Jul. 26, 2011 (Canada NewsWire Group) --
TSX Venture Exchange Symbol: SNV
CALGARY, July 26, 2011 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V: SNV) is pleased to announce the findings of an independent contingent resource evaluation report that summarizes expected resource volumes on its initial prospect in Salah ad Din, within its license area in Iraq. The report highlights the probabilistic volumes of contingent resources within the North Salah ad Din prospect in Salah ad Din Province. The contingent resource evaluation covers only the Company's initial North Salah ad Din prospect and supplements the Company's previously announced prospective resource evaluation covering Sonoro's entire license area.
The report identifies approximately 1,233 million barrels (P50) of original asphalt (heavy oil) in place and contingent resources1 of approximately 141 million barrels (P50) 2, estimated on a recoverable asphalt (heavy oil) basis, specific only to the Company's initial prospect at North Salah ad Din, Iraq. These values are cited as 100% gross working interest volumes and not on a revenue share basis in the absence of an economic evaluation. Sonoro holds a 70% working interest in the entire license, with Berkeley Petroleum Mesopotamia Asphalts Limited holding the remaining 30%.
| Notes | ||||||
| (1) | Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied projects are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where the evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status. | |||||
| (2) | The P50 quantity or "best estimate" is considered to be the best estimate derived from the probabilistic analysis. This means that there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate. | |||||
Richard Wadsworth, President & CEO commented "The Company is pleased that our first prospect has been independently identified as a 1.2 billion barrel prospect, further supporting the Company's strategy of pursuing low risk, large resource prospects with early production and development opportunities. The Company continues to progress its operations. We expect to finalize civil and drilling rig contracts soon, allowing the Company to commence mobilization and operations."
The independent evaluation of asphalt (heavy oil) potential for Sonoro's North Salah ad Din prospect was prepared by RPS Energy Canada Ltd. ("RPS"), a Qualified Independent Reserves Auditor. The independent resource assessment was prepared in accordance with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and the Canadian Oil and Gas Evaluation Handbook. The effective date of the report is July 1, 2011. RPS' evaluation was limited to asphalt (heavy oil) resources (defined as <25°API) present in the Tertiary Jeribe Formation (down to a maximum depth of approximately 450 metres) for the North Salah ad Din prospect, within the Shirqat district in Northern Iraq. Sonoro expects to commence drilling operations of three appraisal wells into this prospect in September of 2011.
There is no certainty that any portion of the contingent resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the contingent resources.
Forward Looking Information
This press release contains forward looking information, including, but
not limited to, estimated resources and planned exploration at Sonoro's
Salah ad Din exploration project, the timing and results of the 3 well
drill program on the property as well as the potential for production
or reserves being derived from the prospect following completion of the
drill program. The forward looking information is based on current
expectations that involve a number of risks and uncertainties, which
could cause actual results to differ materially from those anticipated.
These risks include, but are not limited to risks associated with the
oil and gas industry (e.g. operational risks in development,
exploration and production delays or changes in plans with respect to
exploration or development projects or capital expenditures; the
uncertainty of resource estimates; the uncertainty associated with
geological interpretations; the uncertainty of estimates and
projections in relation to production, costs and expenses and health,
safety and environmental risks), political and security risk in Iraq,
the risk of commodity price and foreign exchange rate fluctuations,
risks associated with the implementation of new technology, risks
associated with obtaining, maintaining and the timing of receipt of
regulatory approvals, permits, and licenses, uncertainties relating to
access to capital markets and the risk of volatile global economic
conditions.
Statements relating to resources are deemed to be forward looking information, as they involve the implied assessment, based on certain estimates and assumptions that the resources described exist in the quantities predicted or estimated. The resource estimates of Sonoro's Salah ad Din exploration project described herein are estimates only. The actual resources at the Salah ad Din exploration project may be greater or less than those calculated.
Due to the risks, uncertainties and assumptions inherent in forward looking information, prospective investors in the Company's securities should not place undue reliance on forward looking information. Forward looking information contained in this press release is made as of the date hereof and are subject to change. The Company assumes no obligation to revise or update forward looking information to reflect new circumstances, except as required by law.
About Sonoro
Sonoro is an international oil exploration and development company. Our
current focus is asphalt (heavy oil) resource exploration and
development in Iraq. The Company has commenced with the evaluation of
resources within Salah ad Din Province and has plans for an initial 3
well appraisal drilling program expected to commence in September 2011.
The Company is also identifying additional exploration prospects across
its license for future development opportunities.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Statements
in this release that are forward-looking statements, including the
exploration success and development plans in Iraq, are subject to risks
and uncertainties, including those specific factors disclosed under the
heading "Risk Factors" and elsewhere in the Company's periodic filings
with Canadian securities regulators. Such information contained herein
represents management's best judgment as of the date hereof based on
information currently available. The Company does not assume the
obligation to update any forward-looking statement except in compliance
with applicable securities laws.
RICHARD WADSWORTH
PRESIDENT & CEO
+1 403.262.3252
info@sonoroenergy.com
www.sonoroenergy.com