Solimar Energy Limited
TSX VENTURE : SXS
ASX : SGY

Solimar Energy Limited

June 21, 2012 07:30 ET

Solimar Energy Limited: Paloma Project Update

MELBOURNE, AUSTRALIA--(Marketwire - June 21, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Solimar Energy Limited (TSX VENTURE:SXS)(ASX:SGY) provides the following update on activities at its Paloma project in the San Joaquin Basin, California.

Interested readers are also directed to the more detailed announcement today by project operator Neon Energy Limited (ASX:NEN) quoting management estimates of Contingent Resources that can be found on the home page of their website: www.neonenergy.com under "Latest News".

Solimar is participating in three concurrent activities at Paloma where it holds interests ranging from 15% to 25% in 2,847 gross acres.

These activities include:

  • The ongoing production testing of the Antelope Shale unconventional reservoir in the Paloma Deep-1 discovery well.
  • The drilling of the follow up appraisal well Paloma Deep-2 which is drilling ahead at approximately 11,600 feet towards a proposed total depth of 13,300 feet. The well is expected to be completed for testing within 3-4 weeks time; and
  • The shallow (Total Depth 6,000 feet) Paloma-3 well which has been cased and is preparing to production test two potential hydrocarbon pay zones with results expected within the next 2 weeks.

Based on revised ownership arrangements announced on 29 May, 2012 Solimar has joint venture credit providing funding for its participation in the Paloma Deep-2 and Paloma-3.

In addition to the activity being carried out by the Solimar / Neon joint venture, oil major Occidental Petroleum holds most of the surrounding acreage and has permitted up to 8 new well locations located along the borders of the Paloma project.

Sincerely

John Begg, Chief Executive Officer

Solimar Energy Limited

This press release contains certain forward-looking statements within the meaning of applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur, including without limitation statements relating to intended testing, work programs, financing and associated timelines. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. Solimar Energy Limited cannot assure that actual results will be consistent with these forward-looking statements. They are made as of the date hereof and are subject to change and Solimar Energy Limited assumes no obligation to revise or update them to reflect new circumstances, except as required by law. Prospective investors should not place undue reliance on forward-looking statements. These factors include the inherent risks involved in the exploration for and development of crude oil and natural gas properties, the uncertainties involved in interpreting drilling results and other geological and geophysical data, fluctuating energy prices, the possibility of cost overruns or unanticipated costs or delays and other uncertainties associated with the oil and gas industry. There is no assurance that the Offering will be completed.

ABN 42 112 256 649

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Solimar Energy Limited
    Registered Office: 566 Elizabeth Street,
    Melbourne, Victoria 3000
    +61 3 9347 2409
    +61 3 9349 1186 (FAX)
    www.solimarenergy.com.au