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Sonoro Energy executes Selat Panjang Production Sharing Contract with Ministry of Energy in Indonesia

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Sonoro Energy, through a wholly owned subsidiary company, Zamatra Bakau Straits Ltd., along with its Indonesian partner, has formally executed the Selat Panjang Production Sharing Contract with the Indonesian Ministry of Energy.

Additional Information:

Company: Sonoro Energy Ltd.
Website: http://www.SonoroEnergy.com
Stock Symbol: TSXV: SNV
Date Published: Oct 15, 2019
Transcript: Available

Video Transcript:

I’m Megan Edwards for InvestmentPitch Media
Sonoro Energy, through a wholly owned subsidiary company, Zamatra Bakau Straits Ltd., along with its Indonesian partner, has formally executed the Selat Panjang Production Sharing Contract with the Indonesian Ministry of Energy.

The approximate 940 square kilometer Selat Panjang PSC, located in the prolific hydrocarbon area in the Central Sumatra Basin, is situated in Riau Province, approximately 120 km southwest of Singapore

Geologically the PSC acreage is within a very prolific hydrocarbon basin and surrounded by several major PSC's that produce more than 45% of Indonesia's current oil production.

A 50,000 barrel per day refinery is located 65 kilometers to the north of the block in Sumatra.

The Selat Panjang PSC has a 20 year term with a signature bonus of US$5 million and a five year work program commitment of US$74 million.

The production sharing contract is structured with variable incentives which make the gross split terms and conditions very attractive for the consortium.

Sonoro holds a 25% interest in the PSC with an option to acquire an additional 24% after completion of project milestones and will provide services as Operator of the project.

Bill Marpe, General Manager of Sonoro Energy Indonesia, stated: "We are extremely pleased to have finalized the terms of the Selat Panjang PSC with the government. Selat Panjang offers excellent opportunities for contributing to the oil and gas production in Indonesia. We are grateful to MIGAS and the Ministry of Energy and Mineral Resources for allowing us the opportunity to develop the project with a pre-approved Plan of Development for all four existing fields. The potential for meaningful hydrocarbon production is very good and the block is located close to infrastructure and markets that we can capitalize on.”

The shares are trading at $0.10.

For more information, please visit the company’s website, www.SonoroEnergy.com, contact Dean Callaway CFO, at 403-262-3252 or email information@SonoroEnergy.com.

I’m Megan Edwards for InvestmentPitch Media