TSX Venture Exchange Symbol: SNV
CALGARY, Aug. 29, 2011 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V: SNV) is pleased to provide an operational update for its North Salah ad Din project in Salah ad Din, Iraq.
Operational Update
Drilling Rig, Services Equipment
Sonoro has concluded tendering and selection for a drilling rig and all
associated integrated services in connection with its three well drill
program on Sonoro's North Salah ad Din project. The tender process
contemplated that the contractor provide all services (camp, drilling
fluids, bits, cementing, logging, perforating, etc) and equipment to
carry out a fully integrated program to drill, complete and test the
planned three wells, with the successful bid constituting a binding
contract for services upon award of the tender by Sonoro.
Following a comprehensive review of the bids received and discussions with various bidders, Sonoro identified a full-service integrated drilling service provider with substantial operating experience in the region as the preferred contractor. Sonoro and the contractor have since made significant progress in refining the scope of the program and the related contractual terms and have completed a number of preparatory measures for the drill program, including early preparation of a mobile rig currently in country and ordering long-lead items. The parties contemplate executing a comprehensive drilling contract before work commences, but this step remains incomplete pending resolution of, among other things, inquiries of the contractor regarding permitting and approvals. While the timing for completion of this process cannot be confirmed, the preparation by the parties is sufficiently advanced such that the contractor could be on site and drilling approximately 60 days following a definitive decision to proceed.
Sonoro is currently awaiting a land lease agreement for the area of operations and is working with the Province to finalize this. All required documentation has been submitted and the approval is expected by as early as mid September.
Civil Construction
The Company tendered and received bids for the civil works program from
various local civil construction firms located in the Salah ad Din
Province in July, but, as further clarifications were subsequently
required, the Company re-opened the tender process in early August. The
Company has now received and reviewed revised bids. The Company
anticipates a 4-6 week period of construction once the bid is awarded.
Environmental Impact Assessment and Site Survey
A site survey was carried out in July to define the optimal surface
drilling locations and access road to the locations. Based on this site
survey, the Company has filed an application for the land lease
agreements with the Salah ad Din Provincial Government.
An Environmental Impact Assessment study has also been awarded to a local Iraqi company. This study is currently in progress on the drilling locations and vicinity.
Richard Wadsworth, President and CEO said "Over the past several months the Company has made significant progress in its planning as well as finalizing the drilling and civil works contracts. We look forward to carrying out the drilling program to appraise the North Salah ad Din prospect in the near future."
Financial Statements and MDA
Consolidated financial statements for the period ended June 30, 2011,
together with Management's Discussion and Analysis ("MDA") are now
available on the Company's website at www.sonoroenergy.com and will be available on SEDAR at www.sedar.com.
Forward Looking Information
This press release contains forward looking information, including, but
not limited to, planned exploration at Sonoro's Salah ad Din
exploration project, the timing and results of the three 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. 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
three well appraisal drilling program. The Company is also identifying
additional exploration prospects across its license for future
development opportunities.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.