Solimar to Open 1st Zone in Guijarral Hills Flow Test Prog.

- Solimar to Open 1st Zone in Guijarral Hills Flow Test Prog.

Friday, May 27, 2011
Solimar Energy Ltd.

Solimar announced that flow testing operations using the Orchard Petroleum Rig #2 will commence in the next 24 hours when the deepest zone selected for testing will be perforated and opened for flow into the well bore.

Perforations will be made between 10,370 feet and 10,380 feet within the Lower Gatchell Sandstone and then flow tested to determine whether commercial production is feasible.

The perforations are being restricted to a preferred 10 foot interval although additional potential hydrocarbon pay may be present in the Lower Gatchell Sandstone based on the wireline log data. Initial results from the Gatchell test may be reportable by late next week.
Background to Testing Program

The program will test selected intervals within the following 3 formations:

Formation	Perforation Interval (feet)
Leda Sandstone	8,533-8,540
Lower Avenal Sandstone	9,962-9,982
Lower Gatchell Sandstone	10,370-10,380

The three intervals to be tested have all been productive in the adjacent Guijarral Hills oil and gas field. Each of the zones were characterized by increased shows of hydrocarbons recorded while drilling and anomalies on wireline logs. Petrophysical analysis indicates hydrocarbon pay is present however the flow testing program is necessary to determine whether the hydrocarbon saturations and reservoir quality will support commercial rates of flow.

A total potential net pay estimate of over 135 feet in six separate zones was previously announced for the well. The zones that have been selected for testing are those deemed most likely to provide a definitive series of tests. If successful then the likelihood will be increased that other zones identified with potential pay can also be successfully tested.

Testing of each reservoir will involve perforation of the designated intervals followed by periods of flow and shut in to measure flow rates, pressure response and evaluate fluid properties. The sequence will involve testing of the deepest interval (Lower Gatchell) first and then working up the well as necessary to the shallower intervals.

The testing program cost for the three intervals has been budgeted at approximately US $530,000 although final costs will depend on results and whether these necessitate further procedures such as fracc stimulation.

ASX listed partners in the Guijarral Hills project, at post drill equities will be:

• Solimar Energy LLC (Operator) 35%
• Neon Energy Limited (ASX: NEN) 15%

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Solimar to Commence Flow Testing Prog. at Guijarral Hills

- Solimar to Commence Flow Testing Prog. at Guijarral Hills

Thursday, May 19, 2011
Blast Energy Services Inc.

Blast announced that a completion rig has moved on location to commence the flow testing program on the Solimar Energy 76-33 well in the Guijarral Hills Field Area located in Fresno County, California. Under the completion plan, Solimar Energy, the operator of the well, plans to perforate and flow test up to three zones within the Gatchell, Avenal and Leda intervals. A total of potential net pay of over 135 feet in six separate intervals was previously reported for the well. The three intervals that have been selected for testing are those deemed most likely to potentially produce commercial quantities of oil.

"We acquired our interest in the Guijarral Hills Project with a target of achieving five million barrels of recoverable light oil resources. We are encouraged by the shows encountered in this first well and are looking forward to the results of this testing program," stated Michael Peterson, acting President and Chief Executive Officer of Blast.

The testing program will involve perforating the selected interval followed by periods when the well will be flowing or shut-in to measure the pressure response and to evaluate fluid properties. The test sequence will involve testing the deepest interval, the Lower Gatchell, first and then working up the well, as necessary, to the shallower Avenal and Leda objectives.

The three intervals selected to be tested have all been productive in the adjacent Guijarral Hills field. Each zone had increased shows of hydrocarbons while drilling and were indicated on wireline logs. While such petro-physical analysis indicates that hydrocarbon pay is present, the flow testing program is necessary to determine whether the reservoir quality will meet commercial production rates.

The testing program for the three intervals is expected to have a gross cost of approximately $530,000, although the total cost will depend on the results and whether any of the intervals require additional procedures, such as fracture stimulation. While Blast has paid two-thirds of the cost to date, Blast is now heads up on this project and will be responsible for 50% of the costs going forward.

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