Solimar to Open 1st Zone in Guijarral Hills Flow Test Prog.

Solimar announced that flow testing operations using the Orchard Petroleum Rig #2 will commence in the next 24 hours when the deepest zone selected for testing will be perforated and opened for flow into the well bore.

Perforations will be made between 10,370 feet and 10,380 feet within the Lower Gatchell Sandstone and then flow tested to determine whether commercial production is feasible.

The perforations are being restricted to a preferred 10 foot interval although additional potential hydrocarbon pay may be present in the Lower Gatchell Sandstone based on the wireline log data. Initial results from the Gatchell test may be reportable by late next week.
Background to Testing Program

The program will test selected intervals within the following 3 formations:

Formation Perforation Interval (feet)
Leda Sandstone 8,533-8,540
Lower Avenal Sandstone 9,962-9,982
Lower Gatchell Sandstone 10,370-10,380

 The three intervals to be tested have all been productive in the adjacent Guijarral Hills oil and gas field. Each of the zones were characterized by increased shows of hydrocarbons recorded while drilling and anomalies on wireline logs. Petrophysical analysis indicates hydrocarbon pay is present however the flow testing program is necessary to determine whether the hydrocarbon saturations and reservoir quality will support commercial rates of flow.

A total potential net pay estimate of over 135 feet in six separate zones was previously announced for the well. The zones that have been selected for testing are those deemed most likely to provide a definitive series of tests. If successful then the likelihood will be increased that other zones identified with potential pay can also be successfully tested.

Testing of each reservoir will involve perforation of the designated intervals followed by periods of flow and shut in to measure flow rates, pressure response and evaluate fluid properties. The sequence will involve testing of the deepest interval (Lower Gatchell) first and then working up the well as necessary to the shallower intervals.

The testing program cost for the three intervals has been budgeted at approximately US $530,000 although final costs will depend on results and whether these necessitate further procedures such as fracc stimulation.

ASX listed partners in the Guijarral Hills project, at post drill equities will be:

  • Solimar Energy LLC (Operator) 35%
  • Neon Energy Limited (ASX: NEN) 15%
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