CALGARY, and LONDON, UK, Feb. 25 /CNW/ - (TSX-V: SOR; AIM: SORL) is
pleased to announce the Costayaco-2 step out exploration well has been
successfully tested at a combined maximum flow rate in excess of 6,600 barrels
of oil per day (BOPD) from 119 feet of perforations.
Solana holds a 50% working interest in the Costayaco Field that was
discovered in 2007 and which is located in the Chaza Block, Putumayo Basin,
Colombia. Gran Tierra Energy Inc., the operator, holding the remaining 50%
The Costayaco-2 well is being completed for production. Produced oil is
currently planned to be transported through a planned six inch flow line to
the Costayaco-1 truck loading facility. At this point it will be mixed with
crude oil from Costayaco-1 and trucked to Uchupayaco where it will enter the
existing pipeline network. The Costayaco-1 discovery well is continuing to
produce approximately 3,500 BOPD (gross) from the Caballos and Villeta T
reservoirs. Costayaco production is currently limited by trucking capability
and in the near future it will be constrained by existing infrastructure
limitations. The joint venture is investigating ways to remove these
Costayaco-2 Testing Program
Costayaco-2 reached a total measured depth of 8,600 feet on January 2,
2008. A two formation, five zone cased hole drill stem test (DST) program,
designed to evaluate only the primary reservoirs in the field, commenced on
February 2, 2008.
Five DST's were completed over the Lower, Middle and Upper Caballos
Formation, and in the Villeta T Formation. The Villeta U Formation and the
Rumiyaco Kg Formation, which indicated pay zones from log interpretation and
which were successfully tested in the Costayaco-1 discovery well, were not
tested to avoid additional formation damage and to preserve reservoir
integrity. These zones are expected to be completed later in the field life
when the primary reservoirs are depleted.
DST-1 (8,494 - 8,498 interval; 4 feet of perforations) tested the Lower
Caballos. No flow was obtained. Additional perforations were added in DST-1A
(8,490 - 8,498 interval; 8 feet of perforations) and a maximum rate of 26 BOPD
with a steadily decreasing water cut was obtained by swabbing. The oil gravity
fluctuated between 25 degrees and 15 degrees API. Due to the short duration of
the test (28 hours in a 48 hour period) a stabilized flow rate was not
achieved. Analysis of the pressure data indicates very high formation damage.
DST-2 (8,330 - 8,342 interval; 12 feet of perforations) tested the Upper
Caballos. Swabbing for a short period of time (20 hours in a 48 hour period)
produced 29 degrees API oil at a maximum rate of 25 BOPD with a decreasing
water cut (8% at the termination of the test).
DST-3 (8,330 - 8474 gross interval; 88 feet of perforations) tested the
Upper and the Middle Caballos combined. Initial swabbing (1.5 hours) was
followed by natural flow at a maximum rate of 2,376 BOPD of 31 degrees API
oil. Only traces of water were noted.
DST-4 (8,200 - 8,236 gross interval; 31 feet of perforations) tested the
Villeta T Formation. Initial swabbing (49 minutes) was followed by natural
flow at a maximum rate of 4,209 BOPD of 30 degrees API oil. Only traces of
water were noted.
Solana is also pleased to announce that drilling operations commenced
February 20, 2008 on the Primavera-1 well located in the Guachiria Block,
Llanos Basin, Colombia. Primavera-1 is planned to take 21 days to drill, with
completion and testing operations to follow. Upon completion of drilling
operations at Primavera-1, the drilling rig is currently planned to move 12 km
to Palmitas-2, located on the Guachiria Sur Block, Llanos Basin, Colombia.
Solana is the operator and holds a 70% working interest in both the
Guachiria and Guachiria Sur Blocks with Lewis Energy Colombia holding the
other 30% interest.
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: Solana Resources Limited, Scott Price,
firstname.lastname@example.org, (403) 770-1822; Ricardo Montes,
email@example.com, (403) 668-6604; Nabarro Wells & Co. Limited
(Nominated Adviser), Robert Lo, RobertLo@nabarro-wells.co.uk; Marc Cramsie,
MarcCramsie@nabarro-wells.co.uk; +44 20 7710 7400; Tristone Capital Limited
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