Solimar Energy Limited Common Shares V.SXSH

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Solimar Energy Limited: Sale of Tejon Ranch Interests

 

 

MELBOURNE, AUSTRALIA--(Marketwired - Aug. 12, 2013) - Solimar Energy Limited (TSX VENTURE:SXS)(ASX:SGY) ("Solimar" or "the Company") is pleased to announce the sale of 47.5% of its 57.5% working interest along with operatorship in the leases located in the Tejon Ranch area of the San Joaquin Valley to its partners for a consideration of US$250,000. Under the terms of the agreement Solimar has sold 28.75% of its 57.5% working interest in the leases to Avere Energy Corp. ("Avere") and 18.75% of its 57.5% working interest and operatorship in the leases to North American Oil and Gas ("NAMG"). The resultant working interest division in the leases is Solimar 10%, NAMG 40%, and Avere 50%.

The sale reflects the continued efforts of the Company to focus its resources on the commercialization of the Kreyenhagen Field, Temblor Sandstone heavy oil play. The first well of a three well drilling program, (K 2-33) reached a total depth of 1,472 feet measured depth on July 20 and was subsequently logged and cased. The well was directionally drilled up to a 48 degree angle and encountered approximately 600 feet (measured depth) gross interval of the Temblor Sandstone. The second of three wells, K 7-33, is anticipated to spud in mid-August. This well will be vertical and have whole core cut across the Temblor Formation to further investigate reservoir and fluid properties and calibrate wire line logs.

K 2-33 will be completed and placed on production, using a completion rig in due course, to obtain reservoir fluid samples and to evaluate the production performance of a deviated well on primary production. The Company plans to include the well in the upcoming Phase II thermal (steam) pilot test currently scheduled for early 2014.