Business
Sonoro Energy Provides Update on Farm-In Agreement and Resumption of Trading
(TheNewswire) Calgary, A B - TheNewswire - June 14, 2023 - Sonoro E...
About this update from Sonoro Energy Ltd.
[{"type":"text","content":"Sonoro Energy Provides Update on Farm-In Agreement and Resumption of Trading\n \n \n (TheNewswire)\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Calgary, A\n \n \n B\n \n \n -\n \n \n TheNewswire -\n \n \n June 14, 2023\n \n \n -\n \n \n Sonoro Energy Ltd.\n(“\n \n \n Sonoro\n \n \n ” or the “\n \n \n Company\n \n \n ”)\n \n \n (TSXV:SNV.H)\n \n \n is\npleased to provide a current update on the previously announced\nWestern Canadian Sedimentary Basin (“WCSB”) Farm-In Agreement (the\n“Agreement”), with an arms-length third party. Sonoro also advises\nthat the Company’s shares will commence trading again on Monday June\n19, 2023.\n \n \n \n \n Under the terms of the Agreement, previously disclosed\nin our news release dated June 1, 2023, Sonoro will be the operator\nand earn a 70% working interest in a proven Waseca channel heavy oil\nresource fairway, subject to Sonoro fulfilling the obligations under\nthe Agreement.  In consideration for acquiring the 70% working\ninterest in this 1,840-acre contiguous land block (the “Asset”),\nSonoro has committed to drill up to five wells (the “Carry”)\nfunding up to CAD$5 million dollars (on a gross basis) and with the\nfirst well scheduled to spud no later than September 30, 2023. After\neach well, Sonoro earns its 70% interest in the well spacing unit and\nhas a rolling option to elect the next well until the fifth well. Upon\ncompletion of the five well Carry, Sonoro will have earned a 70%\nworking interest across the Asset which contains numerous follow up\ndrilling locations given the pervasiveness of the channel sands.\n After the Carry, further development will be at a 70%/30% working\ninterest split between Sonoro and the counterparty. An Operating\nAgreement has also been executed between the parties which govern the\njoint operating procedures. After the final release from the security\nholder, expected by June 15, 2023, of the counterparty and Sonoro\nproving it can fund an initial minimum of CAD$2 million by July 31,\n2023, the Farm-In Agreement will be deemed closed. As at the date of\nthis news release, Sonoro has not yet began earning the 70% interest\nunder the Agreement.\n \n \n \n \n Sonoro has fully evaluated the Asset, prioritized its\nfirst locations, and plans to ele...