California: Solimar to spud at Kreyenhagen, gives up Paloma

Solimar Energy Ltd., Melbourne, said it will shortly spud K 8-33, second well of the Phase I work program at its Kreyenhagen heavy oil project in California’s northern San Joaquin basin.

Key Energy Services LLC is moving a rig onto the southeast part of the discovered resource area and will drill directionally at as much as a 48° angle. Goal is to convert additional resources from the prospective to the discovered category.

K 2-33, the first Phase I well, went to 1,472 ft measured depth in mid-July and was logged and cased. Deviated at as much as a 48° inclination, it encountered 600 ft MD gross interval of Temblor sandstone.

K 2-33 and K 8-33 will be completed and production tested using a completion rig starting in mid-October to obtain reservoir fluid samples and evaluate the production performance of deviated wells on primary production. The company anticipates including the K 2-33 well in the upcoming Phase II steam pilot test currently scheduled for early 2014.

Meanwhile, Solimar has relinquished its remaining interests in the Western leases at Paloma and therefore has no further involvement in that project.

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