solimar energy report

The Company announced on 19 January 2010 an addition to its San Joaquin Basin asset portfolio that was
secured using the expert knowledge and networks cultivated by the Company. Solimar Energy would be
operator holding between 50% and 70% interests in over 4,500 prospective acres that contain substantial
light oil resources at target depths between 3,500 feet and 11,000 feet.
Consideration for the leases were initial payments of less than US$150,000 and the assumption of royalty
obligations. The company would also carry one of the other partners (Quest Petroleum) (ASX Code: QPN)
through administrative costs including lease rentals and various technical studies leading up to but not
including the drilling phase in the two leases areas.
The company plans to drill a well by calendar mid year 2010 after selecting a test well site on the most
advanced project at Guijarral Hills and most likely introducing a farmin partner(s) to part fund the well on a
promoted basis. The Guijarral Hills field has historically produced over 50 million barrels of light oil with gas
from four main oil reservoirs with many wells producing at initial rates of over 500 bopd. Over 35 million
barrels of oil in place (OIP) is estimated remaining within the Guijarral Hills acreage controlled by the
Company. Reservoir studies are being undertaken to select drillsites that have the best chance of enhancing
oil recovery at commercial flow rates