Solimar to Commence Flow Testing Prog. at Guijarral Hills

Blast announced that a completion rig has moved on location to commence the flow testing program on the Solimar Energy 76-33 well in the Guijarral Hills Field Area located in Fresno County, California. Under the completion plan, Solimar Energy, the operator of the well, plans to perforate and flow test up to three zones within the Gatchell, Avenal and Leda intervals. A total of potential net pay of over 135 feet in six separate intervals was previously reported for the well. The three intervals that have been selected for testing are those deemed most likely to potentially produce commercial quantities of oil.

"We acquired our interest in the Guijarral Hills Project with a target of achieving five million barrels of recoverable light oil resources. We are encouraged by the shows encountered in this first well and are looking forward to the results of this testing program," stated Michael Peterson, acting President and Chief Executive Officer of Blast.

The testing program will involve perforating the selected interval followed by periods when the well will be flowing or shut-in to measure the pressure response and to evaluate fluid properties. The test sequence will involve testing the deepest interval, the Lower Gatchell, first and then working up the well, as necessary, to the shallower Avenal and Leda objectives.

The three intervals selected to be tested have all been productive in the adjacent Guijarral Hills field. Each zone had increased shows of hydrocarbons while drilling and were indicated on wireline logs. While such petro-physical analysis indicates that hydrocarbon pay is present, the flow testing program is necessary to determine whether the reservoir quality will meet commercial production rates.

The testing program for the three intervals is expected to have a gross cost of approximately $530,000, although the total cost will depend on the results and whether any of the intervals require additional procedures, such as fracture stimulation. While Blast has paid two-thirds of the cost to date, Blast is now heads up on this project and will be responsible for 50% of the costs going forward.


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