SNVFF - Sonoro Energy Provides an Update Strategic Outlook and Financing
(TheNewswire)
Calgary, Alberta – TheNewswire – May 1, 2023 - Sonoro Energy Ltd. (“Sonoro” or the“Company”) (TSXV:SNV.H) is in the process of developing a newstrategy and action plan to re-engage the Company’s operations thatwould allow it to advance back to the TSXV regular board. The Companybelieves it to be beneficial to advise current and future shareholderswith an update on this strategy and recent activities.
Our strategy will be to focus on building a diversifiedportfolio of oil and gas resources through the evaluation, acquisitionand development of proven oil and gas resources. Assessment of bothdomestic Canada and International opportunities is being pursued. Ourcurrent focus includes the assessment of opportunities in the WesternCanadian Sedimentary Basin (“WCSB”) where we believe we can builda solid base of production and cashflow which can then be leveraged toqualify for International transformational opportunities. Furthermore,we will only venture where we have the experience and team to managethe technical and commercial risks.
The Company has executed a non-binding Letter of Intent(“LOI”), with an arm’s length counterparty, subject to furtherdue diligence, environmental and title review, definitive and closingagreements amongst other conditions for an exciting opportunity in theWCSB, where a proven heavy oil resource fairway and well productivityis well defined. In addition to this, the direct offsetting operatoris currently producing ~1,850 bbl/d and has recovered to date 11million barrels. The LOI involves farming into a 1,840 acre block,where 3D seismic is also available, with the potential of over 30identified vertical drillable locations given the pervasiveness of thesands. Wells in the same established trend show area type productivitycurves estimated IP (Initial Production) rates of 60-90 bbl/d. Withour team’s heavy oil experience on cold heavy oil production systemsand mechanism (CHOPs) which are proven in the area, we can drill lowrisk, low cost wells and bring on production quickly. Sonoro hasproposed a 5 well farm-in, carrying the drilling, case and completioncosts of the counterparty, to earn a 70% working interest in thefarm-in lands and after which the parties will participate in futuredevelopment at a 70%/30% working interest split between Sonoro and thecounterparty. The LOI contains a period of exclusivity which providesSonoro the ability to satisfy customary conditions for this project. Once conditions and due diligence are finalized and a DefinitiveAgreement is signed, the Company will release further information.
Further to the above opportunities the Company isreviewing a number of opportunities in MENA, South-East Asia andSouth-East Europe where energy transportation/corridors to Europe arewell established. Establishing a solid resource base, production andcashflow as outlined above will improve our chances of capturing theseinternational opportunities.
The Company cannot provide any assurances that it willbe able to close any of the opportunities described above.
The Company further announces its intention to completea non-brokered private placement common share/warrant unit financingto support ongoing activities as described above. Each unit consistsof one $0.015 common share (a “Common Share”) and one common sharepurchase warrant (a “Warrant”) of the Company, where each wholeWarrant entitles the holder to purchase one Common Share within 12months at a price of $0.05 per Common Share. A total of up to 33.33million units are expected to be issued for total proceeds of up to $500,000. The securities issued inconnection with the Offering will be subject to a four month and oneday hold period from the date of issuance of such securities.
The Company intends to use the proceeds for funding duediligence, legal and consulting costs and general working capitalpurposes. Management and Insiders will be subscribing for a portion ofthe private placement. Any current shareholders or interested partiesin the financing are encouraged to contact the Company.
As previously press released, we are exiting the SelatPanjang project due to partner frustration over the past 3-4 years. Wehave pursued many action plans to continue with the project includinggovernment assistance in correcting our partners actions.Documentation is currently in place to release all of our financialobligations currently on our balance sheet as it relates to theproject and a clean break is anticipated.
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 ofthe foregoing, this news release contains forward-looking informationregarding the opportunities discussed.
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 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:
Sonoro Energy Ltd.
or
+1.403.262.3252
This press releaseis not to be disseminated in the United States
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