CALGARY and LONDON, June 19 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) announces that the Palmitas-2 well, testing a structure identified
on 2-D seismic and located on the Guachiria Sur block in the Llanos Basin,
Colombia, will be suspended for further evaluation.
Palmitas-2 reached a total depth of 6,905 feet on March 28, 2008, and
following logging, sidewall coring and MDT tests was cased. While initial log
interpretations and MDT tests indicated potential oil pay in the Carbonera C-7
Formation, subsequent extensive cased hole testing with a jet pump failed to
yield commercial oil rates. The very low salinity of the produced water in
this area of the Llanos basin makes log interpretation difficult. Further
evaluation of the well is dependent on mobilizing specialized production
logging tools, which are currently not available in Colombia.
Solana remains committed to its Llanos exploration program and plans to
spud the Los Aceites-1 well around the middle of July, which is an addition to
the Company's 2008 Llanos program. The Los Aceites-1 well will be located
3.3 km south-southwest of, and on trend with, Solana's recent Primavera-1
discovery on the Guachiria block. Available 3-D seismic indicates that the Los
Aceites structure is expected to be 70 feet higher than Primavera.
Although exploration activity is normally confined to the January through
March dry season in this area of the Llanos basin, Solana, as a test, is
currently completing construction of a 3.8 km road and the Los Aceites-1 well
location. Based on this exercise, the Company will be able to determine the
economic viability of wet season exploration.
Solana is the operator and holds a 100% working interest in the Guachiria
and Guachiria Sur blocks. Lewis Energy Colombia holds a 30% beneficial
interest in both blocks. The blocks are subject to fiscally attractive Agencia
Nacional de Hidrocarburos contracts. The Guachiria block also attracts an
additional 13% overriding royalty, applied after government royalties, to
Ecopetrol, the State oil and gas company.
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 Limited: Scott
Price, firstname.lastname@example.org, (403) 770-1822; Ricardo Montes,
email@example.com, (403) 770-1822; Nabarro Wells & Co. Limited
(Nominated Adviser): Robert Lo, RobertLo@nabarro-wells.co.uk, Marc Cramsie,
MarcCramsie@nabarro-wells.co.uk, +44 20 7634 4705; Tristone Capital Limited
(UK Broker): Nick Morgan, firstname.lastname@example.org, +44 207 355 5800;
Pelham Public Relations: Philip Dennis, email@example.com, +44 207
743 6363; James MacFarlane, firstname.lastname@example.org, +44 207 743 6375