SOLIMAR ENERGY LIMITED - ASX: SGY

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Description

Solimar Energy Limited (“Solimar Energy”) is a public listed company on the Australian Securities Exchange (ASX Code: SGY) based in Melbourne, Australia. Solimar Energy's strategy is to focus on oil and gas exploration, commercial development and production in the onshore hydrocarbon regions of the Sacramento, Ventura and San Joaquin Basins of California, USA.

Solimar Energy currently has oil production at the Maricopa Project in the San Joaquin Basin and until recently gas production at the Southeast Lost Hills Project, also in the San Joaquin Basin. Solimar Energy has a 50% working interest at Maricopa and a 100% interest at Southeast Lost Hills and is operator in both of these projects.

The Southeast Lost Hills Project (50% working interest and operator), San Joaquin Basin, California

The Southeast Lost Hills Project (SELH)is located in the San Joaquin Basin, in the southern part of California (inland and north of Los Angeles). Within this project, Solimar Energy has a 50% interest in the Block B lease, including the Jack Hamar wells: 1-13; 2-13; 3-13; 1-12; and associated gas pipeline infrastructure and gas production equipment.

Gas Production

The first well tested at Southeast Lost Hills in December 2007 was the Jack Hamar 3-13 well which flowed gas at 633,000 cubic feet per day over a 48 hour testing period at a tubing pressure of 1,185 psi on a 6/64 inch choke. Subsequently, an independent reservoir engineering company, Resources Services International Inc., estimated that the recoverable gas based on flow tests and reservoir performance for only this well is between 0.20 to 0.70 BCF of gas.

The Maricopa Project (50% working interest and operator), San Joaquin Basin, California

Solimar Energy has a 50% interest in a 120 acre lease located two miles east of the town of Maricopa within the southeast end of the Midway-Sunset Oil Field (refer to Figure 3). The Midway Sunset field is one of the largest onshore oil fields in the world with reserves in excess of three billion barrels. The lease already contains five wells completed as producers with close to one million barrels being produced from the lease and some 2.2 million barrels from immediate adjoining leases since 1930. The joint venture has identified several well locations on the lease. The wells will be drilled on what is believed to be the undeveloped portion of the lease between existing wells in the east of the permit. In addition, a horizontal well may be drilled in the west of the lease which has had no previous drilling activity.

Oil Production

In March 2008, the Wellington Maricopa #6 well was the first well to be drilled at the Maricopa Project. This well was successfully production in late April 2008 and produced oil at an average daily rate of 35 barrels of oil per day and gas was stabilized at an average daily rate of 120,000 cubic feet per day.

The Silverthread Project (18.5% to 20% working interest), Ventura Basin, California

Solimar Energy originally secured a 20% working interest in 400 acres, and subsequently an 18.5% working interest in a further 200 acres in the Silverthread Project, which is located in the prolific Ojai oil and gas producing area in the Ventura Basin, about 100 kilometres northwest of Los Angeles, California (refer to Figure 1). This area contains several producing fields which include Silverthread, Sisar Creek, Lion Mountain, Sulphur Mountain and Sulphur Crest. The Silverthread Project is primarily targeting a deeper Monterey sand reservoir adjacent to the Silverthread oil field and the shallow Saugus sand reservoirs near large oil seaps. The Silverthread Project has estimated potential P50 recoverable resources of approximately 7 million barrels of oil and over 15 billion cubic feet of gas on the 600 acre position acquired.

The Deer Creek Project (50% working interest and operator), San Joaquin Basin, California

Solimar Energy currently has a 50% interest in the Deer Creek Project, located on the eastern side of the oil and gas rich San Joaquin Basin. An existing active oil field 12 miles to the southeast and along structural trend is a direct analog for the trap style and objective reservoirs at Deer Creek. Another active oil field located 8 miles to the northeast of Deer Creek is productive in stratigraphic formations slightly younger than the objective reservoirs at Deer Creek. This portion of the San Joaquin is relatively under-explored as compared to the basin as a whole, yet a discovery at Deer Creek would simply constitute the extension of a known productive trend of analogous oil fields.

Mine For

oil, gas

Location of operation(s)

USA

Address

566 Elizabeth Street
MELBOURNE, VIC, AUSTRALIA

Phone

(61 3) 9347 2409

Email

Website

http://www.solimarenergy.com.au

Last Updated

01/03/2010