sonde resources corp - investor presentation

37
Joint Oil Block Sonde Resources Corp Focusing our Business Plan and Accelerating Value Creation for Shareholders December 2013

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Sonde Resources Corp. is an oil and gas exploration and production company based in Calgary, Alberta, Canada. Sonde Resources holds a global portfolio of high potential energy assets including producing oil and natural gas assets in Western Canada and offshore exploration property in North Africa.

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Page 1: Sonde Resources Corp - Investor Presentation

Joint Oil Block

Sonde Resources Corp

Focusing our Business Plan and Accelerating Value Creation for Shareholders

December 2013

Page 2: Sonde Resources Corp - Investor Presentation

Disclosure Statements

2

Forward Looking Information – This presentation contains "forward-looking information" within the meaning of applicable Canadian securities laws and "forward looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, among others, the proposed business plan for Sonde (assuming completion of the arrangement with Marquee Energy Ltd (“Marquee), the proposed unitization of the Zarat Field and the plan of development associated therewith (the "Zarat Plan of Development“, the projected production profile for Zarat field, Exploration potential of the Joint Oil Block, anticipated operational timeline, estimated costs, and ultimate recovery associated with the Western Canadian exploratory acreage. Such forward-looking information or statements are based on a number of assumptions which may prove to be incorrect. Assumptions have been made regarding, among other things, market and operating conditions, future commodity prices, and management's expectations regarding the availability of capital on terms acceptable to the Company. Forward-looking information or statements are subject to a number of risks and uncertainties and actual results could differ materially from the forward-looking information and statements due to a number of factors, including, without limitation, general economic, market and business conditions; stock market volatility; risks in conducting foreign operations, including political and fiscal instability and the possibility of civil unrest or military action; changes in government policies or laws; risk that government approvals may be delayed or withheld; lack of, or restricted access to, sources of financing; and commercial risks associated with the Joint Oil Block. Additional assumptions and risks are set out in detail in the Company's Annual Information Form, available on SEDAR at www.sedar.com., and the Company's annual reports on Form 40-F on file with the U.S. Securities and Exchange Commission. In addition, information relating to “resources” is deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions, that the resources described can be recovered in the future. See disclosure regarding resource definitions and further risks and uncertainties associated with resources. Forward-looking information or statements are based on a number of risks, uncertainties and assumptions which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Assumptions have been made regarding, among other things, the ability of the Company to secure the necessary license holder and governmental approvals for Zarat Field, the entering into of a unitization agreement for the Zarat Field and the Joint Oil Block, management's expectations regarding future exploration and development activities, market conditions, operating conditions, availability of capital, future commodity prices, access to means of transportation and capital expenditures. Actual results could differ materially due to a number of factors, including, without limitation, operational risks in exploration, development and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; fluctuations in commodity prices, foreign exchange and interest rates; the uncertainty of resource estimates and geological interpretations; risks affecting Sonde’s ability to execute projects and market oil and natural gas; risks inherent in operating in foreign jurisdictions and negotiating with foreign governments and foreign commercial parties; the ability to attract and retain key personnel; and the inability to raise additional capital. Additional assumptions and risks are set out in detail in the Company’s Annual Information Form, available on SEDAR at www.sedar.com., and the Company's annual reports on Form 40-F on file with the U.S. Securities and Exchange Commission.

Page 3: Sonde Resources Corp - Investor Presentation

Disclosure Statements

3

Although management believes that the expectations reflected in the forward-looking information or forward-looking statements are reasonable, prospective investors should not place undue reliance on forward-looking information or forward-looking statements because Sonde can provide no assurance those expectations will prove to be correct. Sonde bases its forward-looking statements and forward-looking information on information currently available and do not assume any obligation to update them unless required by law.

Zarat Economics Example – The illustrative economic evaluation example on Slides 15 and 16 (“Zarat Illustrative Economic Evaluation Scenario”) is based on the key principles of the proposed Zarat Plan of Development contained on Slides 11 and 12. The decline curve referenced on Slide 14 is based on a computer-based (Petrel and Eclipse) simulation similar to that utilized by Ryder Scott in connection with its evaluation of contingent resources for the Zarat Field effective August 8, 2013. This is an example only and is not intended to reflect the forecast cash flows of Sonde; rather, it is intended to provide an illustration of the economic impact of these assumptions based upon the terms of the Exploration Production Sharing Agreement, as amended (the “EPSA”) governing the Joint Oil Block. A copy of the EPSA is available at www.sedar.com.

Contingent Resources - In June 2011, Sonde engaged Ryder Scott Petroleum Consultants ("Ryder Scott"), an independent qualified reserves evaluator within the meaning of NI 51-101, has provided Sonde with a report (the "Ryder Scott Report") containing estimates of contingent resources as of August 8, 2013 attributable to the entire Zarat Field. The Zarat Field extends onto an adjacent license to the south in which Sonde currently has no interest. As such, development of the discovered Zarat Field will require Sonde to unitize the portion of the Zarat Field located on the Joint Oil Block with the license located on the southern border of the Joint Oil Block. Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. The contingencies that prevented the classification of the remaining recoverable quantities as reserves are economic and legal. At this time the economic status of the contingent resources assigned to the entire Zarat Field and to that portion of the Zarat Field covered by the Joint Oil Block is undetermined. Once a detailed development plan, unitization, potential markets, processing options and pricing for the products are better known, development economics for the Zarat Field will be completed. Sonde continues to work with Joint Oil and the other parties with interests in the Zarat Field on finalizing a unitization agreement and unit plan of development for the Zarat Field. Completion of these milestones is required before reserves will be assigned for the Joint Oil Block. There is a risk that these milestones may not be achieved as approval of the plan of development and agreement on unitization are outside of the control of Sonde.

Page 4: Sonde Resources Corp - Investor Presentation

Disclosure Statements

4

Contingent Resources (cont.)- The Ryder Scott Report provides an estimate of the Low Estimate (1C), Best Estimate (2C) and High Estimate (3C) contingent resources attributable to the entire Zarat Field and the portion of the Zarat Field which is located on the Joint Oil Block. "Low Estimate (1C)" is considered to be a conservative estimate of the quantity of resources that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90% probability (P90) that the quantities actually recovered will equal or exceed the low estimate. "Best Estimate (2C)" is considered to be the best estimate of the quantity of resources that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50% probability (P50) that the quantities actually recovered will equal or exceed the best estimate. "High Estimate (3C)" is considered to be an optimistic estimate of the quantity of resources that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10% probability (P10) that the quantities actually recovered will equal or exceed the high estimate. The contingent resource volumes included in the Ryder Scott Report are estimates only and should not be construed as being exact quantities. The estimates may increase or decrease as a result of future technical data (including results from Sonde's 3D seismic program), evaluation studies, and unitization interest. There is no certainty that it will be commercially viable to produce any portion of the estimated resources.

Contingent Resources Rider (1) Information is derived from the Ryder Scott Report and reflects the estimates of contingent resources as of August 8, 2013 attributable to the entire Zarat Field. The Zarat Field extends onto an adjacent license to the south in which Sonde currently has no interest. As such, development of the discovered Zarat Field will require Sonde to unitize the portion of the Zarat Field located on the Joint Oil Block with the license located on the southern border of the Joint Oil Block. (2) The contingent resource volumes included in the Ryder Scott Report are estimates only and should not be construed as being exact quantities. The estimates may increase or decrease as a result of future technical data (including results from Sonde's 3D seismic program), evaluation studies, and unitization interest. There is no certainty that it will be commercially viable to produce any portion of the estimated resources. (3) See "Disclosure Statements" for definitions of "contingent resources", "1C", "2C" and "3C".

Page 5: Sonde Resources Corp - Investor Presentation

Disclosure Statements (cont)

5

Prospective Resources – In June 2011, the Company engaged Dynamic Global Advisors Company ("DGA"), an independent qualified reserves evaluator, to assess six exploration prospects (Fisal, Hadaf, Siraj West, Siraj East, South Besmah and Zarat Deep) and to evaluate the total oil initially-in-place ("OIIP"), total gas initially-in-place (“GIIP") and the prospective resources in connection with these prospects. In July 2012, the Company further engaged DGA to improve this assessment for four prospects (Fisal, Siraj West, Siraj East and Zarat Deep) using a new 3D seismic survey obtained by Sonde in early 2012.. OIIP and GIIP is that quantity of oil or gas, as applicable, that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of oil or gas that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to “total resources”). Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery (geological chance of success) and a chance of development (economic, regulatory, market and facility, corporate commitment or political risks). The chance of commerciality is the product of these two risk components. Estimates of Prospective Resources have not been risked for the chance of discovery or for the chance of development. There is no certainty that any portion of the prospective resources will be discovered. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development or that it will be commercially viable to produce any portion of the prospective resources. Prospective resources are undiscovered resources that indicate development potential in the event the discovery is commercial and should not be construed as reserves or contingent resources. In its evaluation, DGA provided un-risked probabilistic estimates of OIIP, GIIP and prospective resources. A P90 estimate (low estimate) means that there should be at least a 90 percent probability that the quantities actually recovered will equal or exceed the low estimate. A Pmean estimate is the average from the probabilistic assessment and a P10 estimate (high estimate) means that there should be at least a 10 percent probability that the quantities actually recovered will equal or exceed the high estimate.

Page 6: Sonde Resources Corp - Investor Presentation

Sonde - Now

1

Sonde Resources

Corp

W. Canada Producing

Assets

W. Canada Exploration

Assets

N. Africa Assets

N. Africa Exploration and Development

W. Canada Development W. Canada Exploration

Sonde has been an amalgam of three different business

missions, all competing for Capital and

Human Resources

Page 7: Sonde Resources Corp - Investor Presentation

“New” Sonde – Post Marquee Arrangement

1

Sonde Resources

Corp

W. Canada Exploration

Sonde N. Africa BV

W. Canada Exploration property held for cash disposition, JV

or other strategic alternative

Pure play for N. Africa

Sonde will become a Pure Play for North Africa, initially focused on

the Exploration and Development Of the Joint Oil Block

Sonde Shareholders will also be invested in a Pure Play for oil development in Alberta, through their ownership in

Marquee Energy Ltd

Page 8: Sonde Resources Corp - Investor Presentation

“New” Sonde Assets

8

Focused, growth-oriented company with a large resource

base

Post-Marquee closing, greatly reduced G&A

>$30 MM cash balance ensures early health of new Sonde

100% WI in 867,000 acre Joint Oil Block,

with robust exploration resource

Zarat Discovery - large Contingent

Resource with development

beginning in 2014

Unique solution for producing high inert

content gas offers access to other N.

Africa projects

W. Canada exploration assets

offer future cash and / or WI upsides

After closing the Marquee Arrangement, Sonde will be a North Africa-focused Exploration and Development company, rich with Contingent and Prospective Resources. First production at Zarat will establish Sonde as a growth-oriented Operator with robust

cash flows

Page 9: Sonde Resources Corp - Investor Presentation

“New” Sonde Management Team

9

Toufic Nassif President & CEO (1)

Rene Beaumier CFO

Randy Pryor Country Manager,

Tunisia

35 years experience VP / Commercial Director for BP Libya Director of Negotiations for BP N. Africa Extensive E&P experience throughout MENA

20 years experience CFO Anglo Canadian Oil Corp VP Finance and Admin, Nexen Nexen Petroleum Nigeria Ltd Chartered Accountant

37 years experience Drilling / Completions / Production Engineering expertise Experience in both W. Canada and International operations

Sonde’s team has deep International E&P experience, with the Operations

and Business Development skills necessary to capture Sonde’s full

value potential

(1) It is anticipated that Mr. Toufic Nassif, currently President North Africa, will be appointed President and CEO of Sonde following completion of the Marquee Arrangement

Page 10: Sonde Resources Corp - Investor Presentation

Joint Oil Block

Sonde Resources Corp

Zarat Field 10

December 2013

Page 11: Sonde Resources Corp - Investor Presentation

Zarat Field

11

• ~25,000 acre salt-cored anticline overlapping the Joint Oil Block and Tunisian Zarat License • Eocene carbonate pay average 250’ thick (gas / condensate cap over black oil rim) • Vertical well test rates as high as 15 million cf gas + 1,192 bbl oil / day • Gas cap contains up to 60% inert gas (primarily CO2) • Ryder Scott 3C Contingent Resource: 90.5 MMbbl oil + 539 Bcf gas (189 Bcf sales gas) • Sonde share 50% (assuming Unit Agreement approved as is)

Page 12: Sonde Resources Corp - Investor Presentation

Zarat Plan of Development: FPSO + Subsea wells

12

Page 13: Sonde Resources Corp - Investor Presentation

Zarat Plan of Development

13

Key principles (1)

Oil + condensate production begins in 2017, peak rate 24,000 bbl / day Produced gas will be re-injected for the first 7

years, allowing for accelerated development timeline for the oil / condensate

During gas cap production, CO2 will be stripped offshore and re-injected, allowing existing area pipelines and gas plants to be utilized Lease FPSO + subsea systems allows for

dramatically reduced CAPEX Design will allow for immediate tie-in of Fisal

prospect (if proven productive), further enhancing economics of development

(1) Sonde Plan of Development as submitted to Joint Oil in November 2013; subject to approval from Joint Oil, ETAP and PA Resources.

Injector

Producer

Page 14: Sonde Resources Corp - Investor Presentation

14

Zarat Field Contingent Resource (1)

(1) See Contingent Resources Rider in Disclosure Statements

Management expects that the Zarat Contingent Resources will be converted to formal NI 51-101 3P Reserves once the Zarat Unit Agreement and Unit Plan of Development

have been approved

Page 15: Sonde Resources Corp - Investor Presentation

Zarat Production Profile (1)

15 (1) See Slide 3 for additional information

Page 16: Sonde Resources Corp - Investor Presentation

Zarat Illustrative Economic Evaluation Scenario (1)

16 (1) See Slide 3 for additional information

Page 17: Sonde Resources Corp - Investor Presentation

17

Zarat Illustrative Economic Evaluation Scenario – Assumptions (1)

(1) See Disclosure Statements, Slide 3 for additional information (2) Profit Oil Split declines in steps from 50% to 15%. The Split is based on the ratio of cumulative Second Party revenue over expenditures until 3.5x payout.

After 3.5XInitial Payout (2)

Brent Price Per Barrel 100.00$ 100.00$ First Party Share 30% (30.00) 30% (30.00) Net for Distribution 70.00$ 70.00$

Available for Cost Recovery 70% 70.00$ 70% 70.00$

IF current and carryover costs > Cost Recovery Oil 70.00 20.00

Profit Oil 50% - 15% 7.50

First Party Share (Joint Oil) 30.00 72.50 Second Party Share (Sonde at 100% WI) 70.00 27.50

100.00 100.00

Page 18: Sonde Resources Corp - Investor Presentation

Joint Oil Block

Exploration Potential of the Joint Oil Block

Sonde Resources Corp December 2013

Page 19: Sonde Resources Corp - Investor Presentation

Joint Oil Block Key Prospects

from: BeicipFranlab/Joint Oil Summary Report 2004

Gas

Oil

Hadaf

Fisal

Hadaf

Siraj West & East

Zarat Deep

19

Siraj W&E

Fisal

Zarat Deep

Total Pmean Recoverable

Resource (unrisked) = 420 MMBO +

2,231 BCF Sales Gas

(source: Dynamic Global Advisors) (1) (2) (3)

(1) The resources presented are the gross, un-risked volumes estimated for the indicated objective reservoirs without any adjustment for the Company’s working interest or encumbrances. (2) Reference is made to Disclosure Statements for definitions and further information. (3) “Oil” includes black oil and gas cap condensate; “Gas” is hydrocarbon gas and does not include inert gas content.

Page 20: Sonde Resources Corp - Investor Presentation

Fisal Prospect

20

Salt

Zarat Fisal

Fisal is a high-quality prospect with Eocene oil and Upper Cretaceous gas / condensate potential, immediately adjacent to Zarat Field

Page 21: Sonde Resources Corp - Investor Presentation

Fisal Resource (source: Dynamic Global Advisors) (1) (2) (3)

21

(1) The resources presented are the gross, un-risked volumes estimated for the indicated objective reservoirs without any adjustment for the Company’s working interest or encumbrances. (2) Reference is made to Disclosure Statements for definitions and further information. (3) “Oil” includes black oil and gas cap condensate; “Gas” is hydrocarbon gas and does not include inert gas content.

Page 22: Sonde Resources Corp - Investor Presentation

Hadaf Prospect

22

A A’

Carbonate Build-ups

Hadad is 35 sq. km. simple closure with Upper Cretaceous oil potential, in close proximity to the giant El Bouri oil complex in offshore Libya

Page 23: Sonde Resources Corp - Investor Presentation

Hadaf Resource

23

C

A’ B

B’

A

C’

Hadaf has 35 sq km inside simple closure, with easterly bounding fault re-forcing west-east dip

Sonde has only estimated resource potential for Douleb and Fahdene reservoirs;

prospect could include other horizons and be substantially larger

(1) The resources presented are the gross, un-risked volumes estimated for the indicated objective reservoirs without any adjustment for the Company’s working interest or encumbrances. (2) Reference is made to Disclosure Statements for definitions and further information. (3) “Oil” includes black oil and gas cap condensate; “Gas” is hydrocarbon gas and does not include inert gas content.

(source: Dynamic Global Advisors) (1) (2) (3)

Page 24: Sonde Resources Corp - Investor Presentation

Siraj W. Prospect

24

Salt

Siraj W. is a 53 sq. km. faulted anticline with Eocene oil and Upper Cretaceous gas / condensate potential

Carbonate Build-ups

Page 25: Sonde Resources Corp - Investor Presentation

Siraj E. Prospect

25

Salt

Siraj E. is a 12 sq. km. faulted anticline structurally similar to Zarat Field

Page 26: Sonde Resources Corp - Investor Presentation

Siraj W & E Resource (source: Dynamic Global Advisors) (1) (2) (3)

26

(1) The resources presented are the gross, un-risked volumes estimated for the indicated objective reservoirs without any adjustment for the Company’s working interest or encumbrances. (2) Reference is made to Disclosure Statements for definitions and further information. (3) “Oil” includes black oil and gas cap condensate; “Gas” is hydrocarbon gas and does not include inert gas content.

Page 27: Sonde Resources Corp - Investor Presentation

Anticipated Operations Timeline

27

Page 28: Sonde Resources Corp - Investor Presentation

December, 2013

W. Canada Oil Resource Plays

Page 29: Sonde Resources Corp - Investor Presentation

Sonde Oil Resource Plays

• Theme: Carbonate Oil Resource – Wabamun: 51,100 net acres (160-320 net Hz locations) – Duvernay: 47,050 net acres (290 net Hz locations) – All 100% WI & Operated, no AMI’s or JV’s, ~85% have been

purchased last 18 months, no expiry issues

• Economics – Wabamun: Mississippi Lime analog, $2.5-$3.5 MM / well,

250k- 1,000k Boe / well – Duvernay: Bakken analog, $8.5-$12.5 MM / well, EUR 500k-

1,500k Boe / well

Alberta

Whitecourt

1

Peace River

Wabamun

Duvernay

Page 30: Sonde Resources Corp - Investor Presentation

Duvernay Oil Resource Play – Summary

• Inter-bedded Leduc fore-reef talus and outer shelf / slope / deep water hybrid deposits form Bakken-like resource system

• Many key wells mis-classified as Leduc or Beaverhill Lake; Sonde has built new correlation framework and done extensive rock properties analysis

• Shale permeability is 200-600 nd and unlikely to produce oil sustainably, but inter-bedded talus contains 3-15% porosity and multi-millidarcy permeability

• Production is low GOR 38-40 API light sweet crude

• Several historical vertical-well producers exist, with IP ranging from 20 bbl / d to 550 bbl / d. One recent HZ well test rate 800 boe / d (75% oil)

• Commercial HZ well EUR unknown, but Bakken analogy would allow for 250k-1,000k BOE (P50 500k BOE), cost range $8-$12 MM

30

Page 31: Sonde Resources Corp - Investor Presentation

Sonde Duvernay Lands

31

Sturgeon Lake

Windfall

~47,050 Net Acres 100% WI

Page 32: Sonde Resources Corp - Investor Presentation

Duvernay Hydrocarbon Type & Sweet Spots (sweet spots = hot colors = high Phi*H values)

Sonde Land – Sturgeon Lake

Sonde Land – Windfall

32

Sold 7/2013

Key Tests and Producers Oil

Wet Gas

Dry Gas

Page 33: Sonde Resources Corp - Investor Presentation

Wabamun Play – Characteristics

• 400,000 ac sweetspot with average oil column height of 120’

• Commercial characteristics are well-established in vertical wells; ability to cost-effectively increase EUR’s with HZ wells remains unproven, but program is infill-oriented in terms of risk profile.

• Sonde has 81 moderate to high potential sections at Eaglesham / Cindy (162-324 HZ locations)

• Key upsides:

– Through existing well control, Sonde has identified a sweet spot containing unusually robust Upper Wabamun porosity, with 3D available over entire sweet spot (good potential for lower risk, higher EUR than conventional Wabamun play)

– HZ wells will likely not be frac’d (and potentially not cased), lowering CAPEX requirements

Page 34: Sonde Resources Corp - Investor Presentation

Sonde Wabamun Lands

34

~51,000 Net Acres 100% WI

Belloy D-1B Wabamun Pool

Cindy Wabamun Pool

Eaglesham Wabamun Pool

Belloy D-1A Wabamun Pool

Sonde 16-25 Vertical Producer

Golden Key 2013 Horizontal Disovery

Page 35: Sonde Resources Corp - Investor Presentation

Wabamun Play Concept

Dawson Creek Fault (NE Seal)

Producing Area (400,000 acres)

Mean PEF (bright = Dolomite)

Scale: 1 township

Reservoir: Subtidal Dolomite and Limestone

Trap: Sharp transition to tight limestone at Dawson Creek Fault creates updip barrier; sharp transition to limestone at Leduc reef margin and area to NE create lateral barriers. Some small simple closure exists but does not appear to play a role in trap.

Charge: Sourced from the overlying Exshaw (Bakken) shale; sweet spot is mildly overpressured

Leduc Reef Margin

Initial Reservoir Pressure (Bright = overpressure)

Page 36: Sonde Resources Corp - Investor Presentation

P50 Vertical Well: 180 M bbl oil Completions: 99% acid wash

EUR (bbl) <30,000

30-60,000

60-125,000 125-250,000 250-500,000

>500,000

Wabamun Production Characteristics (Northern Sweet Spot)

Scale: 1 township

120,000 bbl vertical

650,000 bbl vertical

Page 37: Sonde Resources Corp - Investor Presentation

Message to Shareholders

37

• Through the previously-announced Marquee Arrangement, Sonde intends to better focus and leverage its assets, capital programs and human assets

• “New” Sonde will require substantial capital to develop Zarat and meet Exploration obligations. Sonde will pursue some combination of JV’s, equity rounds, and debt financing to acquire this capital

• The cash + shares option elected by Sonde under the Marquee Arrangement is critical to give “New” Sonde a solid foundation for the fundraising effort

• The Sonde Board has unanimously approved the Marquee Arrangement, and recommends that Shareholders vote in favor of the Arrangement. Copies of the Notice of Special Meeting and Management Information Circular are available on SEDAR and voting instructions are contained in the Management Information Circular

• “New” Sonde has a substantial growth proposition through its rich portfolio of Development and Exploration assets, a near-term plan to develop Zarat Field (and its substantial cash flow), and a near-term plan to assess the Exploration potential of the Joint Oil Block.