CALGARY, AB and LONDON, UK, Nov. 20 /CNW/ - Solana Resources Limited
(TSX-V: SOR; AIM: SORL) is pleased to announce that approval of commerciality
has been received for the Juanambu oil field, located in the Guayuyaco Block
in southern Colombia, and that Juanambu-1, the discovery well, has been placed
on production. Solana is also pleased to announce and that Cocodrilo-1,
located in the Catguas Block, north-eastern Colombia, commenced drilling on
November 16, 2007.
Juanambu-1 is currently producing approximately 1,400 barrels of oil per
day ("bopd"), 450 bopd net of royalty to Solana. This brings Solana's current
total Colombian production, net of royalties, to approximately 1,875 barrels
of oil equivalent per day (90% oil - 10% gas).
The Juanambu oil field was discovered in the first quarter of 2007,
tested in the second quarter of 2007 and an application for commerciality was
submitted to Ecopetrol, the Colombian national oil company, in the third
quarter of 2007.
Under the Association Contract that governs the Guayuyaco Block,
Ecopetrol backs in for a 30% interest in the Juanambu oil field concurrent
with the approval of commerciality for this field. Solana and Gran Tierra
Energy, the operator, each retain a 35% interest in the Juanambu field.
Production, currently being transported by truck to existing
infrastructure, will flow through a five kilometre, six inch flow-line that is
expected to be operational by mid January 2008.
Solana spudded Cocodrilo-1 on November 16, 2007. This well is expected to
take three weeks to drill with testing potentially to follow. Cocodrilo-1 is
targeting the Barco and Catatumbo formations that have been identified on 2D
seismic and are oil bearing in the nearby Tres Curvas-1 new field discovery.
Cocodrilo-1 is the sixth well in Solana's 2007 six well exploration
program, and the second of the two well program Solana is undertaking on the
Catguas Block. To date, Solana has had three successes in this 2007 campaign
including Tres Curvas-1 on the Catguas Block.
Solana is the operator of the Catguas Block with a 100% working interest.
Trayectoria Oil and Gas, Sucursal Colombia holds a 15% beneficial interest in
the portion of the block containing the Cocodrilo-1 well. The Catguas 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.
For further information:
For further information: Solana Resources Limited, Scott Price,
firstname.lastname@example.org, (403) 770-1822; Ricardo Montes,
email@example.com, (403) 668-6604; Nabarro Wells & Co. Limited
(Nominated Adviser), Robert Lo, RobertLo@nabarro-wells.co.uk, +44 20 7710
7400; Marc Cramsie, MarcCramsie@nabarro-wells.co.uk, +44 20 7710 7400;
Tristone Capital Limited (UK Broker), Nick Morgan,
firstname.lastname@example.org, +44 207 355 5800; Pelham Public Relations,
Charles Vivian, email@example.com, +44 207 743 6672; Philip Dennis,
firstname.lastname@example.org, +44 207 743 6363