MELBOURNE, AUSTRALIA--(Marketwired - Aug 12, 2013) - Solimar Energy Limited (TSX VENTURE:SXS)(SGY.AX) ("Solimar" or "the Company") is pleased to announce the sale of 47.5% of its 57.5% working interest along with operatorship in the leases located in the Tejon Ranch area of the San Joaquin Valley to its partners for a consideration of US$250,000. Under the terms of the agreement Solimar has sold 28.75% of its 57.5% working interest in the leases to Avere Energy Corp. ("Avere") and 18.75% of its 57.5% working interest and operatorship in the leases to North American Oil and Gas ("NAMG"). The resultant working interest division in the leases is Solimar 10%, NAMG 40%, and Avere 50%.
The sale reflects the continued efforts of the Company to focus its resources on the commercialization of the Kreyenhagen Field, Temblor Sandstone heavy oil play. The first well of a three well drilling program, (K 2-33) reached a total depth of 1,472 feet measured depth on July 20 and was subsequently logged and cased. The well was directionally drilled up to a 48 degree angle and encountered approximately 600 feet (measured depth) gross interval of the Temblor Sandstone. The second of three wells, K 7-33, is anticipated to spud in mid-August. This well will be vertical and have whole core cut across the Temblor Formation to further investigate reservoir and fluid properties and calibrate wire line logs.
K 2-33 will be completed and placed on production, using a completion rig in due course, to obtain reservoir fluid samples and to evaluate the production performance of a deviated well on primary production. The Company plans to include the well in the upcoming Phase II thermal (steam) pilot test currently scheduled for early 2014.
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Reader Advisory: Forward-looking statements
This news release contains forward-looking information relating to the sale of a working interest in the Tejon Ranch leases, planned development and exploration activities on the properties in which the Company has interests, and other statements that are not historical facts. Such forward-looking information is subject to important risks, uncertainties and assumptions. The results or events predicated in this forward-looking information may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on this forward-looking information.