Pedevco Corp. (PED)

[verdiking]

I guess we picked the wrong hole.

Solimar Energy Limited (ASX:SGY.AX - News) (TSX VENTURE:SXS.V - News) is pleased to provide the following update regarding the ongoing production testing operations at its Paloma Deep discovery, located in the San Joaquin Basin, onshore California.

Two production tests have been conducted to date, initially targeting two of the eight zones previously identified (refer to diagram below), being the Fruitvale Shale and Lower Stevens Sandstone formations. Hydrocarbons have flowed to surface, unassisted at maximum rates of 1.9 MMCFD (million cubic feet per day) of gas, and 226 BOPD (barrels of oil per day) of light oil/condensate. The tests have been limited by downhole mechanical difficulties, due to debris obstructing and hindering the flow of hydrocarbons and preventing stabilised rates of production being achieved. At this stage these operational issues have also prevented the joint venture from determining which interval delivered the produced hydrocarbons.