Solimar Energy provides the following update for the Company's 100% owned Kreyenhagen shallow oil field redevelopment project in the San Joaquin Basin, California.

As a follow-up to the previous announcements of establishment of production testing and a 3,101% increase in Contingent Recoverable Resource (C2 - Best Estimate) attributable to the Temblor Sandstone, the Company now has initiated long term primary production in the field and confirmed the presence of a potentially significant down-dip, lighter oil pool.

Will Satterfield, CEO of Solimar, commented "We are pleased that the initial round of production testing in the Temblor sandstone has confirmed a new down-dip lighter oil pool in the field area. Based on the well results we are increasingly confident in the applicability of steam enhanced production and reserve growth and are actively investigating the potential for primary production in conjunction with the steam flood."

Tags: Solimar Energy Limited