Solimar Provides Paloma-3 Results, Prepares to Test Fruitvale Formation

Solimar Energy Ltd. (ASX:SGY,TSXV:SXS) provided an update on production testing at its Paloma project, commenting that shallow-gas-sand testing in Paloma-3 showed a maximum unassisted flow of 2.2 million cubic feet of gas per day. Two more shallow gas sands in the well still need to be tested.

As quoted in the market news:

The joint venture operated by Neon Energy expects to commercialise the gas in the well on the back of a greater Paloma development, and has signed a Gas Sales Agreement with a local purchaser.

Preparations are now being made to test the primary objectives of the Paloma Deep-2 well, the Fruitvale Formation and the Lower Stevens B sandstone. Testing of these zones in Paloma Deep-1 achieved a maximum unassisted flow rate of 226 barrels per day of oil/condensate and 1.9 MMcf of gas per day.

Click here to read the full Solimar Energy Ltd. (ASX:SGY,TSXV:SXS) press release.