Post by
thorgb1 on May 30, 2023 2:53pm
Wow….
Great to see some action here again. Hopefully management delivers for us (finally), but have to expect news is imminent. No one just woke up this morning and decided to buy 3M shares of a little known, unsuccessful Canadian O&G play, so something has gotten out. Expect it has to do with this:
The Company has executed a non-binding Letter of Intent (“LOI”), with an arm’s length counterparty, subject to further due diligence, environmental and title review, definitive and closing agreements amongst other conditions for an exciting opportunity in the WCSB, where a proven heavy oil resource fairway and well productivity is well defined. In addition to this, the direct offsetting operator is currently producing ~1,850 bbl/d and has recovered to date 11 million barrels. The LOI involves farming into a 1,840 acre block, where 3D seismic is also available, with the potential of over 30 identified vertical drillable locations given the pervasiveness of the sands. Wells in the same established trend show area type productivity curves estimated IP (Initial Production) rates of 60-90 bbl/d. With our team’s heavy oil experience on cold heavy oil production systems and mechanism (CHOPs) which are proven in the area, we can drill low risk, low cost wells and bring on production quickly. Sonoro has proposed a 5 well farm-in, carrying the drilling, case and completion costs of the counterparty, to earn a 70% working interest in the farm-in lands and after which the parties will participate in future development at a 70%/30% working interest split between Sonoro and the counterparty. The LOI contains a period of exclusivity which provides Sonoro the ability to satisfy customary conditions for this project. Once conditions and due diligence are finalized and a Definitive Agreement is signed, the Company will release further information.
Comment by
FabiusCunctator on May 30, 2023 11:06pm
this sure looks like soneone knows somthang. How long before there is more news? This company has a reputation for not puttin out much news. Something is really happening here, the sp move and volume is huge. One of the biggest movers on the exchange today i am guessin