Solimar Energy Limited as operator has been active on the Kreyenhagen Trend Prospect:
All Kreyenhagen Trend leases have been renewed with the first lease requiring payment at end of 2012 - Approximately $10,000 of lease payments will be due from Grid petroleum Corp in October 2012 as per the 2nd settlement agreement negotiated last fall.
According to the terms of the 2nd settlement agreement, Grid Petroleum Corp is carried for all lease payment expenses through September 1 of 2012. Several of the leases required renewal during the last quarter of 2011 and the first quarter of 2012. Pursuant to the terms of the January 20, 2011 Asset transfer agreement and to the November 21, 2011 amendments of the January agreement, the company has a carry of all lease payments during this period. Several of the mineral rights owners required 2 years of pre payment lease payments with one mineral rights owner requiring 3 years of pre payments to extend. Grid Petroleum Corp was carried by Solimar Energy Limited for these lease extensions.
DRILL SITE SELECTION KREYENHAGEN TREND :
6 wells have been submitted to the State of California for permitting.
Bawden 1-24 – The well that Grid Petroleum Corp has a Carried Interest or Farm-in well where Grid Petroleum Corp will not have any expenses and is carried 100%. Target Zone: Temblor Test
Vintage 1-17 - Temblor Test
Vintage 1-21 - Temblor Test
Den Hartog A-1 - Avenal Test
Den Hartog A-2 - Avenal Test
Den Hartog A-3 - Avenal Test
The Company is pleased to announce that it has determined the primary asset of the company, the 4,000 acre Kreyenhagen Trend leases, contain the same target zones of production as the neighboring Kreyenhagen Ranch.
These target zones consist of the heavy oil in the upper Temblor and the Unconventional Shales, of the Kreyenhagen and the Monterey that continue to trend North and South from the Kreyenhagen Ranch Field.
Initial estimates indicate that there exists 82,000,000 BOOIP (Eighty Two Million Barrels Oil In Place). The Company currently holds a 50% Working Interest in the 4,000 acres providing an estimated 41,000,000 BOOIP to the Company’s Interest.
Using a P10 valuation of the Oil in Place reserve calculation and assuming a recovery rate of 10% indicating the volume of recoverable oil at an estimated 4,100,000 Barrels of Oil.
