CALGARY, March 26 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) announces that the Calcedonia-1 well located in the Guachira Norte Block in the Llanos Basin, Colombia, has been plugged and abandoned. This well was drilled to a total depth of 8,138 feet and successfully penetrated a large Carbonera C7 structure that had oil shows and excellent reservoir parameters. Subsequent extensive testing proved the structure was water bearing. Solana is the operator of the Guachira Norte Block with a 70% working interest. Pursuant to a farm out agreement Solana was responsible for only 40% of the Calcedonia-1 well costs.
In the immediate vicinity there remains a significant Carbonera C5 target which the Company intends to test in the near future. Activity in the Llanos Basin, which includes drilling the Bevea-1 exploration well and the acquisition of over 300 square kilometres of 3-D seismic data, is part of a wider extensive exploration and development program for the first half of 2007. This program includes drilling two wells in the Putumayo Basin (Juanambu-1 has already been press released as a discovery) and an additional two wells in the Catatumbo Basin. This program is fully funded with existing resources.
Mr. Glenn Van Doorne, Chief Operating Officer of Solana, a Petroleum Geologist, is the qualified person who has reviewed the technical information contained in this news release.
Forward Looking Statements
Certain information regarding the Company, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities law and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and ability to access sufficient capital from internal and external sources; as a consequence, actual results may differ materially from those anticipated.
Solana Resources Limited
Solana (www.solanaresources.com) is an international resource company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company's properties are located in Colombia, South America and are held through its wholly owned subsidiary, Solana Petroleum Exploration (Colombia) Limited. The Company is headquartered in Calgary, Alberta, Canada.
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