Sonoro Provides Operational Update on its North Salah ad Din Prospect in Iraq (cnw)
TSX Venture Exchange Symbol: SNV
CALGARY, Aug. 29, 2011 /CNW/ - Sonoro Energy Ltd. ("Sonoro" or "the Company") (TSX-V: SNV) is pleased to provide an operational update for its North Salah ad Din project in Salah ad Din, Iraq.
Operational Update
Drilling Rig, Services & Equipment
Sonoro has concluded tendering and selection for a drilling rig and all associated integrated services in connection with its three well drill program on Sonoro's North Salah ad Din project. The tender process contemplated that the contractor provide all services (camp, drilling fluids, bits, cementing, logging, perforating, etc) and equipment to carry out a fully integrated program to drill, complete and test the planned three wells, with the successful bid constituting a binding contract for services upon award of the tender by Sonoro.
Following a comprehensive review of the bids received and discussions with various bidders, Sonoro identified a full-service integrated drilling service provider with substantial operating experience in the region as the preferred contractor. Sonoro and the contractor have since made significant progress in refining the scope of the program and the related contractual terms and have completed a number of preparatory measures for the drill program, including early preparation of a mobile rig currently in country and ordering long-lead items. The parties contemplate executing a comprehensive drilling contract before work commences, but this step remains incomplete pending resolution of, among other things, inquiries of the contractor regarding permitting and approvals. While the timing for completion of this process cannot be confirmed, the preparation by the parties is sufficiently advanced such that the contractor could be on site and drilling approximately 60 days following a definitive decision to proceed.
Sonoro is currently awaiting a land lease agreement for the area of operations and is working with the Province to finalize this. All required documentation has been submitted and the approval is expected by as early as mid September.
Civil Construction
The Company tendered and received bids for the civil works program from various local civil construction firms located in the Salah ad Din Province in July, but, as further clarifications were subsequently required, the Company re-opened the tender process in early August. The Company has now received and reviewed revised bids. The Company anticipates a 4-6 week period of construction once the bid is awarded.
Environmental Impact Assessment and Site Survey
A site survey was carried out in July to define the optimal surface drilling locations and access road to the locations. Based on this site survey, the Company has filed an application for the land lease agreements with the Salah ad Din Provincial Government.
An Environmental Impact Assessment study has also been awarded to a local Iraqi company. This study is currently in progress on the drilling locations and vicinity.
Richard Wadsworth, President and CEO said "Over the past several months the Company has made significant progress in its planning as well as finalizing the drilling and civil works contracts. We look forward to carrying out the drilling program to appraise the North Salah ad Din prospect in the near future."
Financial Statements and MD&A
Consolidated financial statements for the period ended June 30, 2011, together with Management's Discussion and Analysis ("MD&A") are now available on the Company's website at www.sonoroenergy.com and will be available on SEDAR at www.sedar.com.
Forward Looking Information
This press release contains forward looking information, including, but not limited to, planned exploration at Sonoro's Salah ad Din exploration project, the timing and results of the three well drill program on the property as well as 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.
About Sonoro
Sonoro is an international oil exploration and development company. Our current focus is asphalt (heavy oil) resource exploration and development in Iraq. The Company has commenced with the evaluation of resources within Salah ad Din Province and has plans for an initial three well appraisal drilling program. The Company is also identifying additional exploration prospects across its license for future development opportunities.
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.
For further information:
RICHARD WADSWORTH
PRESIDENT & CEO
+1 403.262.3252
info@sonoroenergy.com
www.sonoroenergy.com
