Sonoro Energy Ltd. · TSXV:SNV
Sonoro Energy — Investor Presentation (October 2012)
20 slides from Sonoro Energy's investor presentation, October 2012
Slide 1: Sonoro Energy Ltd. Investor Presentation October 2012
SONORO ENERGY LTD. Investor Presentation October, 2012
Slide 2: Slide 2
Slide 3: Forward-looking statements
Certain statements in this document may constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially diff
Slide 4: Listing and capital structure
Listing: TSX Venture: SNV Shares issued: 265 mm Directors, Officers & Insiders: ~22 % Recent Share Price: $0.13 (Sep 30, 2012) Market Capitalization: ~$33 mm Working Capital $6.7 mm (June 30, 2012) (Plus first $9 mm on Asphalt / Heavy Oil License) Research Coverage: FirstEnergy Capital 2
Slide 5: Province of Salah ad Din
Sonoro’s Asphalt Licence 24,000 km² - Exclusive five-year exploration license ± 50% Contractor Net Take ROFR if conventional discovery Country Stats 400+ identified structures 60 fields discovered, but not producing 25 fields on production 2.6 million barrels per day of oil production High demand fo
Slide 6: Management team
Richard Wadsworth – Chairman and CEO • Co-Founder and former President & COO Bankers Petroleum Ltd. Previously with Premier Oil, Koch Canada, Syncrude and Esso Canada Dick ter Avest – President and Chief Operating Officer • Former Executive with Advanced Well Technologies, Shell, Woodside in Europe,
Slide 7: Board of directors
Richard Wadsworth – Chairman & CEO Jesse Meidl Co-founder, Past President & COO CFO of Caithness Petroleum (private), Bankers Petroleum formerly investment banker with Thomas Weisel Dick ter Avest – President & COO Richard Monbaillard Former Executive with Advanced Well Technologies and Shell Over 3
Slide 8: Asphalt licence highlights
• 40% WI in exclusive Asphalt (Heavy Oil < 25 API) License • Entire Salah ad Din Province - 24,000 km2 - larger than Kuwait • First junior E&P company into Iraq proper, low entry cost / attractive fiscal terms • Local partner Berkeley Petroleum and international energy company partner Geopetrol • Ge
Slide 9: Drillable prospects and leads
Drillable Prospects (2) Prospects (6) Probable Leads (16) Possible Leads (11) 7
Slide 10: Prospect inventory table
Ref Name Map Status Size COS Seismic No. Abv Area @ Aug 2012 OOIP The prospect ranking are labeled as: 1 NSD 4 DRILLABLE > 1 Bn bbls VERY GOOD yes 2 3 SHQ A 4 4 DRILLABLE probable > 400 mmbbls >300 mmbbls? VERY GOOD fair yes yes • drillable prospects (NSD and SHQ) 4 B 4 probable >300 mmbbls? fair ye
Slide 11: North Salah ad Din structure
• 400m depth targeting Jeribe fractured limestone • Heavy oil of 11-15°API; > 100m pay • Anticline with four-way closure Structure lies • 141mm bbls recoverable (P50) underneath surface relief • Planning three appraisal wells on 2 separate structures • 35 km to northeast in Ninawa Province • Field s
Slide 12: North Salah ad Din and Sherqad locations
North Salah ad Din (NSD-1) Sherqad 10 (SHQ-1)
Slide 13: Drilling rig purchase
• Two separate drilling tenders were issued in 2011 • Most offers included older rigs in need of repair/refurbishment • Some rigs ‘stuck’ in Syria, uncertain mobilization timeframe • Most drilling rigs used in Iraq are 1500HP+ for deeper reservoirs • Sonoro identified good quality new-build 750HP, i
Slide 14: Community engagement and security
Scouting of the drilling area and nearby communities • Continued engagement with sheikhs and local tribal leaders through visits to the NSD area • Sonoro hired Iraqi nationals living in Iraq close to the drilling area to facilitate interaction • Security licenses being tightened in Iraq; Sonoro has
Slide 15: Drill site civil works
• New sites have been scouted and re-scoped • Fuel and water supply ready to be awarded at start of civil works • Civil works are an opportunity to provide employment for local people • Civil works expected to last 6-8 weeks 13
Slide 16: Licence terms and fiscal regime
Sonoro Energy Iraq B.V. (40%), Geopetrol (40%) and Berkeley (20% carry), collectively the “Licensee” • Exclusive rights to asphalt (heavy oil) exploration on 24,363 km2 • Revenue sharing between Province and Licensee • Licensee receives net take of 50%, with 80% of the revenues available for cost re
Slide 17: Example single integrated field economics
Example Single Integrated Field • Example field is a typical shallow asphalt Prospective OOIP Size 1.2 bn bbls (heavy oil) project based on NSD Prospect anticipated size and characteristics Prospective Recoverable 140 mm bbls • Other less-mature leads and prospects may Potential number of wells 300
Slide 18: Challenges and solutions
Challenge Solution Salah ad Din has minimal oil and gas activity Use local companies to extent possible; obtain and support services, unlike Kurdistan just to other services from established companies in the North, and Basra in the South neighbouring Kurdistan Security, obtaining visas and operating
Slide 19: Next steps
• Expecting Drilling Permit and Land Lease approval imminently • Following approvals execute project: execute civil work to prepare drill sites mobilize rig drill the prospects NSD and SHQ Sonoro funded for this campaign • On success, move to develop the resource quickly to an initial 5,000
Slide 20: Sonoro Energy Ltd.
SONORO ENERGY LTD.