Selat Panjang Update and Warrant extension

Selat Panjang Update and Warrant extension


Sonoro Energy Ltd

December 6, 2022 –


Sonoro Energy Ltd (the “Corporation “ or
“Sonoro”) (TSXV:SNV)

provides an update on
the Selat Panjang project in Sumatra, Indonesia. The Corporation also
announces its application to extend its common share purchase

Negotiations between the project partners, Sonoro and
Menara Global Energi  (“MGE”), to agree to terms by which MGE
would take a share position in Sonoro have been ongoing until
recently. Unfortunately, MGE has indicated that it no longer is
interested in taking a share position in Sonoro or in pursuing any
relationship with Sonoro that would permit Sonoro to cure the legacy
issues and maintain an interest in the PSC.  Sonoro is extremely
disappointed that after serious discussions and efforts over the past
months that both parties were unable to find a mutually beneficial
structure to advance the Selat Panjang Project.

Over the past three years since the Selat Panjang PSC
was awarded to the partners whereby Sonoro had provided the technical
and operational experience to qualify for the bid round and won the
PSC with MGE providing financial qualifications Sonoro has continued
to attempt to negotiate with MGE the customary necessities   to
advance the PSC in Indonesia. An industry standard Joint Operating
Agreement (“JOA”) was to be put in place, however MGE frustrated
these efforts despite Sonoro agreeing to many modifications to
accommodate MGE and the project. MGE further frustrated the
partnership on this PSC by completely going silent and ignoring
Sonoro’s efforts to move the project forward for almost two years.
Little activity was completed on Selat Panjang over the initial three
year period of the PSC and with only 23 months now remaining in the
original five-year term of the PSC  Sonoro was concerned that even if
an agreement had been reached there was a substantial non-performance
risk on Selat Panjang with SKK Migas and PSC contractual commitments.

In June 2022, Sonoro announced re-engaging with MGE and
a new MOU that had certain work items that would solve legacy issues
and put the project back on track. Over the past couple months MGE has
begun re-completing wells, which expenditures are not included as a
portion of the commitment under the PSC, which without a JOA, Sonoro
is unable to participate in, however Sonoro provided its technical
advice to MGE in good faith.

Discussions between the parties have been happening
over an extended period and now appear to have concluded with no
further resolution in sight to resolve the legacy issue. Sonoro is in
default on a convertible debenture and a loan agreement between Sonoro
and MGE and MGE has a lien against Sonoro’s 25% participating
interest in the project.  MGE has previously proposed a settlement
agreement that will resolve the outstanding issues related to the
default including the foreclosure on the Sonoro’s interest in the
PSC and it transfer to MGE.  Sonoro may excute and deliver the
settlement agreement in the near future, however Sonoro continues to
consider all of its available legal options.

In the interim, the Company is exploring and discussing
specific other opportunities in and outside of Indonesia with third
parties that may progress the Company’s activities in the
hydrocarbon sector.

Mr. David Kirk, President and CEO of the Company has
informed the Board of Directors that he will resign from the Company
subsequent to closure of  the Selat Panjang partnership. The Board of
Director’s appreciates all efforts Mr. Kirk has provided in an
attempt to advance the project to MGE’s satisfaction.

Sonoro Warrant term extension

The Company has filed an application with the TSX
Venture Exchange (“TSXV”) to amend the expiry date of 24,457,247
common share purchase warrants previously issued by the Corporation
and that had an expiry of December 31, 2022. The warrant term will be
extended to May 31, 2023 which is the same term as the balance of the
other warrants outstanding by the Company or 7 million warrants priced
at 10 cents per warrant. The amount and price of the warrants being
extended total 24,457,247 with pricing of 20,657,466 warrants at 7
cents, 1,855,874 warrants at 7.5 cents and 1,943,907 warrants at ten

Forward-looking Statements

Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact may be deemed to be forward-looking
statements. Forward-looking statements are often identified by terms
such as “may,” “should,” “anticipate,”
“expects,” “estimates,” “seeks” and
similar expressions. In particular, without limiting the generality of
the foregoing, this news release contains forward-looking information
regarding the PSC.

Forward-looking statements necessarily involve known
and unknown risks, including, without limitation, risks associated
with oil and gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other producers, inability to
retain drilling rigs and other services, delays resulting from or
inability to obtain required regulatory approvals, changes in
legislation including but not limited to income tax, environmental
laws and regulatory matters, and ability to access sufficient capital
from internal and external sources. Readers are cautioned that the
foregoing list of factors is not exhaustive.

Readers are cautioned not to place undue reliance on
forward-looking statements as there can be no assurance that the
plans, intentions or expectations upon which they are placed will
occur. Such information, although considered reasonable by management
at the time of preparation, may prove to be incorrect and actual
results may differ materially from those anticipated. Forward-looking
statements contained in this news release are expressly qualified by
this cautionary statement.

Additional information on these and other factors that
could affect Sonoro’s operations or financial results are included in
Sonoro’s reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website
( or by contacting Sonoro. The forward looking
statements contained in this news release are made as of the date of
this news release and

Sonoro does not undertake
any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by securities

Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy
of this release.

For further


please contact:

Sonoro Energy Ltd.

1 403 262 3252

This press release
is not to be disseminated in the United States

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