Jordan During FY2007, Sonoran finalized a Production Sharing Agreement (PSA) for the Azraq block in Jordan. The Azraq block sits on the same trend as several other productive basins in the Middle East, yet remains relatively under-explored with limited use of modern seismic, drilling and production technology. The PSA covers an area of approximately 11,250 square kilometers (over 2.8 million acres) offering a number of exploration plays. The agreement has been signed by the King and ratified by the National Assembly of Jordan. The company has entered into an agreement with an industry partner who can work with us to fully seize the potential of this asset and allow us to focus our capital and management’s attention on growing our US operations. The Azraq activities are still in the developmental phase, but an operating vehicle has been formed and is currently acquiring staff and preparing an exploration program. Sonoran is the formal majority owner of the operating vehicle, but funding and day to day management of the work program will be provided by partners. The funding arrangement allows Sonoran to limit its operational risk while retaining a portion of the upside potential.
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