CALGARY and LONDON, Dec. 3 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) is pleased to announce it has entered into a commercial agreement
to farmout a fifty percent (50%) interest in the Garibay block, located in
Colombia's Llanos basin, to CEPSA Colombia SA ("CEPCOLSA") a wholly owned
subsidiary of Compania Espanola de Petroleos, S.A. ("CEPSA"), the Spanish
based diversified energy company.
Subsequent to this farmout, Solana and CEPCOLSA will each hold a 50%
participating interest in Garibay. The Garibay block is subject to an
Exploration and Production Contract with Agencia Nacional de Hidrocarburos
("ANH"), the Colombian Government agency regulating the petroleum sector. The
farmout to CEPCOLSA requires the previous approval of ANH to be effective.
Under the terms of the agreement CEPCOLSA will be responsible for 100% of
the costs associated with the third phase exploration well which must be
drilled by October 2008. CEPCOLSA, the operator of a neighbouring block, will
also be the operator of Garibay, subject to the approval of ANH. The
exploration well location will benefit from the extensive 3D seismic which
Solana acquired in early 2007.
This farmout furthers Solana's exploration strategy to concentrate on the
five contiguous blocks it operates in the eastern portion of the Llanos basin
(Guachiria, Guachiria Norte, Guachiria Sur, Colona and San Pablo) and the
highly prospective operated Catguas block in the Catatumbo basin.
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.
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.
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,
email@example.com, (403) 770-1822; Ricardo Montes,
firstname.lastname@example.org, (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
(UK Broker): Nick Morgan, email@example.com, +44 207 355 5800;
Pelham Public Relations: Charles Vivian, firstname.lastname@example.org, +44 207
743 6672; Philip Dennis, email@example.com, +44 207 743 6363