Ok, I just want to point out to everyone that we are REQUIRED as a term in our Iraq agreement that we have ATLEAST a 1,000bpd topping facility by October 14 2012. If the supply agreement does not materialize which I am hoping it does... “With the planned drilling of first wells in the third quarter of 2011, and the successful discovery of commercial heavy oil, a supply agreement may not be required for the Company to proceed with a topping facility. The Company is also reviewing alternatives in relation to the financing, building and operation of topping facilities with third parties so that it may focus on the exploration, extraction and development of the prospective resources identified.
Why do I believe the supply agreement will go forward? Jobs, Jobs, Jobs, It fits with Iraq’s goal of increasing oil production and refining capabilities, and lastly, it fits with the required timeline. The latest we can expect a go/no go from the province would be august/September because then Sonoro would not be able to setup with the remaining time in the agreement. Furthermore, when we were given the green light - the Company has now received an investment permit from the provincial governorate of Salah ad Din allowing the Company to proceed with its asphalt (heavy oil) project. This permit allows Sonoro to immediately commence operations and allows for the importation of necessary equipment and personnel. If we have already been approached by full service drilling companies, who or what do we now have permission to
import?
What I am disappointed about is found buried at the very bottom of the document - the Company has identified three additional distinct prospects in different areas of the 20 province for which it plans to acquire additional data and potentially explore through the drilling of additional exploration wells in 2012. I was hoping these would be drilled Q4 at the latest.
Albania
The first thing that jumped out at me was the major reduction in our JV partner’s share of the venture. It was announced Feb 4 2010 as a 60/40 Sonoro/Private Venture. http://tmx.quotemedia.com/article.php?newsid=28203992&qm_symbol=SNV:CA
It is now a 83.33/16.67 Sonoro/Private Joint venture due to the lack of participation by our JV partner. In my earlier post I considred that there may have been bad blood over money or equipment upgrading issues on the private company’s part and i take the following quote found in the MD&A as legitimizing that comment.
“it has not contributed additional sourced equipment from abroad in satisfaction of its $1 million equity investment commitment under the joint venture. The Company incurred capital costs for certain additional equipment of approximately $270,000 in 2010 and is working with the joint venture partner to advance finance activities of the joint venture.”
On the positive side we have established the results of the process: The de-asphalting process applied to test samples in Albania resulted in API oil gravity increases from approximately 10°API to 16°API, with reductions in viscosity, sulphur and heavy metals
However, as stated in the MD&A there have been some political changes in Albania which may be working against this JV in its current form. The requirement to become a registered refinery in order to buy and sell in local markets and the additional excise taxes on the diluents make the JV unattractive unless they can find a different diluents – which is being actively pursued. BUT I agree with several other posters when they suggest that this makes a fee for use refining model VERY attractive if it is with a local producer. The major speculation with this business model is can they partner with BNK? The only flaw, and it may a fatal one...is that BNK is a CANADIAN company. However, as Richard said in the article (http://albertaventure.com/2011/04/technology-takes-over-the-oil-and-gas-industry/) - He says that Albania has no pipeline network and no refineries of its own, which means Sonoro’s technology will be a major asset for heavy-oil producers in that country by increasing the quality of the oil before it goes to a refinery.
Other
Unfortunately we are not getting paid by the purchaser or our soil remediation technologies and are currently considering legal action for the 1.2 million we are owed. Furthermore, I now consider the SonoAsh project to be a dead issue for all intents and purposes even though it produced VERY impressive results. The company’s statement :
The Company is actively seeking a commercial demonstration project at a coal-fired power plant with a potential partner and is evaluating strategic alternatives for the further development of its SonoAsh technology and related intellectual property
Recent SNV News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/11/2024 08:18:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/10/2024 08:32:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/07/2024 09:28:47 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/07/2024 08:32:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/04/2024 09:21:28 PM
- Synovus announces quarterly dividends • Business Wire • 06/03/2024 09:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/21/2024 08:29:18 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/21/2024 08:24:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 08:08:52 PM
- Form 13F-HR - Quarterly report filed by institutional managers, Holdings • Edgar (US Regulatory) • 05/14/2024 07:27:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:23:09 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:22:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:22:18 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:21:52 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:21:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:20:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/13/2024 08:20:34 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 08:31:28 PM
- Synovus announces earnings for the first quarter 2024 • Business Wire • 04/17/2024 09:00:00 PM
- US Index Futures See Gains, Oil Prices Dip • IH Market News • 04/17/2024 10:59:02 AM
- Synovus Financial Corp. releases 2023 Annual Report • Business Wire • 04/11/2024 01:29:00 PM
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- Synovus to announce first quarter 2024 earnings results • Business Wire • 03/18/2024 01:15:00 PM
- Synovus Names Chief Third-Party Payments Officer, Maast CEO • Business Wire • 03/05/2024 08:10:00 PM
- Synovus Announces Quarterly Dividends • Business Wire • 03/04/2024 10:00:00 PM
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