Solana Resources Limited ("Solana" or the "Company") - Costayaco-5 Drilling & Operations Update

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[{"type":"text","content":"\n\n\n\nCALGARY and LONDON, Aug. 6 /CNW/ - Solana Resources Limited (TSX-V: SOR;\nAIM: SORL) is pleased to announce that the Costayaco-5 well, a down dip field\ndelineation well located approximately 1,120 meters west of Costayaco-2 and\n1,060 metres north west of Costayaco-1, has been successfully drilled, logged\nand cased. Initial evaluation indicates that Costayaco-5 has potential oil pay\nin four separate formations.\n\n\nThe Costayaco field was discovered in the second quarter of 2007 and is\nlocated in the Chaza block, Putumayo Basin, southern Colombia. The field is\ncurrently producing approximately 7,000 barrels of oil per day ("bopd") gross,\n3,220 bopd net of royalty to Solana.\n\n\nSolana holds a 50% working interest in the Chaza block with Gran Tierra\nEnergy Inc., the operator, holding the balance. This block is subject to an\nAgencia Nacional de Hidrocarburos contract.\n\n\nChaza Block: Costayaco Field\n\n\nCostayaco-5 Drilling and Testing\n\n\nCostayaco-5 reached a total measured depth of 8,703 feet on July 27,\n2008, encountering the same reservoir sequences as the other Costayaco wells\nwith good oil shows in the Rumiyaco Kg formation, the Villeta U and T\nformations and the Upper Caballos formation.\n\n\nInitial log interpretations, combined with cuttings and shows indicate\nexcellent reservoir with fair to good oil saturations in the primary Villeta T\nformation, with thicknesses comparable to previous wells in the field. No\ndefinitive oil-water contact is apparent in the Villeta T however, testing\nwill be required to confirm whether water is present in certain intervals. The\nUpper Caballos also appears to have good oil saturations and thicknesses\ncomparable to previous wells drilled in the field. The Lower Caballos is well\ndeveloped, but appears to be water bearing. The top of the Villeta T and the\ntop of the Caballos were encountered at shallower depths than expected and oil\nshows were encountered deeper than expected in both the Villeta T and the\nUpper Caballos reservoirs; both results have the potential to add significant\nreserves to the west flank of the field. Testing operations are expected to\ncommence in mid August and will take approximately one month to complete.\n\n\nCostayaco-4 Testing\n\n\nCostayaco-4 testing is expected to commence in early August, 2008;\ndelayed due to the t...

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