East San Ardo (ESA)

Approximately 337 acres and SAE 100% (Operator)

ESA is located on the north eastern flank of the giant producing San Ardo oil field from which almost 500 million barrels of heavy oil have been produced.  The San Ardo field is operated by Chevron and AERA (a joint venture between EXXON-MOBIL and Shell) and the ESA lease is north and adjacent to the area from which AERA are currently producing from the field.

The ESA lease covers 337 acres and the mapped, eastern most portion of the San Ardo field.  The Barkley Pool further to the east is also a part of the giant oil field and has produced over 1.0 million barrels of oil.

There are no wells in the lease or within two miles to the north of the lease.

Based on well data alone, previous interpretations have this lease as a structural low just outside the extent of the San Ardo field.  Salinas Energy have recently acquired a 2D seismic line through this lease which highlights that at the reservoir level the section rises upward (not downward) indicating that the San Ardo field may extend over much of the 337 acre lease held by the Company.

Salinas estimates that this lease has the potential to hold up to 8.6 million barrels of oil in place.

Permits have been received from the authorities to drill a test well in 2009.