The U.S. properties, located in Northern California were, for the most part, non-Company operated joint ventures and royalty-only interests. These property sales were part of an overall program to remove the debt from the Company's balance sheet, which also included converting the remainder of the debt into shares. These moves not only eliminated the Company's debt position but focus its mandate on targeting the oil fields in Iraq with production potential in excess of 50,000 barrels of oil equivalent per day (BOEPD). In addition, Sonoran Energy will focus on securing North American properties with production over 500 BOEPD.
Sonoran Energy sold its working interest percentages in its low-producing oil and gas properties in the Bakersfield, California area. The sales of the Glide property, the Keystone and Merzonian leases on the Deer Creek Oil Company property, the Malton-Black Butte, Denverton Creek, Maine Prairie and the Lambie Ranch Gas Fields, and its interest in an oil and gas prospect located in the North West Lost Hills Oil and Gas Field assisted the Company in paying down its long-term debt.
"Our goal is to build a focused and efficient portfolio of assets composed of high producing oil and gas fields in Iraq and North America," said Sonoran Energy, Chief Operating Officer Peter Rosenthal. "These efforts are part of our strategy to maximize and grow the value of our base business. Through several strategic acquisitions over the short-term we expect to expand our current earnings, cash flow and resource base."
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