It is estimated that each new well location contains reserves of approximately 64,000 barrels of oil. Estimated and historical initial production per well is 30-50 barrels of oil per day. In order to exploit these reserves the wells must have fracture stimulation. A conservative estimated daily increase of 200 barrels of oil per day with all ten wells in production is expected.
"The delineation of these additional undeveloped reserves on Sonoran's Emjayco Glide #33 holdings represents another significant increase to our underlying value,'' said Sonoran Energy CEO John Punzo.
"This additional production capability combined with our growing revenue stream from the current Sonoran family of projects puts us well on track to attaining our goal of becoming a producer of between 1000 and 1500 barrels of oil per day."
Sonoran Energy's holdings consist of an 80 percent working interest in the 160-acre property Emjayco Glide #33 property in the Mount Poso Field, located in Kern County, California, with a total of 12 wells and one water injection well that had been inactive since 1986. The wells were shut down in 1986 due to record low oil prices ($6.50 per barrel). After 17 years of being off production, eight wells were successfully turned on and are producing approximately 30 barrels of oil per day and work continues on returning the remaining wells to production.
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