Solana Resources Limited ("Solana" or the "Company") - Operational Update

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[{"type":"text","content":"\n\n\n\nCALGARY and LONDON, March 24 /CNW/ - Solana Resources Limited (TSX-V:\nSOR; AIM: SORL) is pleased to announce commencement of testing operations on\nCostayaco-3 and drilling operations on Costayaco-4 in the Chaza Block,\nPutumayo Basin, Southern Colombia. Infrastructure expansions to handle\nPutumayo production continue in parallel. Solana also notes the recommencement\nof testing operations at Tres Curvas in the Catguas Block, Catatumbo Basin,\nand the commencement of drilling operations on Palmitas-2 in the Guachiria Sur\nBlock, Llanos Basin.\n\n\nCostayaco-3, Chaza Block\n\n\nTesting operations on Costayaco-3, the third well drilled in the\nCostayaco light oil field that was discovered in the second quarter of 2007,\ncommenced March 19, 2008. The well is located 950 metres west and down dip of\nthe Costayaco-1 discovery well. Drilling commenced January 25, 2008, and\nreached a total depth of 8,620 feet on February 20, 2008. Costayaco-3\nencountered the same reservoir sequences with similar good oil and gas shows\nas the other Costayaco wells. Initial log interpretations indicate hydrocarbon\npay across the Rumiyaco Kg Formation, the Villeta U Sand Formation, the\nVilleta T Sand Formation and the Caballos Formation. Log quality precludes the\nability to conclusively identify oil water contacts. Drill stem testing will\nbe required to ascertain the nature of the fluid content.\n\n\nTesting operations are expected to take one month. Similar to\nCostayaco-2, which tested at a combined maximum flow rate in excess of 6,600\nbarrels of oil per day (BOPD), only the primary Villeta T and Caballos\nformations will be tested.\n\n\nSolana holds a non-operated 50% working interest in the Chaza block that\nis held under a fiscally attractive Agencia Nacional de Hydrocarburos\ncontract. Gran Tierra Energy holds the other 50% working interest.\n\n\nCostayaco-4, Chaza Block\n\n\nDrilling operations commenced at Costayaco-4 on March 16, 2008, and are\nexpected to take approximately six weeks. This deviated well is being drilled\nfrom the Costayaco-2 surface location targeting a down hole location some\n540 meters to the north. Cores are planned to be taken across the main\nreservoirs.\n\n\nWells Costayaco-5 through -7 are budgeted for the remainder of 2008.\n\n\nCostayaco-2, Chaza Block\n\n\nA long term test is planned for Costayaco-2 ...

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