Solana Resources Limited ("Solana" or the "Company") - Operational Update



    CALGARY and LONDON, March 24 /CNW/ - Solana Resources Limited (TSX-V:
SOR; AIM: SORL) is pleased to announce commencement of testing operations on
Costayaco-3 and drilling operations on Costayaco-4 in the Chaza Block,
Putumayo Basin, Southern Colombia. Infrastructure expansions to handle
Putumayo production continue in parallel. Solana also notes the recommencement
of testing operations at Tres Curvas in the Catguas Block, Catatumbo Basin,
and the commencement of drilling operations on Palmitas-2 in the Guachiria Sur
Block, Llanos Basin.

    Costayaco-3, Chaza Block

    Testing operations on Costayaco-3, the third well drilled in the
Costayaco light oil field that was discovered in the second quarter of 2007,
commenced March 19, 2008. The well is located 950 metres west and down dip of
the Costayaco-1 discovery well. Drilling commenced January 25, 2008, and
reached a total depth of 8,620 feet on February 20, 2008. Costayaco-3
encountered the same reservoir sequences with similar good oil and gas shows
as the other Costayaco wells. Initial log interpretations indicate hydrocarbon
pay across the Rumiyaco Kg Formation, the Villeta U Sand Formation, the
Villeta T Sand Formation and the Caballos Formation. Log quality precludes the
ability to conclusively identify oil water contacts. Drill stem testing will
be required to ascertain the nature of the fluid content.
    Testing operations are expected to take one month. Similar to
Costayaco-2, which tested at a combined maximum flow rate in excess of 6,600
barrels of oil per day (BOPD), only the primary Villeta T and Caballos
formations will be tested.
    Solana holds a non-operated 50% working interest in the Chaza block that
is held under a fiscally attractive Agencia Nacional de Hydrocarburos
contract. Gran Tierra Energy holds the other 50% working interest.

    Costayaco-4, Chaza Block

    Drilling operations commenced at Costayaco-4 on March 16, 2008, and are
expected to take approximately six weeks. This deviated well is being drilled
from the Costayaco-2 surface location targeting a down hole location some
540 meters to the north. Cores are planned to be taken across the main
reservoirs.
    Wells Costayaco-5 through -7 are budgeted for the remainder of 2008.

    Costayaco-2, Chaza Block

    A long term test is planned for Costayaco-2 in the next four months. Both
the Caballos and Villeta T reservoirs will be tested. Production rates are
expected to vary from 1,800 BOPD to 3,500 BOPD. A six inch production flow
line from Costayaco-2 to the Costayaco-1 truck loading facility has been
completed and is expected to be operational by the end of March 2008.

    Costayaco-1, Chaza Block

    The Costayaco-1 discovery well is continuing to produce approximately
3,500 BOPD (gross) from the Caballos and Villeta T reservoirs. Crude from
Costayaco-1 and Costayaco-2 will continue to be trucked to the Uchupayaco
battery and into the existing pipeline infrastructure. An eight inch,
10 kilometre pipeline, tying Costayaco-1 into Uchupayaco, is expected to be
completed in June 2008, and will replace the current trucking operations. To
date, line-pipe has been delivered to the field and environmental permits have
been approved.

    Putumayo Infrastructure

    Work is underway to reduce existing infrastructure production constraints
beyond Uchupayaco. It is currently anticipated that 6,000 - 9,000 BOPD gross
could be accommodated during the second half of 2008. A second stage of
infrastructure expansion, to accommodate the anticipated increase in
production from the continuing Costayaco drilling program, is currently being
evaluated.

    Juanambu, Guayuyaco Block

    The Juanambu light oil field, discovered in the first quarter of 2007,
has been tied into existing infrastructure. A six kilometre flow line was
completed on February 29, 2008, and replaces trucking operations.
Approximately 1,300 to 1,500 BOPD (gross) is now being transported through the
flow line. The Juanambu oil field is in the Guayuyaco Block, Putumayo Basin,
where Solana holds a non-operated 35% working interest, Gran Tierra Energy
holds a 35% working interest and Ecopetrol S.A. holds a 30% working interest.

    Palmitas-2, Guachiria Sur Block

    Drilling operations commenced at Palmitas-2 on March 21, 2008, and are
expected to take approximately three weeks. This well is testing a structural
closure defined by 2D seismic data. Targeted formations are the Carbonera C5
and C7 and total depth is forecasted to be 6,900 feet. The Palmitas-2 well is
in the Guachiria Sur Block, Llanos Basin, where Solana holds an operated 100%
working interest. Lewis Energy Colombia holds a 30% beneficial interest in
this block.

    Tres Curvas-1, Catguas Block

    Testing operations recommenced at Tres Curvas-1 on March 18, 2008,
following the introduction of a revised security protocol instituted in
cooperation with the Government of Colombia. Operations had been temporarily
suspended due to an increase in security issues. Tres Curvas-1 is located in
the highly prospective Catguas Block, Catatumbo Basin, where Solana holds a
100% operated working interest. Trayectoria Oil and Gas, Sucursal Colombia
holds a 15% beneficial interest in 70% of the block and a 50% beneficial
interest in the remainder.

    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,
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; 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; James MacFarlane, james.macfarlane@pelhampr.com, +44 207 743 6375

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SOLANA RESOURCES LIMITED

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