Senoro seeks to raise up to $3.3m to fund appraisal well in Sulawesi

By Romel S. Gurky

TSX-listed Sonoro Energy Ltd announced Tuesday that it intends to raise up to US$3.3 million in gross proceeds by way of a non-brokered private placement of units, where a unit consists of one common share of the company and one half of one common share purchase warrant of the company, where each whole warrant entitles the holder to purchase one common share within two years from the closing date (as hereinafter defined) of the offering at a price of $0.05 per common share.

The company said in a statement that the offering is expected to close on or about April 18, 2017 but may close earlier or later or not at all. Closing of the offering is also subject to TSX Venture final acceptance.

Assuming the entire $3.3 million offering is completed, the principal uses of gross proceeds are expected to be used primarily for the drilling of an appraisal well in the Budong Budong license area of the company in Sulawesi.

With the Budong Budong license extension from the Indonesian government as announced on January 11, 2017, the company said it has been working to plan and identify the necessary sub-contractors for the drilling and drilling services to carry out the drilling of an appraisal well on its Budong Budong license.

Following the closing of this offering, the company said expects to finalize contracts for the drilling of the appraisal well offsetting the original LG-1 well and commence drilling operations between July and August of 2017.

Editing by Reiner Simanjuntak