DALLAS, March 13 /PRNewswire-FirstCall/ -- Sonoran Energy, Inc. (OTC:SNRN.PK), the independent oil and gas exploration and production company, today reported a number of major developments:
-- It has safely suspended work on its high impact Crosby 25 and 36 wells due to unforeseen technical challenges that require additional work exceeding the company's current financial resources. The wells are left in a status that meet regulatory requirements and facilitates future work. -- Two major shareholders have made a combined additional $3 million investment, which will be used to support financial obligations associated with the Louisiana program and to embark on selective work- over projects in Sonoran's West Texas properties. -- Sonoran's Board of Directors have formed a Committee to review strategic options for maximizing shareholder value from the company's current financial and asset base.
Peter Rosenthal, Chairman and CEO commented: "We are all disappointed that we did not get Crosby 25 and 36 to flow as a result of our work-over programs. However, through the upgrading process we saw evidence of the high value of the reservoir potential of these two wells (confirmed by actual production tests and by Haas Petroleum Engineering Services). The well economics remain highly attractive; however, the indicated work plan exceeds our current financial resources and risk tolerance. In the context of the strategic review that will be undertaken by the Board and management, we will examine all options for extracting the maximum value from these properties and the high quality work that our team has invested in bringing them forward."
The Company has finalized a new equity raise of $3 Million from two existing shareholders. Details of this transaction will be made public in an 8K filling to be issued shortly. These funds have been partially used in the above operations and a part of the funds have been ear-marked for development work in West and East Texas.
The Company will embark on the first stage of a selective 14 well work-over program in West Texas in the KWB field while reviewing its strategic options.
About Sonoran Energy, Inc.
Sonoran Energy is a US-based independent oil and gas company that explores, develops, and enhances the performance of high value oil and gas opportunities. With a focus on health, safety and the environment, we leverage the Company's innovative organizational alignment model with leading technical partners.
For more information contact: Investor Relations Dana Johnston Taylor Rafferty Tel: (212) 889-4350 Email: email@example.com
This news release may contain forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Source: Sonoran Energy, Inc.