Business
Solana Resources Limited ("Solana" or the "Company") Operations Update & Management Change
Solana Resources Limited ("Solana" or the "Company") Operations Update & Management Change.
About this update from Kutcho Copper Corp
[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 13 /CNW/ - Following a recent strategic review and\nconsolidation of its Colombian asset portfolio Solana Resources Limited\n(TSX-V: SOR; AIM: SORL) is pleased to announce planned participation in six\nexploration wells and the acquisition of 320 km2 of 3D seismic over the next\nsix months. These activities will be fully funded from existing capital\nresources. Solana plans to drill two wells in each of the Llanos, Putumayo,\nand Catatumbo basins. In general these wells are characterized as having\nSolana as the operator with a high working interest and attractive fiscal\nterms.\n\n\nLlanos Basin Activities\n\n\nSolana has operated interests in five blocks in the Llanos Basin being,\nGuachiria Norte, Guachiria, Guachiria Sur, Gaviotas and Garibay. Yalea-1,\ndrilled in 2006 on the Guachiria block, is currently producing 90 barrels of\noil per day (\"BOPD\") net of royalties to Solana.\n\n\nGuachiria Norte\n\n\nA rig has been contracted and the surface location is currently being\nconstructed for the Calcedonia-1 well which is anticipated to spud in mid to\nlate February 2007. This well is testing a structure that is defined by 3D\nseismic data, has an expected total depth of 8,000 feet and is targeting\nestimated gross recoverable reserves of 20 million barrels of oil (\"MMBBLS\")\nin the Carbonera formation. Drill, complete and test costs are estimated at\nUS$ 5 million with Solana paying only 40% of these costs even though it has a\n70% working interest. This block is subject to an Agencia Nacional de\nHidrocarburos (\"ANH\") contract which contains Colombia's most attractive\nfiscal terms that have been recently further enhanced with tax rate reductions\nand depreciation rate modifications.\n\n\nGuachiria & Guachiria Sur\n\n\nBased on the enhanced prospect identification and delineation evidenced\nby the existing Guachiria Norte 3D seismic, Solana is acquiring 3D seismic\nover the entire Guachiria block and a significant portion of the Guachiria Sur\nblock, both of which are immediately contiguous to Guachiria Norte. The\nacquisition of 220 km2 of 3D seismic is currently in progress. Seismic\nacquisition, processing and interpretation costs are estimated at US$\n7.5 million, with Solana responsible for 70% of this cost.\n\n\nGaviotas\n\n\nPending positive results of a chemical survey, Solana intends t...