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CALGARY, March 19 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) is pleased to announce that the Company has successfully drilled and logged a potential new field wildcat well, Juanambu-1, in the Guayuyaco Block, Putumayo Basin, in southern Colombia. Pursuant to a farm in agreement on the Guayuyaco Block Solana is required to pay 67% of the Juanambu-1 well costs to earn a 50% working interest. Ecopetrol, the Colombian State oil company, has a 30% interest back-in right on commercial discoveries and to the extent such right is exercised Solana's interest will be reduced to 35% in this block with Gran Tierra Energy, Inc. ("Gran Tierra"), the operator, holding the other 35% interest. Gran Tierra is a public, (OTC Bulletin Board: GTRE.OB), oil and gas exploration and production company with properties in Argentina, Colombia and Peru.
Juanambu-1 reached a total measured depth of 2,790 meters (9,154 feet) on March 10, 2007. The well encountered reservoir quality sandstones with hydrocarbon shows in four zones. Initial log interpretations indicate potential oil pay in the T Sandstone Unit of the Villeta Formation and in the Caballos Formation. There is additional potential oil pay in the KG Sandstone Unit of the Rumiyaco Formation and in the U Sandstone Unit of the Villeta Formation, subject to confirmation by planned well testing. The four reservoirs encountered are proven producing reservoirs in the adjacent Santana Block operated by Gran Tierra. The Juanambu-1 well bore is currently being cased. A service rig with test equipment will move to the Juanambu-1 location to run a completion string and initiate extensive testing of the hydrocarbon zones commencing in early April. Juanambu-1 is proximal to infrastructure allowing for early monetization of any potential commercial production.
The Pride-17 drilling rig will be mobilized to the adjoining Chaza Block to drill the Costayaco-1 exploration well once Juanambu-1 is cased. The Company currently expects the drilling of Costayaco-1 to commence in early April. Solana has a 50% working interest in the Chaza Block, with Gran Tierra, the operator, holding the other 50% working interest.
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, 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.
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