Solana Resources Limited ("Solana" or the "Company") - Farmout Agreement - Garibay Block - Llanos Basin - Colombia

About this update from Kutcho Copper Corp

[{"type":"text","content":"\n\n\n\nCALGARY and LONDON, Dec. 3 /CNW/ - Solana Resources Limited (TSX-V: SOR;\nAIM: SORL) is pleased to announce it has entered into a commercial agreement\nto farmout a fifty percent (50%) interest in the Garibay block, located in\nColombia's Llanos basin, to CEPSA Colombia SA ("CEPCOLSA") a wholly owned\nsubsidiary of Compania Espanola de Petroleos, S.A. ("CEPSA"), the Spanish\nbased diversified energy company.\n\n\nSubsequent to this farmout, Solana and CEPCOLSA will each hold a 50%\nparticipating interest in Garibay. The Garibay block is subject to an\nExploration and Production Contract with Agencia Nacional de Hidrocarburos\n("ANH"), the Colombian Government agency regulating the petroleum sector. The\nfarmout to CEPCOLSA requires the previous approval of ANH to be effective.\n\n\nUnder the terms of the agreement CEPCOLSA will be responsible for 100% of\nthe costs associated with the third phase exploration well which must be\ndrilled by October 2008. CEPCOLSA, the operator of a neighbouring block, will\nalso be the operator of Garibay, subject to the approval of ANH. The\nexploration well location will benefit from the extensive 3D seismic which\nSolana acquired in early 2007.\n\n\nThis farmout furthers Solana's exploration strategy to concentrate on the\nfive contiguous blocks it operates in the eastern portion of the Llanos basin\n(Guachiria, Guachiria Norte, Guachiria Sur, Colona and San Pablo) and the\nhighly prospective operated Catguas block in the Catatumbo basin.\n\n\nSolana Resources Limited\n\n\nSolana (www.solanaresources.com) is an international resource company\nengaged in the acquisition, exploration, development and production of oil and\nnatural gas. The Company's properties are located in Colombia, South America\nand are held through its wholly owned subsidiary, Solana Petroleum Exploration\n(Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.\n\n\nForward Looking Statements\n\n\nCertain information regarding the Company, including management's\nassessment of future plans and operations, may constitute forward-looking\nstatements under applicable securities law and necessarily involve risks\nassociated with oil and gas exploration, production, marketing and\ntransportation such as loss of market, volatility of prices, currency\nfluctuations, imprec...

More updates from Kutcho Copper Corp