(MENAFN- ProactiveInvestors - Australia) Solimar Energy (ASX: SGY) has made its first shipment of oil from its 100% owned Kreyenhagen shallow oil field redevelopment project in the San Joaquin Basin, California.
This follows the company starting long term primary production at the field on the back of a 3,101% increase in Contingent Recoverable Resource and confirmation of a lighter oil pool.
Solimar is also investigating the potential for multiple additional locations for the lighter oil pool along strike and increasing production by carrying out small fracture stimulations as well as higher flow rate deviated or horizontal wells.
It is also planning to start production testing of the primary Temblor oil reservoir in a third well, which is currently suspended awaiting re-entry.
Planning also continues for the start of the cyclic steam pilot in the second quarter of 2013.
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