SNV:CC - Sonoro Energy Provides Update on Farm-In Agreement and Resumption of Trading
(TheNewswire)
Calgary, A B - TheNewswire - June 14, 2023 - Sonoro Energy Ltd.(“ Sonoro ” or the “ Company ”) (TSXV:SNV.H) ispleased to provide a current update on the previously announcedWestern Canadian Sedimentary Basin (“WCSB”) Farm-In Agreement (the“Agreement”), with an arms-length third party. Sonoro also advisesthat the Company’s shares will commence trading again on Monday June19, 2023.
Under the terms of the Agreement, previously disclosedin our news release dated June 1, 2023, Sonoro will be the operatorand earn a 70% working interest in a proven Waseca channel heavy oilresource fairway, subject to Sonoro fulfilling the obligations underthe Agreement. In consideration for acquiring the 70% workinginterest in this 1,840-acre contiguous land block (the “Asset”),Sonoro has committed to drill up to five wells (the “Carry”)funding up to CAD$5 million dollars (on a gross basis) and with thefirst well scheduled to spud no later than September 30, 2023. Aftereach well, Sonoro earns its 70% interest in the well spacing unit andhas a rolling option to elect the next well until the fifth well. Uponcompletion of the five well Carry, Sonoro will have earned a 70%working interest across the Asset which contains numerous follow updrilling locations given the pervasiveness of the channel sands. After the Carry, further development will be at a 70%/30% workinginterest split between Sonoro and the counterparty. An OperatingAgreement has also been executed between the parties which govern thejoint operating procedures. After the final release from the securityholder, expected by June 15, 2023, of the counterparty and Sonoroproving it can fund an initial minimum of CAD$2 million by July 31,2023, the Farm-In Agreement will be deemed closed. As at the date ofthis news release, Sonoro has not yet began earning the 70% interestunder the Agreement.
Sonoro has fully evaluated the Asset, prioritized itsfirst locations, and plans to elect to drill both the initial testwell in addition to one additional location upon finalizing therelease and having the $2,000,000 of funding in place. Sonoro hasrecently announced and completed an equity/warrant financing for$500,000 and will raise the additional minimum $1,500,000 via a to bedetermined funding source which could include a private placement,warrant exercise, advance or loan by individuals/entities or acombination of the sources indicated and all subject to TSXV approval.The completion of the $1,500,000 financing is conditional upon theclosing of the Agreement. The test well is scheduled to spud beforeSeptember 30, 2023. Sonoro has initiated the process of procuringsurface lands, a drilling rig and other long lead items inanticipation of spud. As at the date of this news release, Sonoro hasnot commenced drilling of any wells pursuant to the Agreement.
Sonoro has submitted the Geological Report to thesatisfaction of the TSXV and also has submitted an application tograduate to the TSXV, which we anticipate receiving upon finalizingthe above-mentioned funding and closing the transaction.
Sonoro also advises that the Selat Panjang PSC inIndonesia has been released to its former partner and allobligations/liabilities associated with the project have beenextinguished. This will be reflected in the financial statements atthe period ended June 30, 2023.
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:
For further information to participate in futurefinancing, please contact the company at:
Sonoro Energy Ltd.
or
+1.403.262.3252
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