The Al-Salah ad Din Provincial Government has obtained the necessary Provincial and Central Government Ministry approvals to grant these rights under the Agreement.
Sonoro Iraq and Berkeley entered into an agreement whereby Sonoro Iraq has a 70% working interest and operatorship, while Berkeley retains a 30% working interest which is carried by Sonoro Iraq for the initial facility and exploration operations.
Sonoro Iraq obtained its interest in the License through Berkeley, and accordingly is paying Berkeley a US$250,000 signing bonus and issuing 23.75 million shares in Sonoro Energy Ltd. at a deemed price of $0.38 per share. Berkeley will also have a carried interest on exploration expenses, while Sonoro Iraq will have a preferential entitlement to recover its expenses before Berkeley can receive income on their equity interests in the project. In addition, Sonoro Iraq obtained further preferential rights from Berkeley and its affiliates to pursue similar asphalt opportunities in the Republic of Iraq as well as preferential rights to participate in at least one other conventional petroleum exploration and or development project Berkeley is currently pursuing within the petroleum sector in Iraq.
Richard Wadsworth, President and Chief Executive Officer of Sonora Energy, commented, "This is a remarkable opportunity for our Company to take its technical experience and process into one of the largest known petroleum areas in the world. We are now aligned with the Province of Al-Salah ad Din to process and develop certain hydrocarbon resources and facilities." Mr. Wadsworth further stated "I would like to thank Berkeley for utilizing its knowledge of Iraq and its extensive relationships to secure these assets and allow Sonoro Iraq to become its operating partner. I would also like to thank our Chairman, Mr. Adam Ranjit Sumel, for his contributions in assisting me in closing this transaction and being in Baghdad for the official signing."
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