Blue Sky Energy Inc. (TSX VENTURE:BSI) has acquired from Sonoro Energy International Holdings BV, 100% of the issued and outstanding common shares of Sonoro Energy Iraq B.V. (“Sonoro Iraq”), a company incorporated in the Netherlands and the designated operator and party to several license agreements with the Al-Salah ad Din Provincial Government of Iraq for the exploration, appraisal and development of petroleum resources.

The primary contract, an Asphalt License Agreement signed in 2010, has been under Force Majeure since July 2013 due, at the time, to the deteriorating security situation.

Prior to that, Sonoro Iraq had conducted various studies, geological and drilling preparatory work, and published an independent prospective resource evaluation report covering the gross license area of 24,363 square kilometers or approximately six million acres. The report was prepared by RPS Energy Canada Ltd. in accordance with NI 51-101 definitions and the COGE Handbook.

In consideration for the acquisition, BSI will make contingent payments to the Vendor, in tranches, totalling up to four million dollars based on the start of crude oil production to eighty thousand barrels per day. In the event that no production is achieved by BSI related to Sonoro Iraq’s license agreements, no consideration or payments shall be owing or payable to the Vendor.

Highlights of the Prospective Resource Report:

  • Risked Prospective Resources in the Salah ad Din province are estimated on a gross recoverable oil basis to be approximately 5.2 billion barrels (P50), ranging between 1.7 billion barrels (P95) to 10.3 billion barrels (P5).
  • The estimated Recoverable Oil Resources for a single field discovery in the province is 200 million barrels (P50), ranging between 10 million barrels (P90) and 4.2 billion barrels (P10), with an expected (mean) field size of approximately 1.3 billion barrels oil recoverable.
  • The prospective heavy oil resources (<25┬░API) are expected to be between 42% and 60% of the total prospective oil resources in the province.
  • Recovery factors using the Energy Intelligence data (see note 3, below) indicate recovery factors in the range of 15% to 35% for all discovered fields in the study area (16.8% to 25.6% for the heavy oil fields).
  • There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources.

(Source: Press Release)

By John Lee.

Genel Energy has announced that a Declaration of Commerciality (“DoC”) for the Miran field has been approved by the Ministry of Natural Resources of the Kurdistan Regional Government (“KRG”). Genel currently holds a 100% working interest and is operator of the Miran licence. The KRG has the right to back in for a 25% working interest following DoC.

The Miran field was discovered in 2009 and an assessment by RPS Energy has assigned gross mean contingent resources of 3.5Tcf of gas/95mmbbls of oil and condensate to the Miran West structure. Further upside remains in the Miran East and Miran Deep prospects, with an exploration well planned on the latter in 2014. In total, Genel estimates that the Miran block contains c.8Tcf of gross recoverable contingent and unrisked prospective resources.

Following Declaration of Commerciality, the Development Period will commence on 5 September 2013, after which the Contractor will receive its share of revenues according to the PSC. An Early Production Facility for Miran oil was commissioned in August 2013 with the first well brought on-stream at c.2,000bopd. Work continues with the KRG to establish a Gas Commercialisation Plan, while Genel continues to expect the signing of a final Gas Export Agreement to Turkey by end-2013.

Commenting today, Charles Proctor (pictured), Head of Business Development for Genel, said:

The Miran Declaration of Commerciality represents an important milestone in the development of this major resource. We now look forward to continuing our work with the KRG to implement the Gas Commercialisation Plan and progress Miran towards project sanction.

“Our KRI gas business has the potential to supply a significant portion of Turkish demand growth, as well as having a transformational impact on Genel as our material resource base transitions closer to reserves.

(Source: Genel Energy)