Sonoro Replaces Drilling Contractor And Rig For Budong Budong Appraisal Well Program

Following repeated delays, Sonoro Energy Ltd. (“Sonoro” or “the Company”) has replaced the drilling contractor for its LG-1 Up-dip appraisal well program in the Budong Budong Production Sharing Contract (PSC) lease in West Sulawesi, Indonesia.

This development follows continued delays in obtaining the necessary final rig certification, and mobilization, well past a deadline of July 24, 2017 that had been stipulated in the contract.

Sonoro has now agreed to the key terms of a contract with PT Advanced Services Indonesia (“ASI”) to provide a hydraulic drilling and coring rig, with all necessary certifications in place, after reviewing available equipment at ASI’s centre of operations in Balikpapan, Indonesia.

The revised timing of a new spud date for the LG-1 Up-dip well will be announced once a new schedule is finalized; initial targets indicate the first half of September 2017 to be a reasonable time frame.

“We are pleased to have found a well-established company in ASI with a strong track record, a fit-for-purpose drilling and coring rig and operating in Indonesia that is capable of achieving our objectives for the LG-1 Up-dip well. The new rig and its associated equipment have all the necessary certifications in place, allowing us to proceed with confidence in final mobilization plans,” says Sonoro’s Chief Executive Officer and Director Richard Wadsworth.

“Without having an SKPI certification from Migas (Indonesia’s upstream oil and gas regulator), we would have been exposed to continued delays—and the possibility of failing to meet the requirements of our PSC license,” adds Mr. Wadsworth.

Other associated drilling services and equipment for which Sonoro is responsible—including cementing services, mud services, chemicals, well head, casing and other tubulars—arrived last week at the port of Makassar, on the island of Sulawesi, and were transported by road to the LG-1 site.

“With the exception of the drilling rig, all other services and equipment are now mobilized, ready for the appraisal program, and prepared to integrate with this new drilling rig,” says Mr. Wadsworth. “We have been very pleased with our team and our local contractors in achieving the delivery of our other support services safely and within the planned timelines.”

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.