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Sonoro Energy Ltd
Symbol C : SNV
Shares Issued 217,172,020
Close 2011-07-25 C$ 0.225
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Sonoro identifies 1.23 billion barrels asphalt in Iraq
2011-07-26 03:33 ET - News Release
Mr. Richard Wadsworth reports
SONORO ANNOUNCES CONTINGENT RESOURCE EVALUATION ON INITIAL PROSPECT IN NORTH SALAH AD DIN, IRAQ
Sonoro Energy Ltd. has released the findings of an independent contingent resource evaluation report that summarizes expected resource volumes on its initial prospect in Salah ad Din, within its licence area in Iraq. The report highlights the probabilistic volumes of contingent resources within the North Salah ad Din prospect in Salah ad Din province. The contingent resource evaluation covers only the company's initial North Salah ad Din prospect and supplements the company's previously announced prospective resource evaluation covering Sonoro's entire licence area.
The report identifies approximately 1,233,000,000 barrels (P50) of original asphalt (heavy oil) in place and contingent resources of approximately 141 million barrels (P50), estimated on a recoverable asphalt (heavy oil) basis, specific only to the company's initial prospect at North Salah ad Din, Iraq. These values are cited as 100-per-cent gross working interest volumes and not on a revenue share basis in the absence of an economic evaluation. Sonoro holds a 70-per-cent working interest in the entire licence, with Berkeley Petroleum Mesopotamia Asphalts Ltd. holding the remaining 30 per cent.
Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied projects are not yet considered mature enough for commercial development due to one or more contingencies. Contingent resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where the evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent resources are further categorized in accordance with the level of certainty associated with the estimates and may be subclassified based on project maturity and/or characterized by their economic status.
The P50 quantity or best estimate is considered to be the best estimate derived from the probabilistic analysis. This means that there should be at least a 50-per-cent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
Richard Wadsworth, president and chief executive officer, commented: "The company is pleased that our first prospect has been independently identified as a 1.2-billion-barrel prospect, further supporting the company's strategy of pursuing low-risk, large-resource prospects with early production and development opportunities. The company continues to progress its operations. We expect to finalize civil and drilling rig contracts soon, allowing the company to commence mobilization and operations."
The independent evaluation of asphalt (heavy oil) potential for Sonoro's North Salah ad Din prospect was prepared by RPS Energy Canada Ltd., a qualified independent reserves auditor. The independent resource assessment was prepared in accordance with National Instrument 51-101 -- standards of disclosure for oil and gas activities and the Canadian oil and gas evaluation handbook. The effective date of the report is July 1, 2011. RPS's evaluation was limited to asphalt (heavy oil) resources (defined as less than 25 degrees API) present in the Tertiary Jeribe formation (down to a maximum depth of approximately 450 metres) for the North Salah ad Din prospect, within the Shirqat district in northern Iraq. Sonoro expects to commence drilling operations of three appraisal wells into this prospect in September of 2011.
There is no certainty that any portion of the contingent resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the contingent resources.
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