Canada’s Sonoro Energy to acquire 20% of UAE well manager

Sonoro Energy to acquire a stake in UAE-based regional well manager: Canadian oil and gas company Sonoro Energy signed a non-binding agreement to acquire a 20% stake in an undisclosed UAE-based company offering well management and engineering, procurement, and construction (EPC) services in the MENA region, it said in a statement. Sonoro plans to acquire the stake via a share swap agreement executed by its subsidiary.

The details: Sonoro’s subsidiary will offer 40 mn common shares in Sonoro at USD 0.12 per share, granting the UAE company 15.2% of Sonoro shares, without creating new insiders.

What’s next? A definitive agreement — which is expected to be hashed out in 2Q 2024 — will be subject to regulatory approvals, plus approvals from Canada’s TSX Venture Exchange and shareholders.

What we know about the UAE company: The company holds a five-year master service agreement with a national oil company for oil and gas well management and EPC services, according to Sonoro’s statement. The agreement covers existing oil and gas fields producing some several 100k bpd, and looks to ramp up the national oil company’s area production by over 100k bpd via well re-activation, EPC projects, sub-surface optimization studies, operational enhancements, maintenance activities, training programs, and ancillary support activities.