Solimar Posts SELH Production Results, Prepares for '09 Drilling Program
Solimar has announced that the Southeast Lost Hills (SELH) Project has recently achieved production rates of approximately 400,000 cubic feet of gas per day at a stable gas wellhead pressure of 1,000 psi.
Initial production from the Jack Hamar 3-13 well at the SELH Project started out on Friday, December 5, 2008 (Pacific Coast Time, USA) at a rate of approximately 200,000 cubic feet cubic feet of gas per day. Cumulative gas sales up to January 8, 2008 (Pacific Coast Time, USA) was approximately 11.3 million cubic feet cubic feet. Assuming gas production rates in the range of 300,000 to 400,000 cubic feet per day, the estimated value for Solimar Energy's share (after royalty payments) is approximately US$19,000 to US$25,000 per month (approx.
A$27,000 to A$36,000 per month, assuming AUD/USD = $0.70).
The Joint Venture is currently preparing for its SELH drilling and testing program during the first half of 2009. This program involves selecting a new prospect to drill from available seismic data as well as testing at least one additional interval in wells which have already been drilled.
The Chairman of Solimar Energy, Frank Petruzzelli, said, "Revenues generated from gas production at the Southeast Lost Hills project will add to those revenues from the Maricopa Project and will provide an important source of cashflows moving forward. We are also hopeful of adding reserves and production volumes through new drilling opportunities at both Maricopa and the Southeast Lost Hills area. The development and commercialization of any new gas discoveries will be made easier by the infrastructure that we have now established at the Southeast Lost Hills Project."
Solimar Energy's wholly-owned US subsidiary, Livingstone Energy, Inc., is Operator in a 50/50 joint venture with Quest Petroleum NL in the Southeast Lost Hills Project.