoro Energy Ltd.
Dean Callaway, CFO and Director
+1.403.262.3252
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