CALGARY, Sept. 26 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) is pleased to announce that its average production (net after
royalties) since September 10, 2007, has increased almost three fold from
January this year to approximately 1,450 barrels of oil equivalent per day.
This total comprises approximately 1,290 barrels of oil per day (bopd) and
955 thousand cubic feet of gas per day.
This increase is reflective of new production from the Juanambu and
Costayaco oilfields discovered in the first half of 2007. Staged field
development programs on both fields have been initiated which should allow for
continued production growth through 2008.
Located on the Chaza Block, Putumayo Basin, first development stage
trucking of Costayaco-1 production to existing facilities has been
implemented. Costayaco-1 has been averaging approximately 1,750 bopd gross
since September 10 (805 bopd net of royalties to Solana) on natural flow from
selected zones. Costayaco-1's production rate is currently limited by trucking
The first development stage also includes drilling two development wells
commencing late in the fourth quarter of 2007 and continuing into 2008. To
assist with future development drilling location selection, a 70 square
kilometre 3-D seismic program, covering the entire field, has also been
initiated and will be completed by the end of the fourth quarter of 2007.
Additionally, a ten kilometre eight inch pipeline, tying into existing
infrastructure, is being designed to replace trucking operations. This
pipeline will have sufficient capacity to handle estimated full field
development volumes, although initial throughput will be limited to existing
infrastructure capacity which is estimated at 5,000 to 6,000 bopd. This line
is anticipated to be operational in the second quarter of 2008. A second stage
of development drilling and infrastructure construction will be contingent on
the results of these initial wells.
A staged development program is also being implemented at Juanambu in the
Guayuyaco Block which is directly east of the Chaza Block in the Putumayo
Basin. Production testing has been completed and the application process for
commerciality is continuing. A six kilometre six inch flowline tying
Juanambu-1 into existing infrastructure is being designed and should be
operational by late fourth quarter 2007. A second stage of development
drilling and infrastructure construction is being evaluated for 2008.
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: Scott Price,
firstname.lastname@example.org, (403) 770-1822; Ricardo Montes,
email@example.com, (403) 668-6604; Nabarro Wells & Co. Limited
(Nominated Adviser): John Wilkes, firstname.lastname@example.org, +44 20 7710
7400; Tristone Capital Limited (UK Broker): Nick Morgan,
email@example.com, +44 207 399 2486; Pelham Public Relations,
Charles Vivian, firstname.lastname@example.org, +44 207 743 6672; Philip Dennis,
email@example.com, +44 207 743 6363