Sonoro Energy Ltd through a wholly-owned subsidiary company Zamatra Bakau Straits Ltd, along with its Indonesian co-venturer, announce that it is in the process of assuming full operations of the Selat Panjang oil and gas concession from SKKMIGAS. SKKIMIGAS has been in charge of the field operations since the concession was terminated by the Government of Indonesia from the previous operator. Sonoro and its partner are staffing the project with technical and operational expertise to optimize the development plan in progress.
The co-venturers are in the process of collecting and analyzing all technical data on the project and are completing the proposed work program and budget for approval by the partners and submission to SKKMIGAS as per the project agreements. After completing an internal review of the subsurface data, a reserve report that is 51-101 compliant in accordance with TSXV requirements will be produced. The partners have the benefit of extensive reserve analysis from past operations and are encouraged by the upside potential offered at Selat Panjang.
The Selat Panjang Production Sharing Contract has a 20-year term and an initial five-year commitment of USD 74M. The partners aim to implement a drilling program as soon as practically possible to reactivate previous wells where feasible and to commence drilling on new prospective targets.
Sonoro holds a 25% interest in the PSC with an option to acquire an additional 24% after completion of certain project milestones. Sonoro will provide services as the operator of the project.