Solimar Energy provides the following update for the Company's 100% owned Kreyenhagen shale oil project in the San Joaquin Basin, California. The Kreyenhagen shale is a world class oil source rock that has been typed to approximately 3 bboe oil and gas from the surrounding fields, notably Kettleman North and Middle Dome and Coalinga. Solimar holds 9,146 net acres within this prospective unconventional shale fairway that has recently attracted significant attention from major international oil companies on offsetting acreage in the San Joaquin Basin. The naturally fractured Kreyenhagen shale has historically produced from work overs of vertical wells at both Kettleman North and Middle Dome fields.

Will Satterfield, CEO of Solimar, commented, "We are very pleased that following Zodiac's initial foray last year into the Kreyenhagen shale oil play which provided proof of concept, major companies are now entering the play. We anticipate that with further drilling activity and learnings over the course of 2013 in the Kreyenhagen shale, the commerciality of the large oil play will significantly improve."

Tags: Solimar Energy Limited