Solimar Energy says that drilling operations are to commence this week at the Company's Kreyenhagen Heavy Oil Project Area in the San Joaquin Basin, California.

■ The Company is commencing drilling operations for three wells in the Kreyenhagen Heavy Oil Project Area under the Phase I program. ■ The wells, the first of which is expected to spud on July 11, will gather data (logs, core and reservoir fluids) to optimize the design of a pilot steam test in the heavy oil Temblor sands. ■ The planned three wells will be completed for future use for either oil production or steam injection. ■ The pilot steam test is anticipated to begin following the three well program and positive data modelling, and is expected to be followed by a full field development. ■ The key permit for the steam enhanced pilot project at the Kreyenhagen Field was previously submitted and is approved.

Tags: Solimar Energy Limited