Sonoro Energy Ltd (SNV)

[jojoba]

insiders buying

http://canadianinsider.com/coReport/allTransactions.php?ticker=snv

[jojoba]

BNN interview - SNV mentioned

http://watch.bnn.ca/trading-day/october-2010/trading-day-october-8-2010/#clip358520

[jojoba]

Great reply from poster MHT to my question about Sonoro on another board:


You are going to have to be more specific when you state Iraq, because Sonoro Energy's interests in Iraq are two-fold - they have 2 different projects going on simultaneously:

1) Topping Facility
2) Exploration & Production


Topping Facility

The topping facility in this case will be a diesel/kerosene refinery. The objective is to secure a supply of crude oil for a diesel/kerosene refinery that they would like to construct & operate. Please go here for the requirements to construct/operate a refinery in Iraq:

http://www.oil.gov.iq/Law-of-Private%20Investment-in-Crude-Oil-Refining.pdf



Most people are under the impression that this is a done deal - it is not. Please re-read the 3rd Quarter MD&A found on Sedar. Note the following paragraph:

Initially this will include pursuing immediate cash flow by securing a modular topping facility and a supply contract from Salah ad Din and the Ministry of Oil. A new modular topping facility has been identified, and the Company is reviewing options to finance it with debt instruments.


Then please re- read the following paragraph from the Company's Dec 2010 Presentation to Investors:

Topping facility – 1,000 to 5,000 bbls/d
• Discussing potential early supply contract while exploration program develops
• Reviewing possible debt financing with supply and sales contracts



In other words, at the present time, they do not have a deal in place for the Topping Facility. What they are saying is that they will be negotiating with the Iraqi Ministry of Oil and/or the Salah ad Din Province in securing a crude oil supply contract for a diesel/kerosene refinery that they would like to construct & operate.

As per the law above, the refinery will fall under the Ministry of Oil's jurisdiction - not the Provincial Government, and as such, they will have to negotiate with the Ministry of Oil to construct the refinery.

As most of you are aware, Iraq just formed a new government in November 2010. A new Minister of Oil (Abdul Karim al-Luaidi) wasn't appointed until just recently (December 21st, 2010: http://www.iraqoilreport.com/oil/production-exports/oil-output-up-fourth-bidding-round-planned-5255/ ). As such, it would have been impossible to negotiate anything pertaining to constructing a refinery until a couple weeks ago (when the new Oil Ministry opened for business).

Although they presently do not have a deal, I believe - given their contacts - they should have one secured within the next couple of weeks. As such, I believe that the first news headline to come out of Iraq to be either (or both):

a) SONORO ENERGY SECURES CRUDE OIL SUPPLY CONTRACT FROM THE IRAQI MINISTRY OF OIL
b) SONORO ENERGY SECURES CRUDE OIL SUPPLY CONTRACT FROM IRAQ'S SALAD AD DIN PROVINCE


Once they have a Supply Contract in hand, the next step will be to negotiate a Sales Contract for the diesel fuel (enter Mr. Nasser Bin Jarallah). With the Supply & Sales contracts in place, they can then apply for the debt financing (enter Mr. Ahmed Al-Shamsi) to acquire the Topping facility. Therefore once that has been achieved, the subsequent news heading will read:

SONORO ENERGY ACQUIRES DEBT FINANCING TO CONSTRUCT & OPERATE DIESEL/KEROSENE REFINERY IN IRAQ


For a total of $30 Million, one can procure a Diesel Topping facility from Texas, and have it shipped & installed in Iraq. Inglett & Stubbs International Ltd. has been retained to construct the facility.

If they can obtain the debt financing within a month from now, the Topping facility can be shipped as early as March. As such, it could be up and running by year's end.






Oil Exploration & Production

I've seen pictures of oil just seeping out of the ground in Iraq. As such, they would not have to do much drilling. According to the "December 2010 - Presentation to Investors" they will be drilling 10 shallow holes. If they start this program now, they should have a Resource Estimate out by the end of March / beginning April. They should be into production by the Fall 2011 (October - December).

As opposed to the Topping Facility, this is a done deal. Heavy oil does not come under the Petroleum Law; rather it falls under the Mining Law, and as a consequence, falls under Provincial jurisdiction. The Salah ad Din Province has already given Sonoro exclusive exploration & production rights for their entire province.

Incidentally, the Iraqi Ministry of Industry & Minerals was just renamed the Ministry of Energy a couple of weeks ago. The new Minister of Energy is the former Minister of Oil: Husayn al-Shahristani (http://en.wikipedia.org/wiki/Hussain_al-Shahristani)





Conclusion

As such, when you ask when do I expect to hear concrete plans out of Iraq, this is my guess for the next 3 months:

1) Secure Oil Supply & Sales Contracts by Mid-February.
2) Secure Debt Financing for the Topping Facility by the end of February.
3) Acquisition of Topping Facility in March.
4) Initial Oil Resource Estimate (from the shallow drilling) by the end of March / beginning April.


note: Iraqi Ministry of Oil's website is http://www.oil.gov.iq/

[jojoba]

Sonor's Management

•Richard Wadsworth
President & Chief Executive Officer
Mr. Wadsworth has more than 18 years of successful experience in developing heavy oil projects. He has been involved in various projects where there was little production, poor infrastructure or markets for heavy oil, growing them into significant assets through his vision and operational strengths. He was Co-Founder, President and COO of Bankers Petroleum Ltd. (“Bankers”), an oil and gas exploration, development and production company listed on the TSX & AIM, from its inception in 2004 until August 2008. During this period, he led Bankers in re-developing its heavy oilfield, building a comprehensive team, the necessary infrastructure and external relationships resulting in reserves growing to over 150 million barrels and production from 500 bopd to over 6,000 bopd.

Mr. Wadsworth previously led and managed a joint venture company for the initial exploitation of the current Bankers oilfield in Albania on behalf of Premier Oil Plc and its three international E&P partners. Previously, he held various roles within Koch Petroleum Canada over 9 years mainly in the heavy oil sector. Mr. Wadsworth is also a Director for Gallic Energy Ltd., a junior public oil & gas company with international assets. Mr. Wadsworth holds a Chemical Engineering degree from the University of Calgary, and is a registered Professional Engineer with APEGGA.

•Brian Farrell
Chief Financial Officer
Mr. Farrell is a chartered accountant with 25 years of experience in Alberta. Mr. Farrell is extremely active in the business community in Alberta and is a partner in the firm of Meyers Norris Penny LLP. Mr. Farrell was previously Chief Financial Officer of both Prize Mining Corporation and Mexican Silver Mines Inc.

•Dick ter Avest
Chief Operating Officer
Mr. ter Avest has twenty years of international oil and gas experience, of which 14 years where spent with Shell in several senior management roles in the Middle East, Europe and Asia Pacific. He was recently the CEO of Advanced Well Technologies and prior to that was with Woodside Energy and Shell. His accomplishments include growing Petroleum Development Oman’s (“PDO”) Qarn Alam assets, doubling production to 90,000 barrels of oil equivalent per day (boepd) within 3 years, leading field development of a US$1 billion offshore oilfield for Woodside Energy, and re-starting the stranded 400 million barrel Vincent heavy oil offshore field with Woodside. Mr. ter Avest has also successfully led oil and gas field acquisitions and divestments with values up to US$500 million.

•Robin Hamersma
Chief Business Development Officer
Mr. Hamersma has over twenty years of international oil and gas experience in technical, procurement, petroleum economics, commercial and leadership positions. Most recently he was commercial manager in Netherland’s largest operated oil and gas company, NAM, where he was responsible for joint venture management, infrastructure and equity deals, commercial agreements and managing relationships with joint venture partners, governments and other stakeholders. Previously he held various senior positions in Europe and the Middle East with Shell UK E&P and PDO. His accomplishments include implementing new multi-lateral drilling and completion technologies in the North Sea, developing tender strategies, negotiating and managing local and global supplier agreements (US$ 300 million) for PDO and the Shell Group and delivering various unitization, acquisition and divestiture and equity type deals for NAM and Shell UK.

•Robert Sandor
Chief Development Officer
Mr. Sandor is an E&P professional with twenty years experience in technical, commercial and managerial positions with Shell, working in Europe, Asia and West Africa. Most recently, he was a member of Shell’s corporate strategy group. He has a proven track record in operational asset management, project management, and oil and gas field development. Mr. Sandor’s career highlights include commercialization of a 1 Tcf offshore tight gas opportunity applying proven onshore fracturing technology, taking several infrastructure rejuvenation projects to commerciality (US$ 500 million) and leading both green field and brown field redevelopment projects, including their integration into existing infrastructure.

•Quinton Rafuse, P.Geol
Chief of Exploration
Mr. Rafuse is a professional geologist with over ten years of experience in the oil and gas industry in various technical and leadership roles. Most recently, he helped establish 3P International Energy Corp. and the acquisition of its Ukrainian assets. Formerly, Mr. Rafuse was CEO of Avere Energy Ltd. (now named East West Petroleum) when it successfully won 4 of 11 blocks in Romania’s last bid round in June 2010. His previous experience includes Vice-President Geoscience for Ember Resources Inc., where production increased from 300 boepd to 5,000 barrels of boepd during his tenure. Prior to that Mr. Rafuse worked as a geologist for Thunder Energy Inc. and EnCana Corporation.

•Dale Styner, CFA
Corporate Secretary
Mr. Styner has 20 years of legal, merchant banking and investment banking experience. Mr. Styner’s efforts with the Company are focused on strategy, finance and business development. Mr. Styner has extensive finance and business development expertise, including five years of investment banking experience at Canaccord Adams advising and raising capital for energy companies. Mr. Styner is a CFA Charterholder and was a professional squash player before entering the business world.

•Art Agolli
Consultant
Mr. Agolli was a co-founder of Bankers Petroleum Ltd. along with Mr. Wadsworth. Mr. Agolli was previously with Koch and the World Bank, and is his efforts with the Company are focused on business development.

•Claudio Arato, B.Sc., B.A.Sc., P.Eng
Director Engineering & Technology
Mr. Arato is a double graduate from the University of British Columbia in Canada, with degrees in Chemistry and Chemical Engineering. Over 19 years, Claudio has worked on commercializing novel, clean technologies ranging from commissioning the first successful closed loop pulp mill to developing pilot and commercial applications in nanotechnology, fuel cells, catalysts, biorefineries and water treatment (industrial , municipal, animal waste) and heavy oil upgrading.

Prior to joining Sonoro, he obtained three patents and has delivered technical presentations and completed projects throughout North America and Mexico including risk and process safety management services. His work with cellulosic ethanol technology development led to receiving the 2003 Canadian Institute of Energy (BC) R&D award.

Since joining Sonoro in 2006, he is engaged in the day-to-day management of all engineering and technical project development functions, from team management to R&D and process design and commissioning, focused on maximizing opportunities for the Sonoro applications pipeline.

He is extensively involved in the professional community through the Association of Professional Engineers and Geoscientists of BC (APEGBC), a three-term elected Councilor, sustainability & ethics instructor and member of many task forces & committees. Claudio was a founding board member of the Cascadia Prosperity Forum, a board member of the Consulting Engineers of BC and is the recipient of the 2010 D.C. Lambert President's Award for Professional Service.

[jojoba]

ABOUT Sonoro:

Sonoro is an international oil exploration and development company. Our current focus is heavy oil resource exploration and development in Iraq. We have initiated the evaluation of resource opportunities within our recently signed asphalt exploration license agreement in the province of Salah ad Din. We are also advancing our commercial application of heavy oil processing in Albania.

??Sonoro’s team encompasses a unique combination of previous international heavy oil success, strong relationships and regional influence. We are leveraging our proprietary technology in the exploration development and processing of hydrocarbon resources, specifically asphalt-rich heavy oil and bitumen. Our proprietary technology process improves heavy oil quality resulting in improved marketability and pricing of the processed oil.

??Sonoro recently signed an agreement with the Salah ad Din Governorate in Iraq, which granted the Company exclusive rights for exploration, development and production of asphalt and related organics to an area over 24,000 square kilometres. We are expecting that with the area having significant production, infrastructure and being on trend with other major oilfields that we will discover and develop a major resource-type project with expected early production and cashflow, within 18 months.

[jojoba]

Sonoro Energy Issues Shares to Berkeley
17:36 EST Thursday, January 06, 2011

TSX Venture Exchange Symbol: SNV

CALGARY, Jan. 6 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V:SNV) announces that it has issued 23.75 million shares to Berkeley Petroleum Mesopotamia Asphalts Limited at a deemed price of $0.38 per share under the terms of its agreement with Berkeley as announced on October 4, 2010. The share issuance was subject to TSX Venture Exchange approval, which has now been received. The shares will be subject to a four month hold period expiring May 7, 2011.

[jojoba]

Sonoro Energy Announces Closing of $10.125 Million Private Placement
11:29 EST Friday, January 21, 2011

CALGARY, ALBERTA--(Marketwire - Jan. 21, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Sonoro Energy Ltd. ("Sonoro" or the "Company") (TSX VENTURE:SNV) is pleased to announce the closing of its brokered private placement. Sonoro issued 40,500,000 units at a price of $0.25 per unit for gross proceeds of Cdn $10,125,000. Each unit is comprised of one common share ("common share") and one-half of one warrant, with each whole warrant exercisable into one common share for a period of one year after closing at an exercise price of $0.50 per share. The securities issued pursuant to this private placement will be subject to a four-month hold period expiring May 20, 2011. The private placement was completed by a syndicate of agents led by Macquarie Capital Markets Canada Ltd. and including FirstEnergy Capital Corp.

The net proceeds from the private placement will be used to advance the Company's project in the Republic of Iraq, including shallow drilling activities, seismic and data acquisition, topping facilities engineering and for general working capital requirements.

Sonoro now has 214,980,009 common shares outstanding, and trades on the TSX Venture Exchange under the symbol SNV.

[jojoba]

Sonoro Energy Announces Closing of $5.1 Million Non-Brokered Private Placement
13:27 EST Wednesday, December 22, 2010

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TSX Venture Exchange Symbol: SNV

CALGARY, Dec. 22 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or the "Company") (TSX-V:SNV) is pleased to announce the closing of its non-brokered private placement. Sonoro issued 20,420,000 units at a price of $0.25 per unit for gross proceeds of Cdn $5,105,000. Each unit is comprised of one common share ("common share") and one-half of one warrant, with each whole warrant exercisable into one common share for a period of one year after closing at an exercise price of $0.50 per share.

Sonoro paid finders' fees in connection with this private placement totalling $139,485. Management and insiders subscribed for over 4,000,000 units ($1,000,000) under the private placement.

The proceeds from the private placement will be used to advance the Company's project in the Republic of Iraq, including shallow drilling activities, seismic and data acquisition, topping facilities engineering and for general working capital requirements, including the ongoing development of the Company's technologies.

The Company's previously announced $10 million brokered private placement (the "Offering") is in addition to this non-brokered private placement and is scheduled to close in January 2011. In the event that the Offering closes within 45 days of the non-brokered private placement, the one year term of the warrants issued under the non-brokered private placement will be extended such that the expiry date of those warrants is the same as the one year expiry date of the warrants issued under the Offering. The securities issued pursuant to this private placement will be subject to a four-month hold period.

Sonoro Energy Ltd. now has 149,924,454 common shares outstanding, and trades on the TSX Venture Exchange under the symbol SNV.

[jojoba]

Inglett & Stubbs International and Sonoro Energy Enter Strategic Alliance for Iraq
08:00 EDT Monday, October 25, 2010

TSX Venture Exchange Symbol: SNV

CALGARY, Oct. 25 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V: SNV) today announced it has formed a strategic alliance with Inglett & Stubbs International Ltd. ("Inglett") whereby Inglett will support the execution of certain operations in Salah ad Din, Republic of Iraq.

Inglett has developed advanced design and building procedures that allow them to efficiently manage the most technically complex construction projects under difficult conditions and have become leaders in their industry. Inglett is known for exceptional performance and innovative design with a focus on providing turnkey solutions for worldwide projects in the harshest environments, including Afghanistan and Iraq where they have experienced personnel deployed.

As announced on October 4, 2010, Sonoro has been granted a license to construct and operate topping facilities within the province of Salah ad Din, Iraq with the further exclusive rights to explore for heavy oil. Inglett will provide initial logistical and operational support and the establishment of operations within Salah ad Din. The Company will work closely with Inglett to source a topping facility for construction and deployment in 2011. The Company and Inglett will also collaborate in reviewing power generation opportunities from products processed at the Company's topping facility once operational.

Over the next three months the Company plans to pursue leads on potential heavy oil resources within the province, to design a comprehensive exploration program, to drill initial stratigraphic wells and determine potential development programs to supply its topping facility.

Richard Wadsworth, President and CEO of Sonoro, commented "We are extremely pleased to have Inglett & Stubbs International Ltd. as a strategic partner. They have a wealth of experience in Iraq since 2003, know the Salah ad Din region and the overall Iraq landscape. They have seasoned personnel in Iraq and understand that the management of the operating environment is an important step for Sonoro, enabling us to rapidly move to exploration for resources and their subsequent development."

Tony Sinyard, President of Inglett, commented "We view Iraq as a significant growth opportunity in both oil resources and power generation. We have the ability to rapidly deploy power solutions to meet the high demand for power in Iraq. We are aligning ourselves with Sonoro as they have developed strong relationships in Iraq that have resulted in securing resource rights in Salah ad Din, an area known to have vast oil resources. We have the ability to assist Sonoro in establishing initial operations and constructing its facilities with our existing team of experienced professionals in Iraq."

Sonoro intends to continue to pursue additional oil development opportunities in the Middle East and internationally with an initial focus on heavy oil, bitumen and asphalt resources in Iraq. The Company is leveraging its proprietary technology and its operational experience which provide a strategic competitive advantage in capturing and developing such resources.

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.

For further information:

please contact Richard Wadsworth, Chief Executive Officer, at:
Tel: [phone]
Email:[e-mail]

www.SonoroEnergy.com