Somo Inc. (OTCQB: SMMO) has entered into a purchase and sale agreement with Enterprise Oil and Gas Ltd., a Delaware company, to purchase all of its California oil and gas assets in the Esperanza oil field.
SMMO has acquired the assets by issuing 637,000 common shares. The acquisition is expected to close April 16, 2016
The Esperanza oil field is in the northeastern corner of Orange County. It was discovered by Shell Oil Co. in 1956. Cumulative production from the field is estimated to be 1,371,000 bbl as of Dec. 1, 2015. The original volume of oil in place is estimated to be 10,500,000 bbl. The reservoir calculations show that the field's ultimate recovery should reach 24% of the oil in place or 2,520,000 bbl. This leaves nearly 1,084,000 bbl of oil recoverable by primary methods and provides SMMO the incentive for additional development drilling.