Solimar spuds Guijarral Hills 76-33 well
Highlights
- The Solimar 76-33 well at Guijarral Hills has commenced drilling.
- 35 day drilling program will test 4 separate sandstone reservoir targets.
- Targeting 5 million barrels recoverable oil resource with upside for 25 million barrels in 2560 acre project area.
- Nearby existing infrastructure should ensure rapid commercialisation in the event of success.
- Major portion of well cost farmed out to third party.
- Solimar Operator and retaining 35% post drill.
- Drill program a pre cursor to other Solimar 2011 activity which includes drilling and production testing programs planned at Kreyenhagen, SELH and Paloma Deep.
Solimar Energy Limited (ASX: SGY) ("Solimar") is pleased to announce the Solimar 76-33 step out well on the Guijarral Hills project spudded late on Monday 21 February Australian Time.
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.
The Company will provide progress updates during the drilling program as various program milestones are achieved.
Commenting on the drill program getting underway Solimar Chief Executive John Begg said:
John Begg, Chief Executive Officer Comments
"Now that our California (Ventura) based operations team have the Guijarral Hills drill program underway, corporately we will focus on firming up the timetable for the Company's other priority 2011 drilling and field production testing programs. This year will be a very active year for
Solimar with activity scheduled across most of our project areas. These include Kreyenhagen - where there is both a large existing shallow oil accumulation that requires testing using modern technologies and a high potential, large volume fractured oil shale play. SELH - where we want to drill a new well to appraise the northern extent of that shallow gas accumulation. Paloma deep an emerging project that has excellent potential for stacked sandstone and fractured oil shale reservoirs in a large anticlinal closure."
ASX listed partners in the Guijarral Hills project, at post drill equities will be:
Solimar Energy LLC (Operator) 35%
Neon Energy Limited (ASX: NEN) 15%
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