Solimar Drills Ahead at Guijarral Hills

Solimar announced that drilling operations at the 76-33 well at the Guijarral Hills project in the San Joaquin Basin is progressing as planned. As of Tuesday morning AEDT the 76-33 well was drilling ahead and is currently at 5,475 feet. The well has several targets between 7,000 and 10,200 feet hence the first targets could be reached this
coming week.

Background to 76-33

The Graham Drilling Services Rig-5 rig will drill to a planned total depth of 10,400 feet. The drill program is expected to take approximately 35 days to drill and will evaluate 4 sandstone reservoir targets that were productive for oil in the Guijarral Hills field. The prospect being drilled is mapped based on well control as a potential undrained extension of the Guijarral Hills field which has historically produced over 50 million barrels of light oil.

Solimar is targeting a recoverable light oil resource of 5 million barrels with upside for 25 million barrels recoverable within the overall 2,560 acre project area.

The targeted sandstone reservoirs are predicted at depths between 7,000 and 10,200 feet. If successful up to 12 potential development well locations are indicated. Based on analysis of productive well histories in the Guijarral Hills field, pump assisted initial production rates of up to 400 barrels of high quality oil per well are targeted.

The 76-33 well is mostly being funded by a farmout to USA based Blast Energy services who are funding approximately 2/3rds of the cost of the well and are making a cash contribution towards past costs.