Sonoro Energy has entered into a strategic alliance memorandum of understanding with one of Indonesia’s largest companies to develop oil and gas activities in Indonesia as joint partners. This strategic relationship is focused on the pursuit of activities related to the Budong-Budong project in West Sulawesi, Indonesia and also includes other conventional oil and gas opportunities in Sumatra, Indonesia. The Indonesian entity is engaged in a diversity of businesses including property development, plantation ownership as well as trading both domestically and internationally.
In March and July 2018, Sonoro announced that it was unsuccessful in obtaining a term extension for the Budong-Budong production sharing contract in which Sonoro drilled a discovery well in November 2017. The consortium of the joint cooperation will continue to seek this extension from the Indonesian government under the current production sharing contract arrangement. There can be no assurance that project extension will be granted.
In addition, the joint cooperation intends to submit a joint bid in response to Indonesia’s conventional oil and gas second bidding round for October 2018. If successful in its bid, the company will have an interest ranging between 25% to 49% and will act as operator. Specific details about the new project and the Indonesian company will be provided if and when the joint cooperation is awarded the project, or if and when Budong Budong is granted an extension of its term.
The Company also announces that Chris Atkinson, the current Chairman of the Company, will assume the role of interim CEO with the resignation of Richard Wadsworth from his position as CEO. Mr. Atkinson thanks Mr. Wadsworth for all his efforts over the past years in that role. Dean Callaway, current CFO will join the Board as a Director of the Company.
“We are pleased to have the opportunity to become joint venture partners with one of Indonesia’s most successful private investment groups, which has had an impressive track record over their various business endeavors in Indonesia and is now seeking to repeat that success with Sonoro in the oil and gas sector,” Mr. Atkinson said. “The Joint Cooperation relationship will allow Sonoro to actively pursue additional opportunities in Indonesia, ultimately providing a more diversified portfolio of assets in a country I personally know extremely well.”
The company is continuing with the development of its blockchain technology concept, as well as its ongoing assessment of other international oil and gas production opportunities.