The Aquaduct Fan Prospect (10% interest), San Joaquin Basin, California

The Aquaduct Fan Prospect is in acreage near the potential oil discovery at North Yowlumne. The North Yowlumne 1-26 well targeted a postulated sea floor fan deposit at the foot of the Upper Miocene Stevens channel sand which is prolifically productive in the immediately adjacent Yowlumne oil field to the south. The North Yowlumne 1-26 well discovered oil in traps with a strong stratigraphic element of closure.

The well discovered 32° API oil with minor associated gas from the lower two zones (Zone 1, 12,680 feet to 13,020 feet and Zone 2, 12,700 feet to 12,840 feet). The well also discovered 36° API oil with minor associated gas has been tested from Zone 3 between 12,490 feet and 12,690 feet which was the main reservoir originally targeted by the well. A second drilling location has been planned for the North Yowlumne 2-26 well.

The potential in this unexplored area of Acquaduct Fan is substantial with an estimated recoverable resource potential of 200 million barrels of oil. Solimar Energy is aiming to drill a well at Acquaduct Fan in 2008. The outcome of near term drilling activities in the area near Acquaduct will impact any future drilling at this project.