MELBOURNE, AUSTRALIA--(Marketwire - Feb. 5, 2013) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Solimar Energy (TSX VENTURE:SXS)(ASX:SGY) ("The Company" or "Solimar") is pleased to provide the following update for the Company's 50% owned Maricopa producing project in the San Joaquin Basin, California.
The Company has formally closed on the sale of the 120 acre Maricopa property to an undisclosed private buyer for a total purchase price of USD $1,250,000. Solimar's 50% WI proceeds are USD $625,000. Solimar is operator of the property with Challenger Energy LLC holding the remaining 50% WI. Effective date for the transaction is January 31, 2013.
The sale of the non-core property fulfills one of the Company's stated goals of freeing up additional capital for key projects, particularly the multi-target Kreyenhagen project where the Company is conducting long term production testing from the shallow Temblor sandstone heavy oil reservoir. The Company anticipates further testing at the Kreyenhagen Field in the Temblor oil zone in Q1 2013, leading to initiation of a cyclic steam pilot.
The Company is also in discussion with potential joint venture partners in regard to the Kreyenhagen Temblor heavy oil development as well as the expanding Kreyenhagen shale oil play in the Company's approximate 13,000 net acres Kreyenhagen acreage holdings.
Will Satterfield, CEO of Solimar, commented "The closing of the non-core Maricopa property at a time of high crude prices allows us to further concentrate our operational and financial resources on the Company's Kreyenhagen Project which contains large upside, multi-zone development and exploration targets."
Reader Advisory: Potential resource estimates and forward-looking statements
This news release contains forward-looking information relating to adding to reserves and resource estimates, 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.
Forward-looking information is based on certain factors and assumptions regarding, among other things, the impact of increasing competition; the timely receipt of any required regulatory approvals; the ability of the Company to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manner; the ability of the Company to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development of exploration; the timing and costs of pipeline, storage and facility construction and expansion and the ability of the Company to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which the Company operates; and the ability of the Company to successfully market its oil and natural gas products, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking-information is subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what is currently expected. These factors include risks associated with instability of the economic environments in which the Company operates or owns interests, oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays, including risks relating to the acquisition of necessary licenses and permits, environmental risks and insurance risks.
The estimates of resources in this news release constitute forward-looking information which is subject to certain risks and uncertainties, including those associated with the drilling and completion of future wells, limited available geological data and uncertainties regarding the actual production characteristics of, and recovery efficiencies associated with, the reservoirs, all of which are being assumed. As estimates, there is no guarantee that the estimated reserves or resources will be recovered or produced. Actual reserves and resources may be greater than or less than the estimates provided in this presentation.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law.
ABN 42 112 256 649
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