BrewBilt Brewing Co (BRBL)

[coolcoins]

And just wait till Calif. is drilled.. I thought I'd repost the latest update from our JV partner in the Kreyenhagen Shale play. This really gets me excited.

Solimar Energy Limited provides the following update of oil and gas industry activity relevant in particular to the Company’s 84% to 100% owned and operated Kreyenhagen project in the northwest San Joaquin Basin, California where a potentially significant oil shale resource has been independently assessed in the project area near to available well control*. Extrapolating from this study, using the Company’s own well data and that published by the USGS**
Solimar believes that thick oil shales of equivalent richness are likely to be present over more than half the Company’s approximate
14,000 gross acre land position.

· The US Office of Energy Administration (a division of the US Government Office of Energy) estimates that almost 2/3rds
(64%) of all the oil shale resources in the contiguous United States are located in California***. Those same published
statistics show that the San Joaquin Basin, Solimar’s area of focus, is in turn the volumetrically richest of the California oil
shale basins. The two main oil shales are the Monterey Shale, the subject of ongoing production testing at Solimar’s
Paloma project and the Kreyenhagen Shale, which is thick and extensive throughout much of the Company’s Kreyenhagen
Project acreage.
· Over the past two years Solimar has built a strategic acreage position targeting the oil shales in the northern part of the San
Joaquin Basin with particular emphasis on the Kreyenhagen Shale on the flank of the Basin where it is not too deeply
buried and should not be expensive to exploit. The shale formation outcrops to the west in the project area and plunges
down to approximately 11,000 feet in the east. Most of the Solimar acreage occupies a position where the shale has very
rich oil source rock characteristics as published by the USGS. Total Organic Carbon or TOC’s averaging 5.4% and
Hydrogen Index (HI) up to 726 have been measured from an approximately 150 feet thick zone ( for which there is available
core data) near the top of the shale in wells in the project area. The shale formation is pervasive over most of the project
thickening to more than 1,000 feet thick on the east side of the acreage.
· A recent, scoping level independent assessment for a nominal 640 acre section (1 square mile) near well control in the
Company’s acreage by Sproule Unconventional Limited* resulted in estimates of undiscovered light oil resources or
Petroleum initially in Place (“PIIP” refer Appendix A) ranging 21.7MMBBLs (Low Case), 35.9MMBBLs (Best Case) to 59.4
MMBBLs (High Case) for that section of land. Using these unrisked estimates as a basis, combined with the thick,
pervasive nature of the oil shale within the area there is potential for a large, as yet untapped light oil resource in the
Company’s acreage. Solimar believes that more than half of its approximate 14,000 gross acres (10,000 acres of which is
held under a 100% owned, single, long term lease) is prospective for the oil shale. Sproule further considered that the
Kreyenhagen Shale is a viable exploration target with potential for development with horizontal well technologies. These
technologies, now standard for oil shale reservoirs elsewhere, are yet to be tried in the project area or, as far as the
Company is aware, in the adjacent fields that are producing light oil from vertical wells. The principal geological risks were
deemed by Sproule to be reservoir quality and pervasiveness of fracturing.
Major Oil companies have been aggressively expanding their portfolios within the Kreyenhagen oil shale play fairway.

http://www.solimarenergy.com.au/documents/120307_Cal_Oil_Shale_Activity_Final.pdf