CALGARY and LONDON, UK, March 12 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL) is pleased to announce that it has successfully
drilled, logged, cased and is preparing to test the Primavera-1 well located
on the Guachiria Block in Colombia's Llanos Basin.
Drilling commenced on Primavera-1 on February 20, 2008 and reached a
total depth of 7,405 feet on March 1, 2008. Initial log interpretations, MDT
tests and sidewall cores indicate potential oil pay in the Carbonera
C-7 Formation, where 40 degrees API oil was encountered, and in the Carbonera
C-5 Formation, where oil shows were observed.
A service rig is being mobilized to test the hydrocarbon reservoirs
encountered. Testing operations are scheduled to begin in mid-April and to be
completed by the end of April.
The Pioneer-52 drilling rig was released on March 8, 2008 and is
currently moving 12 km to Solana's Palmitas-2 location on the Guachiria Sur
Block. Drilling is expected to start at Palmitas-2 in mid-March and be
completed by the end of March.
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.
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
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