SONORAN ENERGY Inc. (OTC:SNRN)
Industry: Basic Materials
Sonoran Energy, Inc. (Sonoran), incorporated on July 14, 1995, is an international independent oil and gas exploration and production company, developing and producing crude oil and natural gas. Sonoran's portfolio during the fiscal year ended April 30, 2005 (fiscal 2005), was comprised of assets located in Louisiana and East Texas. The principal assets of the Company consist of proven and unproven oil and gas properties along with oil and gas production-related equipment acquired as part of the leases, and include BVR Prospect, 25 Hill Prospect and East Texas Property. The Company also pursues opportunities in the Middle East, North Africa and the Caspian regions. On November 5, 2005, it closed on 12 wells acquired from Rippy Oil Company in East Texas. The Company has various working interests in 12 production wells, three associated salt water disposal wells and one water injection well located in two Counties in Texas. Sonoran also has various working interests in 10 producing wells covering six producing fields within various counties in the State of Louisiana. Limited production from these wells has been obtained during fiscal 2005. Sonoran contracts for operational support (contract operator) with operating companies within the area of operation. The contract operator will enter into additional contracts for field-level personnel (pumpers, rig crews, roustabouts and equipment operators) that perform basic daily activities associated with producing oil and gas. Daily operations include inspections of surface facilities and equipment, gauging, reporting and shipping oil, and routine maintenance and repair activities on wells, production facilities and equipment. In the event operations are controlled by a joint venture agreement, the operator nominated within the joint venture agreement will contract necessary field personnel. Crude oil from the Louisiana properties is sold to Texon LP under the terms of a contract between BPR Energy and Texon LP effective from February 1, 2004 through to August 31, 2004, and month to month thereafter. The average value realized for oil was $ 45.11 per barrel in fiscal 2005. Crude oil from the East Texas properties is sold to Eastex Crude Company and Plains Marketing, LP, based on agreements effective at the time of the purchase of the working interests in November 2004. The average value realized for oil was $ 47.64 per barrel in fiscal 2005. Natural gas sold from the Louisiana properties is sold under the terms of the gas sales contract between BPR Energy Inc. and Duke Energy Field Services, LP., entered into in January 1, 2001, covering a period of five years. The average value realized for the gas was $ 6.47 per million cubic feet in fiscal 2005. BVR Prospect During January, 2004, Sonoran acquired interests in 10 production wells completed in the Austin chalk located in Beauregard, Vernon, Rapides and Livingston Parishes in Louisiana from BPR Energy Inc. In addition to these 10 wells, Sonoran also acquired interests in four associated salt-water disposal wells. Of the 10 production wells, only three were producing at the time of the acquisition, with production only being undertaken to maintain and hold the lease position. Eight of the production wells have a 100% working interest (WI) and 73% net revenue interest (NRI) with a reversionary interest of 87% WI and 63.5% NRI after recovery of any capital investment necessary to enhance the production form the wells. The remaining two wells have a working interest of 100% WI and an NRI 65% with a reversion of 77.5% WI and 50.4% NRI under the same conditions. 25 Hill Prospect In January 2004, the Company had contracted for the right to participate in the 25 Hill Prospect, up to a 50 % W.I., depending on Sonoran's capital contribution to the development of the property and the drilling of oil and gas wells on the property. This contract had a cancellation provision if development was not undertaken, and Sonoran exercised that rescinding right on August 5, 2004, as the Company felt there were better opportunitie
As Of: 10/07 00:00 ET
*Quotes delayed by 20min.
BuyIns.Net Alerts for Symbol SNRN
- No BuyIns.Net Alerts Available for SNRN
Graphs for SNRN
3 Month Graph
6 Month Graph
1 Year Graph
