CALGARY and LONDON, Jan. 15 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL) is pleased to announce that the Costayaco-2 well, a 560 metre step
out to the northeast of the Costayaco-1 discovery well, has been successfully
drilled, logged and cased. The Costayaco field is located in the Chaza Block,
Putumayo Basin, southern Colombia.
Costayaco-2 reached a total measured depth of 8,600 feet on
January 2, 2008, and encountered similar hydrocarbon shows and lithology as
Costayaco-1. Initial log interpretations, combined with the hydrocarbon shows,
indicate reservoir quality sandstones with potential oil pay in the U and T
units of the Villeta formation, and in the Caballos formation.
The Pride-6 service rig is being mobilized to initiate testing of the
hydrocarbon reservoirs encountered during drilling. Testing operations are
expected to begin in mid-January and scheduled to be completed in
The Pride-17 rig used to drill Costayaco-2 was released on
January 8, 2008, and is currently being moved to the Costayaco-3 location.
Costayaco-3 is located approximately 960 meters west southwest of the
Costayaco-1 location. Drilling is expected to commence in late January and be
completed in late February.
Production from Costayaco-1 has increased to approximately 3,500 barrels
of oil per day ("bopd") gross, or 1,610 bopd net of royalty to Solana, as a
result of commingling the Caballos and the Villeta T zones.
Costayaco-1 oil production is currently being trucked to new offloading
facilities at Uchupayaco which is connected to existing pipeline
infrastructure. Any crude oil production from Costayaco-2 will be trucked to
the same facilities. Preparations for the 11 kilometre pipeline from the
Costayaco field to Uchupayaco are under way. Upon completion, this pipeline
will replace trucking operations.
The acquisition of the previously announced 70 square kilometres of 3-D
seismic covering the Costayaco oilfield has been completed. This data is
currently being interpreted and will be used to assist with the positioning of
future development wells in the Costayaco field. Acquisition of 41 kilometres
of new 2-D seismic data to define additional exploration potential in the
Chaza Block is continuing.
Solana holds a 50% working interest in the Chaza Block with Gran Tierra
Energy Inc., the operator, holding the other 50% interest. The Chaza block is
subject to a fiscally attractive Agencia Nacional de Hidrocarburos contract
with no additional state participation.
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
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