Tejon area - Merlot Prospect

Approximately 4,100 Acres: SAE 100% (Operator)

These leases are located on the Tejon platform on the southern margin of the San Joaquin Basin, south east of the South Buena Vista lease area.

Targets are Miocene to Eocone age mostly shelfal sandstones (some being the shallower water equivalents to the deep water origin sands Salinas is pursuing in the Buena Vista Valley area) at depths between 5,000 feet and 13,000 feet.

The leases have mainly been acquired from the Tejon Ranch Company, one of the largest landholding and mineral (petroleum) rights owners in California. The acreage is surrounded by a number of small to large sized oil and gas fields.

The most advanced play is the 23-46 million barrel potential Merlot Prospect. This prospect is a footwall structure (set up by closure in a downthrown setting against a prominent thrust fault) with numerous, stacked sandstone targets. The primary reservoir within the prospect is the Vedder Formation in an updip position from a 1962 well that tested oil (40° API) and gas from that zone.

Salinas is advanced in a farmout of this project to support drilling in 2009 having already secured Statesman Resources and L&M Petroleum as partners.  The Company expects to hold 40% and operatorship of the project and leases with third parties funding the cost of drilling.