Sonoro Confirms Results With Government Regulator, And Completion Of Consolidation Of Common Shares

Sonoro Energy Ltd. (“Sonoro” or “the Company”) is pleased to announce that following the LG-1 Updip well being cased and cemented, the Company fully demobilized the drilling rig and associated equipment and services. The Company is now undertaking further well analysis of the well results in line with standard industry practices.

The preliminary conclusions are as follows:

• The four-way dip closure of the LG structure is sealed by a claystone/shale interval which is at least 200 meters thick (evident from overpressure seen below the seal throughout the drilling and testing of the well);
• The reservoir intervals comprise interbedded packages of sandstones deposited by turbidite currents in a deepwater environmental setting;
• Initial analysis indicates that the sandstones are clearly porous and largely unconsolidated;
• Petrophysical analysis, conventional core and cuttings data indicate a 200m interval of interest in the well, of which 79m are sandstones with reservoir quality (> 30% log porosity).  The aim of the Drill Stem Test (“DST”) program was to accurately determine how much of this 79m of potential reservoir would actually flow hydrocarbons as most are too thin individually to calculate as pay using the resistivity log;
• The open hole DST results were constrained by mechanical problems brought on by the unconsolidated nature of the sandstones. Although hydrocarbons flowed to surface they did so in an uncontrolled manner which did not allow for accurate quantification;
• The unconsolidated nature of the sandstones may indicate high permeabilities, which together with the overpressures noted while drilling could provide the opportunity for strong productivity rates in future cased hole well testings;
• Results confirm that the Pliocene Lisu formation is likely to be a valid exploration target throughout the basin where several other leads and prospects have been mapped.

The Company has also met with SKKMigas, the Indonesian oil and gas regulator, to present the results of the well on the Budong Budong PSC land.

SKK Migas has agreed that further analysis and extended production tests is warranted to prove commerciality. Subsequent to this meeting, the Company has submitted its extension request to SKKMigas on the current license to continue with the program. The current license is set to expire on Jan. 15, 2018, and the Company expects to receive a multi-year extension on the Budong Budong PSC imminently.

The Company also announces that it has completed its previously announced consolidation of common shares at a ratio of 1 common share for 4 common shares.

The shares will trade on a post consolidation basis on Jan. 12, 2018. Subsequent to the share consolidation, the Company will have 44,328,616 common shares and 16,071,236 common share warrants outstanding.

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 (PSC) in the province of West Sulawesi, Indonesia. SNV has drilled and successfully cased the LG-1 Up-dip well, with oil and gas shows being present, and plans for further analysis and production testing.