Costayaco-2 Drilling Commencement - Operational Update - Putumayo Basin - Colombia



    CALGARY, and LONDON, Dec. 11 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL) is pleased to announce that the Costayaco-2 well
located in the Chaza Block, Putumayo Basin, southern Colombia was spudded on
December 6, 2007. Costayaco-2 is the second well in the Costayaco field that
was discovered in the second quarter of 2007. The Costayaco-1 discovery well
tested at a maximum combined rate of 5,906 barrels of oil per day ("bopd")
from four separate formations. Costayaco-2 is 625 metres northeast of
Costayaco-1 and is expected to penetrate the target structure at the same
depth as Costayaco-1. Drilling is anticipated to take 32 days with completion
and testing operations to follow. Costayaco-3, 965 meters west-southwest of
Costayaco-1, will be drilled with the same rig in the first quarter of 2008,
immediately following Costayaco-2. Costayaco-3 is expected to penetrate the
target structure lower than Costayaco-1 and should significantly increase the
Company's understanding of field size.

    Costayaco-1

    Costayaco-1 has been flowing from the Caballos formation at approximately
2,200 bopd (1,000 bopd net of royalty to Solana) with all production trucked
to the nearby Toroyaco facility. Testing of commingled production from two
zones (Caballos and Villeta T) using a jet pump is currently under way.

    Seismic

    The acquisition of 70 square kilometres of new 3-D seismic data over the
Costayaco field and 25 line kilometres of new 2-D data over Chaza block
exploration leads was completed in early December and the data is currently
being processed. The interpretation results from this data will be used for
planning future Costayaco wells and developing exploration plays respectively.
Additionally, the Costayaco-2 and Costayaco-3 results, in combination with the
new 3-D seismic data, will greatly enhance our understanding of field size and
allow us to plan field development, including additional drilling, facilities
and pipelines.

    Infrastructure

    A crude oil truck unloading facility at Uchupayaco, and the tie in of
this facility into the existing 8 inch line that runs to the Santana Station
has been completed. Costayaco production is now being trucked to this
facility, but will ultimately flow in a 10 kilometre 8 inch pipeline from the
Costayaco-1 location to Uchupayaco and into the existing pipeline system. This
line is currently in the planning stages and is scheduled to be operational by
June 2008.
    Solana holds a 50% working interest in the Chaza Block with Gran Tierra
Energy Inc., the operator, holding the other 50% interest. The Chaza block is
subject to a fiscally attractive Agencia Nacional de Hidrocarburos contract
with no additional state participation.
    Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum
Geologist, is the qualified person who has reviewed the technical information
contained in this news release.

    Forward Looking Statements

    Certain information regarding the Company, including management's
assessment of future plans and operations, may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with oil and gas exploration, production, marketing and
transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, mechanical problems, equipment
limitations, environmental risks, competition from other producers and ability
to access sufficient capital from internal and external sources; as a
consequence, actual results may differ materially from those anticipated.

    Solana Resources Limited

    Solana (www.solanaresources.com) is an international resource company
engaged in the acquisition, exploration, development and production of oil and
natural gas. The Company's properties are located in Colombia, South America
and are held through its wholly owned subsidiary, Solana Petroleum Exploration
(Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.

    NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
    RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
    ADEQUACY OR ACCURACY OF THIS RELEASE





For further information:

For further information: Enquiries: Solana Resources Limited, Scott
Price, jsp@solanaresources.com, (403) 770-1822; Ricardo Montes,
rmontes@solanacolombia.com, (403) 668-6604; Nabarro Wells & Co. Limited
(Nominated Adviser), Robert Lo, RobertLo@nabarro-wells.co.uk, +44 20 7710
7400; Marc Cramsie, MarcCramsie@nabarro-wells.co.uk, +44 20 7710 7400;
Tristone Capital Limited (UK Broker), Nick Morgan,
nmorgan@tristonecapital.com, +44 207 355 5800; Pelham Public Relations,
Charles Vivian, charles.vivian@pelhampr.com, +44 207 743 6672; Philip Dennis,
philip.dennis@pelhampr.com, +44 207 743 6363

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SOLANA RESOURCES LIMITED

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