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Sonoro Energy Completion of Farm-In Agreement in the Western Canadian Sedimentary Basin
(TheNewswire) June 1, 2023 – TheNewswire - Calgary, Alberta – Sonoro ...
About this update from Sonoro Energy Ltd.
[{"type":"text","content":"Sonoro Energy Completion of Farm-In Agreement in the Western Canadian Sedimentary Basin\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n June 1, 2023 – TheNewswire -\n \n \n Calgary, Alberta\n \n \n – Sonoro Energy Ltd. (“Sonoro” or the “Company”)\n(TSXV:SNV.H) is pleased to report that it has completed the previously\nannounced Western Canadian Sedimentary Basin (“WCSB”) Farm-In\nAgreement (the “Agreement”), with an arms-length third party,\nbuilding the first step of the Company’s strategy to build a solid\nbase of production and cash flow in the WCSB.\n \n \n \n \n Under the terms of the Agreement, Sonoro will be the\noperator and earn a 70% working interest in a proven Waseca channel\nheavy oil resource fairway.  In consideration for acquiring the 70%\nworking interest in this 1,840-acre contiguous land block (the\n“Asset”), Sonoro has committed to fund up to CAD$5 million dollars\n(on a gross basis) and drill up to 5 wells (the “Carry”) with the\nfirst well scheduled to spud no later than September 30, 2023.  Upon\ncompletion of the Carry, Sonoro will earn a 70% working interest in\nthe Asset which contains numerous follow up drilling locations given\nthe pervasiveness of the channel sands.  After the Carry, further\ndevelopment will be at a 70%/30% working interest split between Sonoro\nand the counterparty, an Operating Agreement has also been executed\nbetween the parties which govern the joint operating procedures. After\nthe final release from the security holder, expected by June 15, 2023,\nof the counterparty and Sonoro proving it can fund an initial minimum\nof CAD$2 million by Jul 31, 2023, the Farm-In Agreement will be deemed\nclosed.\n \n \n \n \n This Asset directly offsets an established field which\nis currently producing over 1,850 bbl/d; having recovered 11 million\nbarrels to date within the same Waseca channel trend. With our\nteam’s heavy oil experience and established cold heavy oil\nproduction systems (“CHOPs”) which are proven in this area, Sonoro\nbelieves it can drill low risk, low-cost wells and bring on production\nquickly with area vertical CHOPs type wells IP90 rates of between\n60-90 bbl/d.  A typical newly drilled, completed and...