Sonoro Energy Ltd (SNV)

[bwldforbucks1]

MHT,

Makes a lot of sense, thanks.

Got a follow-up question whenever you get the chance. Could you provide your general thoughts on how you see the infrastructure (topping facility, wells, pipelines, etc.) coming together in concert with necessary equity / debt raises? A pro forma “sources and uses” commentary if you will.

To further clarify my inquiry, I’ll briefly explain my thoughts. They obviously will have capital needs in the hundreds of millions at a minimum. So the question is, what is the timing of these expenditures and where does it come from? I understand that until they have proven a viable asset (oil reserves) and cash flows most of this will probably have to come from SNV equity. Once that is established, could they potentially project finance a topping facility and / or pipeline etc., if they have established viable offtake contracts? Or will it be a slower, more gradual approach that focuses on slowly building out wells / production and building up internally generated cash flow and expanding development in that manner. Or will they JV and share capital costs?

Along these lines, I noticed one of the highlights of the management descriptions of our COO noted his doubling of the Qarn Alam assets (that closely resemble our prospective ones) in the PDO to 90k boe / d in only three years. I think you see where I’m going with this……what do you think is possible?

Any response is greatly appreciated.