TSX Venture Exchange Symbol: SNV
CALGARY, March 6, 2012 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or the "Company") (TSX-V: SNV) is pleased to announce that the previously announced farmout transaction (the "Farmout") with Geopetrol International Holding Inc. and its subsidiary, Geopetrol Iraq Corp. (collectively, "Geopetrol") has closed.
Concurrent with the closing of the Farmout, the Company also closed the previously announced private placement (the "Private Placement") with Geopetrol for 46,000,000 common shares in the capital of Sonoro at a price of CDN$0.09 per share for aggregate gross proceeds of CDN$4,140,000. Following the Private Placement, Geopetrol owns approximately 17.5% of Sonoro's outstanding common shares. The common shares issued pursuant to this Private Placement will be subject to a four-month hold period.
Pursuant to the Farmout the Company has agreed to pay a finder's fee to an arm's-length third party, equal to three percent (3%) of the total amounts payable by Geopetrol under the Farmout, with two percent (2%) of such finder's fee (CDN$325,752) payable in cash and the remaining one percent (1%) (or CDN$162,876) payable in common shares of the Company (being 1,809,733 common shares at a price of CDN$0.09 per share).
With the successful closing of the Farmout with Geopetrol, Sonoro is now proceeding to finalize a contract for a drilling rig and associated services for its exploration drilling campaign on its North Salah ad Din ("NSD") prospect targeting 141 million barrels of P50 prospective resources. Sonoro has been having extensive discussions with interested service providers and plans to make the final contract award based on a number of factors, including drilling campaign cost, mobilization and demobilization cost, and timing of rig availability. The Company will confirm final timing once a contract has been signed.
As part of the civil works, which includes the construction of roads and well sites, a number of shallow water wells will be drilled for the provision of water for road construction and drilling operations. These water wells may provide additional geological information ahead of the exploration drilling campaign. Sonoro has completed a hydrological study of the area and is in the process of determining the final water well locations as well as acquiring the necessary approvals for these wells. A preferred local water well drilling company has been identified and contract negotiations are in the final stages.
Richard Wadsworth, Sonoro President & CEO, said "With the closing of this Farmout we are now in a strong position to execute our drilling program. Since announcing the Farmout in early January, we and our partners have been working together to further define and prepare for the NSD drilling program. We have also been reviewing the many other prospects within our license area and plan to prioritize and pursue these future opportunities."
Forward Looking Information
This press release contains forward looking information, including but not limited to planned exploration at Sonoro's North Salah ad Din prospect and 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.
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.
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PRESIDENT & CEO