Solimar Energy Ltd. (ASX:SGY,TSXV:SXS) announced an update on its California-based Kreyenhagen oil project, commenting that facilities for the first stage of production testing are set up at the site.
As quoted in the press release:
- A workover rig and associated production testing facilities are now onsite to commence the first phase production testing of the Temblor Sandstone oil reservoir.
- The Temblor Formation is independently assessed to contain unrisked oil in place of up to 79MMBBLS* of 13 -18 degrees API gravity oil net to the Company’s working interest.
- The current operation will involve re-entering a selection of existing suspended wells to flow test and sample the oil reservoir.
- The initial testing operation will involve a “Cold Flow” or unstimulated, primary testing operation. A second phase of production testing, utilising steam injection will follow this initial phase.
- Solimar already has permits in place and a 20 MMBTU portable steam generator under construction for the steam injection known as a “Huff and Puff” program.
- As part of the initial test phase the underlying Avenal Sandstone reservoir which contains gas and light oil will also be production tested.