Solimar Production Testing Lighter Oil Pool in Kreyenhagen Oil Field; Shares Up 20% Late Morning
Solimar Energy (SXS.V) today provided an update for its Kreyenhagen shallow oil field redevelopment project in the San Joaquin Basin, California. The Company now has initiated long term primary production in the field and confirmed the presence of a potentially significant down-dip, lighter oil pool.
Based on the encouraging initial production testing of the Temblor Sandstone which has produced at unstimulated primary production rates of 4-15 BOPD, the Company has put the 4-33 well on a long term production test.
Integration of the newly obtained well data with the Temblor sandstone geologic model confirms that the 4-33 well is producing from a down-dip zone of lighter oil (17Â° API gravity) that has not previously been produced. The identification of this zone offers the potential for multiple additional locations along strike and for potential exploitation by higher flow rate deviated or horizontal wells.
Solimar is planning by year end to production test the Temblor oil reservoir in a third well (2-32), which is currently suspended awaiting re-entry, in the northwest section of the field.
Close to 1.5 million shares have changed hands.
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