South Buena Vista AMI (North Yowlumne)

Approximately 8,000 Acres : SAE 25%

Salinas earned its 25% interest in this 8,000 plus acre area by paying a promoted share of costs of the North Yowlumne-1 well drilled and tested during 2006.

North Yowlumne-1 tested oil of 32º - 36º API from the primary target but was not able to be completed as a commercial producer.

Salinas has since remapped the prospect using 3D seismic calibrated by the well results.  This mapping shows the well was located on a the edge of a thick, discrete deepwater sandstone deposit which potentially sets up a large stratigraphic trap.  Salinas’ interpretation suggests that thicker and better developed reservoir is present in the core of this sand body.

A second well drilled in 2007 also found light oil but did not prove a better reservoir.  The Company is reviewing its geological model before determining whether further investment in the project is warranted.