Drilling Update On LG-1 Up-Dip

Sonoro Energy Ltd. (“Sonoro” or “the Company”), using a proven coring drilling method that’s new to Indonesia’s oil and gas industry, has begun the next stage of operations for drilling the 8½-inch-diameter hole of its LG-1 appraisal well in the province of West Sulawesi, with a planned intermediate casing depth of 300 meters, to then be followed by coring to main target depths between 300 and 500m.

The upper-hole sections, with 133/8” and 95/8” casing, have been cemented and completed by Sonoro’s drilling contractor, Balikpapan-based PTI Advanced Services Indonesia (“ASI”), with the permanent wellhead and BOP (blow out preventor) installed for main-hole drilling operations.

Upon setting the casing to a 300m depth, expected later this week, coring operations with ASI’s Rig 3 would then begin for the main oil and gas targets between 300 and 500m within the Budong Budong Production Sharing Contract (PSC) lease, says Sonoro CEO and Director Richard Wadsworth.

“What we are achieving here with this coring drilling rig is something that is new to Indonesia’s upstream oil and gas regulator, SKKMIGAS, as well as the overall oil and gas industry here in Indonesia—and potentially provides a paradigm shift for oil and gas exploration in shallower to medium depth targets in Indonesia. Additionally with our coring and testing process we are able to obtain reliable reservoir data to confirm deliverability of the Budong Budong Pliocene reservoirs to unlock the full potential in this basin,” says Mr. Wadsworth.

“By utilizing this drilling coring and testing system successfully,” he adds, “we believe we would have a competitive and economic advantage on Budong Budong and several other prospects in Indonesia that we’re currently reviewing, and hope to pursue.”

Since spudding of the LG-1 appraisal well began on Oct. 2, operations have progressed more slowly than expected, due to repairs required to a third-party drilling mud system that was supplied to ASI after operations had commenced. Additional preventative measures were also added for well control, given the anticipated overpressure in the region and previous experience on the original LG-1 well. With a majority of our service contracts being fixed, and relatively low daily variable rates our costs have not materially changed beyond that of our original budget. The mud system is now fully functioning, and Sonoro is now well prepared to handle overpressure should it be encountered.

“Our teams are working safely and methodically through our drilling program and we are progressing,” says Mr. Wadsworth. “While it is taking longer than we planned, for this first-time operational set up with such a drilling coring rig, we’re pleased with how the rig and the crews are performing.”

About Sonoro Energy:
Sonoro Energy is an international oil and gas resource exploration and development company with a focus on Southeast Asia and its onshore Budong Budong production sharing contract in Sulawesi, Indonesia. The Company has commenced planning for a one to two well appraisal drilling program on the Budong Budong license offsetting the LG-1 well. For more information, visit www.sonoroenergy.com.