Solana Resources Limited - ("Solana" or the "Company") - Exceptional Preliminary Test Results - Costayaco-1 - Putumayo Basin - Colombia



    CALGARY, June 20 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL)
is pleased to announce partial preliminary test results for the Costayaco-1
wildcat exploration well. Costayaco-1 is located in the Chaza Block, Putumayo
Basin, southern Colombia. Solana holds a 50% working interest in the Chaza
Block with Gran Tierra Energy Inc., the operator, holding the other 50%
interest.
    Costayaco-1 reached a total measured depth of 2,612 meters (8,570 feet)
on May 10, 2007. A four formation, six zone cased hole testing program
commenced on June 10, 2007 and as of June 20, 2007, Drill Stem Tests (DST)
have been completed on the first three zones, the lower Caballos, the middle
Caballos and the lower Villeta T. To date the well has tested a combined 635
m(3)/day (3,997 bopd) from 32.6 m (107 ft) of perforations.
    The DST-1 interval, 2.4m (8 ft), testing the lower Caballos, was selected
to test a potential oil water contact. After initial swabbing the well started
to flow naturally, reaching a maximum oil rate of 33 m(3)/day (206 bopd) with
only traces of water. A review of available data indicates no evidence of an
oil water contact.
    DST-2, tested a thick, 29.0 m (95 ft), middle Caballos interval and
included the zone perforated for DST-1. After one swab the well started to
flow naturally, reaching a maximum oil rate of 422 m(3)/day (2,655 bopd) with
only traces of water.
    The DST-3 interval, 3.7 m (12 ft), testing the lower Villeta T, was
selected to test a potential oil water contact. After swabbing, the well
started to flow naturally, reaching a maximum oil rate of 213 m(3)/day (1,342
bopd) with only traces of water. A review of available data indicates no
evidence of an oil water contact. Detailed test results of the three DST's, in
both metric and English units, are contained in the tables below.

    
    -------------------------------------------------------------------------
    Test Number               DST - 1           DST - 2            DST-3
    -------------------------------------------------------------------------
    Formation             Lower Caballos    Middle Caballos   Lower Villeta T
    -------------------------------------------------------------------------
    Gross Interval (m)     2,577 - 2,582     2,532 - 2,582     2,506 - 2,510
    -------------------------------------------------------------------------
    Perforated Interval (m)    2.4               29.0               3.7
    -------------------------------------------------------------------------
    Flow Type                 Natural          Natural            Natural
    -------------------------------------------------------------------------
    Maximum Oil Flow
     Rate (m(3)/d)              33                422               213
    -------------------------------------------------------------------------
    Final BS&W (%)               0                 0                 0
    -------------------------------------------------------------------------
    Total Flow Time (hrs)      10.5               32                13
    -------------------------------------------------------------------------
    Total Oil Produced
     (m(3))                     12                286               91
    -------------------------------------------------------------------------
    Oil Density (kg/m(3))      876                871               876
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Test Number              DST - 1            DST - 2            DST-3
    -------------------------------------------------------------------------
    Formation             Lower Caballos    Middle Caballos   Lower Villeta T
    -------------------------------------------------------------------------
    Gross Interval (ft)    8,456 - 8,471     8,308 - 8,471     8,222 - 8,234
    -------------------------------------------------------------------------
    Perforated Interval (ft)     8                95                12
    -------------------------------------------------------------------------
    Flow Type                 Natural          Natural            Natural
    -------------------------------------------------------------------------
    Maximum Oil Flow
     Rate (bopd)               206              2,655              1,342
    -------------------------------------------------------------------------
    Final BS&W (%)               0                 0                 0
    -------------------------------------------------------------------------
    Total Flow Time (hrs)      10.5               32                13
    -------------------------------------------------------------------------
    Total Oil Produced
     (bbls)                     76              1,796               572
    -------------------------------------------------------------------------
    Oil Quality (API)           30                31                30
    -------------------------------------------------------------------------
    

    Testing will continue with DST-4 in the overlying main Villeta T interval
and then two additional DST's in the Villeta U and the Rumiyaco KG sands.
Initial log interpretations, combined with hydrocarbon shows encountered
during drilling, indicate reservoir quality sandstones with potential oil pay
in these zones. Additionally, these zones are productive in the nearby Santana
Block, as well as in the recently tested Solana/Gran Tierra Juanambu-1 well
located on the adjacent Guayuyaco block.
    The Pride-17 drilling rig, used to drill Costayaco-1, is expected to be
available for additional drilling as of October of this year. To optimize
drilling locations, a near term seismic infill program over the Costayaco
structure is being considered.
    Costayaco-1 is proximal to infrastructure allowing for early monetization
of commercial production. The Chaza block is subject to a fiscally attractive
Agencia Nacional de Hidrocarburos royalty/tax contract with no additional
state participation.
    Costayaco-1 is the Company's second Putumayo Basin new field discovery in
the last three months. The Juanambu-1 discovery was announced March 19, 2007,
and commercial production will commence as soon as regulatory approval is
obtained.
    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, Scott Price,
jsp@solanaresources.com, (403) 770-1822; Ricardo Montes,
rmontes@solanacolombia.com, (403) 668-6604; Nabarro Wells & Co. Limited,
(Nominated Adviser), John Wilkes, solana@nabarro-wells.co.uk, +44 20 7710
7400; Tristone Capital Limited, (UK Broker), Nick Morgan,
nmorgan@tristonecapital.com, +44 207 399 2486; 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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