Sonoro hires resource evaluation firm for Budong Budong PSC

By Romel S. Gurky

TSX-listed Sonoro Energy Ltd. said it has engaged an independent resource evaluations firm to provide a report on prospective resources of the Budong Budong project, in West Sulawesi.

The company said in a statement Monday that the report is expected to be completed this month. No further details were provided.

Sonoro in June acquired Stockbridge Oil and Gas Ltd, which holds controlling 71.5 percent shares and the operator of the Budong Budong PSC. The remainder held by Tately Budong-Budong BV.

Sonoro announced in August plans to drill one to two appraisal wells in the Budong Budong PSC in the fourth quarter of this year.

In July 2016, the company hired an Integrated Project Management (IPM) team to begin with planning, engineering and permitting for the appraisal wells which are up-dip on the structural crest from the LG-1 well. The IPM team work is expected to be concluded by the end of August or early September 2016. With this initial work completed the company expects to have a finalized drilling program, identified potential drilling rig contractors, other drilling services and submitted drilling and land permitting applications to the Indonesian federal and local governments. An environmental assessment and report is also expected to be commissioned by the company along with a corporate social responsibility plan for the project.

?While the company hopes to drill these appraisal wells in the fourth quarter of 2016, this is dependent on a number of factors including further approval from the Indonesian governments to permit an extension of the January 15, 2017 license expiry term associated with the Budong Budong PSC and the company securing the necessary funding to drill these appraisal wells.

Editing by Reiner Simanjuntak