Wireline logging indicates potential hydrocarbon pay zones at Guijarral Hills
HIGHLIGHTS
? Wireline log operations are complete and preparations are being made to run completion
casing preparatory to conducting a flow testing program.
? Initial analysis indicates some 50 - 66 feet of potential hydrocarbon pay has been encountered.
? The wireline data shows log anomalies over each of the main reservoir units which include the
Allison, Leda, Lower Avenal and Lower Gatchell Sandstones. These are coincident with zones
over which hydrocarbon shows were recorded while drilling.
? Although there is limited comparable wireline log data available for historic offset wells in the
Guijarral Hills field the log anomalies observed in the 76-33 well are comparable to those in
zones that produced oil and gas in offset wells.
? Once the 7 inch casing has been run the Paul Graham #5 rig will be released and a smaller
testing rig brought in for the flow testing program.
Solimar Energy Limited (ASX: SGY) (“Solimar”) is pleased to announce that wireline logging operations have
been completed and 7 inch completion casing is being run preparatory to conducting a flow testing program.
The planned suite of resistivity and porosity measuring wireline logs were run plus one gun of sidewall cores.
Further logs including additional sidewall cores could not be acquired due to deteriorating hole conditions and
the decision was made to run the casing and protect the zones of interest for further evaluation by the flow
testing program.
Preliminary analysis of the wireline data shows resistivity anomalies associated with the main reservoir targets
in the Allison, Leda, Lower Avenal and Lower Gatchell Sandstones with porosities generally measured in the
14% to 20% range. Higher porosities up to 30% are indicated within the Avenal Sandstone. Such porosities are
believed to be consistent with productive intersections of these sandstones in the adjacent Guijarral Hills field.
No quantitative information is available as yet about the permeability of the sandstones.
Solimar Energy Limited
Each of the main sandstone targets was confirmed at close to the predicted depth with potential individual
hydrocarbon pay intervals ranging from 10 feet to 28 feet in thickness.
The Leda Sandstone was thinner than predicted at this well location which may have a negative effect on the
reservoir quality and flow potential of that zone in the well. However if there is encouragement from the test
program then there are locations in the prospect area where thicker sand development is mapped.
The Avenal Sandstone which exhibited the best hydrocarbon shows while drilling also showed extensive cross
over on the neutron – density porosity logs which may be indicative of gas saturation and was used to estimate
the potential net pay in that zone.
In addition to the above a number of other zones of interest were identified for which the Solimar technical team
has less background information and will need to be examined further to determine whether the data indicates
the presence of hydrocarbons or not.
A more complete evaluation of the wireline logs with further reference to the offset well data will be carried out
to determine how many zones will be tested and over what intervals.
It is necessary to conduct a flow test program to determine whether the potential hydrocarbon pay zones have
high saturations of hydrocarbons and the capacity to flow at commercial rates.
Once the casing has been run, the well will be suspended and the large Paul Graham Rig # 5 released from
site. These operations are likely to take approximately 5 days after which a smaller testing unit will be brought to
site for the flow testing program. Such testing units are readily available as the project location is less than 1.5
hours drive from the city of Bakersfield which is the main oil services centre in the San Joaquin Valley.
Background to 76-33
The 76-33 well was programmed to drill to a planned total depth of 10,400 feet. The drill program 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 were 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 continue to provide progress updates during the drilling program as various program
milestones are achieved.
Solimar Energy Limited
Figure 1: Guijarral Hills project Location Map
Partners in the Guijarral Hills project, at post drill equities will be:
Solimar Energy LLC (Operator) 35%
Other Partners 65%
Yours sincerely
John Begg
Chief Executive
Solimar Energy Limited
COMPETENT PERSONS STATEMENT
The information summarized in this report has been prepared by Robert Hoar M.S. (Geology) who is a
petroleum geologist with over 30 years’ experience within the o
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