CALGARY and LONDON, Sept. 4 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL), is pleased to announce that during a 4.5 hour clean-up period, the
Los Aceites-1 exploration well flowed at an average rate in excess of 5,000
barrels of 40 degrees API oil per day (bopd), gross, from ten feet of
Los Aceites-1 reached a total measured depth of 7,108 feet on August 11,
2008, and a completion and cased hole short test program commenced on August
24, 2008, utilizing the Pioneer Rig 52 drilling rig.
A total of ten feet was perforated, from 6,874 to 6,884 feet, in the
Carbonera C-7 formation. After perforation the well was swabbed and started to
flow naturally. As part of the clean-up flow period, the well flowed at
exceptional rates in excess of 5,000 bopd gross, 2,800 bopd net of royalty to
Solana, with a 5% water cut. This flow rate was restricted by surface facility
constraints. The duration of the test was very brief, only 4.5 hours, and was
truncated due to limited onsite tank storage capacity. In this part of the
Llanos Basin, in Solana's experience, fields are usually characterized by
limited reserves, high initial production rates (in the 500 - 2,000 bopd
range), and quickly increasing water cuts.
The Pioneer Rig 52 was released on August 29, 2008. Solana will install
appropriately sized equipment to undertake the required short test as soon as
the drilling rig has been moved off of the location. This test is anticipated
to start mid September.
As a result of the exceptional initial flow rates encountered at Los
Aceites-1, the Company is revisiting its mapping of the Los Aceites prospect
with a view to establishing potential field limits. Based on the Company's
current understanding, one additional well may be required in this field.
Solana is the operator and holds a 100% working interest in the Guachiria
block with Lewis Energy Colombia holding a 30% beneficial interest in the
block. The Guachiria block is subject to an Ecopetrol S.A. contract, the
Colombian state oil and gas company, and attracts an additional 13% overriding
royalty that is applied after government royalties to Ecopetrol S.A.
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:
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