Buena Vista Valley Prospects

Approximately 26,000 Acres : SAE 25% - 100%
(Mostly Operated)

Salinas has been successful in securing a large acreage position in the ‘Buena Vista Valley’ area flanking in particular the giant Buena Vista oil and gas field (660million barrel oil and 1.2 trillion cubic feet gas) and the 113 million barrel Yowlumne oil field. The largest field in the Basin the 3.5 billion barrel Midway Sunset oil field is located immediately west and south west of the lease areas.

Altogether the Company has secured approximately 26,000 acres within a very oil prone area. The Company has 100% interests in most of the leases with the exception of the South Buena Vista Area of Mutual Interest (“AMI”) where it is participating in the ongoing testing program for the North Yowlumne ST-1 well. Salinas is earning a 25% interest in the AMI area which covers approximately 8,000 acres.

There are a range of trap types evident in the leases including large, mostly stratigraphic traps (the North Yowlumne ST-1 oil discovery well is testing such a trap), anticlinal traps and fault bound structures. In almost all cases the targets are Miocene Age, deep water sandstones, that are productive in nearby fields. Target depths range from 7000 feet to over 13,000 feet.

Salinas has compiled a large well and seismic data base over the leases, including a number of 3D seismic surveys, which have been evaluated to rank in order of merit the leads and prospects in the acreage.

The Buena Vista Valley area leases include:

The South Buena Vista Prospect area, Salinas 25%. The Company also has the right to operate at the development/production phase some of the leases within the AMI including the lease containing the non commercial North Yowlumne ST-1 oil discovery. More information about this lease is provided in a following section.

Taft area leases. Salinas 100% and operator. Located to the west of the South Buena Vista AMI. Documentation is still being processed over some of these leases.

B&N area leases. Salinas is 100% operator except in areas overlapping the AMI where Salinas will have 25%. Located generally north and north east of the South Buena Vista AMI.