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Solana Resources Limited ("Solana" or the "Company") - Colombia Production & Field Development Plan Update
Solana Resources Limited ("Solana" or the "Company") - Colombia Production & Field Development Plan Update.
About this update from Kutcho Copper Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Sept. 26 /CNW/ - Solana Resources Limited (TSX-V: SOR;\nAIM: SORL) is pleased to announce that its average production (net after\nroyalties) since September 10, 2007, has increased almost three fold from\nJanuary this year to approximately 1,450 barrels of oil equivalent per day.\nThis total comprises approximately 1,290 barrels of oil per day (bopd) and\n955 thousand cubic feet of gas per day.\n\n\nThis increase is reflective of new production from the Juanambu and\nCostayaco oilfields discovered in the first half of 2007. Staged field\ndevelopment programs on both fields have been initiated which should allow for\ncontinued production growth through 2008.\n\n\nCostayaco Field\n\n\n----------------\n\n\nLocated on the Chaza Block, Putumayo Basin, first development stage\ntrucking of Costayaco-1 production to existing facilities has been\nimplemented. Costayaco-1 has been averaging approximately 1,750 bopd gross\nsince September 10 (805 bopd net of royalties to Solana) on natural flow from\nselected zones. Costayaco-1's production rate is currently limited by trucking\ncapacity.\n\n\nThe first development stage also includes drilling two development wells\ncommencing late in the fourth quarter of 2007 and continuing into 2008. To\nassist with future development drilling location selection, a 70 square\nkilometre 3-D seismic program, covering the entire field, has also been\ninitiated and will be completed by the end of the fourth quarter of 2007.\n\n\nAdditionally, a ten kilometre eight inch pipeline, tying into existing\ninfrastructure, is being designed to replace trucking operations. This\npipeline will have sufficient capacity to handle estimated full field\ndevelopment volumes, although initial throughput will be limited to existing\ninfrastructure capacity which is estimated at 5,000 to 6,000 bopd. This line\nis anticipated to be operational in the second quarter of 2008. A second stage\nof development drilling and infrastructure construction will be contingent on\nthe results of these initial wells.\n\n\nJuanambu Field\n\n\n--------------\n\n\nA staged development program is also being implemented at Juanambu in the\nGuayuyaco Block which is directly east of the Chaza Block in the Putumayo\nBasin. Production testing has been completed and the application process for\ncommerciality is continuing. A six kil...