Baron Oil has signed a memorandum of understanding to enter into a production sharing agreement for a large oil field in Kazakhstan containing up to 120 million barrels of recoverable reserves of which an estimated 45 million barrels located in the shallow reservoirs (500 to 800 meters), an estimated 20 million barrels located in the middle reserves, and an estimated 40 million barrels located in the deep reservoirs (+5,000 meters). Baron Oil has conducted the first phase of its due diligence of the project, which will secure a 25% interest in the field to the Company.
Baron Oil believes that an upside potential exists in the reservoirs particularly in the deeper zones, where new seismic and Baron Oil's modern drilling and production technologies will be a factor in reducing the cost and significantly accelerating the production.
"Not only will the acquisition of Baron Oil strengthen our position in the Middle East but it opens the door to the tremendous potential that exists in the Caspian oil fields," said Peter Ostenfeld-Rosenthal President and CEO of Sonoran Energy, Inc. "Sonoran plans to utilize Baron Oil's advanced technology and expertise to make the development and enhancement of the projects in Kazakhstan a reality."
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