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Solana Resources Limited - Colombian Operations Update - Guariquies 1 Well
Solana Resources Limited - Colombian Operations Update - Guariquies 1 Well.
About this update from Kutcho Copper Corp
[{"type":"text","content":"\n\n\n\n\nCALGARY, March 2 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM:\nSORL), the Colombia focused independent oil and gas exploration and production\ncompany, today announces the successful completion of the drilling of the\nGuariquies 1 well, in the Middle Magdalena Basin in Colombia. Solana operates\nin Colombia through Solana Petroleum Exploration Colombia Limited, Solana's\nwholly owned subsidiary.\n\nKey Points\n\n - The Guariquies 1 well was successfully completed as a commercial\n oil producer.\n\n - An appraisal/development program has been proposed by the operator\n (Ecopetrol) to use the rig currently on location to undertake a\n second well as soon as site works are completed.\n\n - The Guariquies 1 discovery is near existing oil fields and is\n located within ten kilometers of existing oil handling and\n pipeline facilities.\n\n - Nearby fields are characterized by having wells with modest\n individual well production rates but having significant reserves\n and relatively low development costs.\n\n - It is expected that new discoveries can be brought on stream\n quickly and without significant up front capital investment for\n production facilities and pipelines.\n\n - In recognition of the commercial completion of the well, the\n transfer of interest from Ramshorn to Solana in Guariquies 1 has\n been approved, so that in future wells Solana will participate\n directly in the Shared Risk Contract and will pay 37.5% of the\n costs and receive 33.75% of any future production.\n\n - The Guariquies 1 well is part of an active Solana program in\n Colombia consisting of approximately 700 kilometers of seismic and\n ten additional exploration wells planned for the next eighteen\n months.\n\nShared Risk Contract\n\nThe Guariquies 1 well was drilled under the terms of a Shared Risk\nContract between Ecopetrol (the Colombian State Oil Company) and Ramshorn\nInternational (\"Ramshorn\"). Solana participated in the well under the terms of\na commercial agreement whereby Solana paid 96% of Ramshorn's share of the\ninitial well cost to casing point to earn 75% of Ramshorn's 45% working\ninterest. On Feb 28th 2006, in recognition of the commercial completion of the\nwell, Solana received notice from Ecopetrol that a transfer of interest from\nRamshorn to Solana in Guariquies 1 had been approved. In future wells Solana\nwil...