CALGARY, June 5 /CNW/ - Solana Resources Limited which conducts
exploration development and production activities in 14 blocks in Colombia
announces the results of the Guariquies 2 well, drilled as an appraisal well
to the Guariquies 1 discovery made in March 2006. The Guariquies 1 discovery
tested oil at commercial rates from the Mugrosa Formation at approximately
5,000 ft.
Guariquies 2, drilled from the same surface location as Guariquies 1, was
deviated 1,600 feet to the west of Guariquies 1 with the objective of
penetrating a thicker gross sand section at a higher structural elevation than
at the discovery well. Post drilling evaluation of Guariquies 2 confirms that
the target Mugrosa reservoir section was encountered approximately 770 feet
higher than at Guariquies 1 and that the gross section was more than 800 feet
thicker than at the discovery.
Guariquies 2 has encountered predominantly gas in the two main sands
penetrated in the well. The lower zone, from 5,953 to 5,982 feet, produced gas
though a 36/64 inch choke at a stable rate of 0.70 million cubic feet per day.
The upper zone, from 4,971 to 5,004 feet produced gas through a 36/64 inch
choke at a stable rate of 0.74 million cubic feet per day and also produced
8 barrels of 24 degree API oil.
The Guariquies 2 well has been suspended and the drilling rig used to
drill the Guariquies 1 and 2 wells has now been released. The Guariquies 1
well is expected to be put on long term test in approximately one month. Oil
produced during the test is expected to be trucked to a receiving point
located approximately 10 kilometers from the well location.
Activity continues to execute the previously proposed plan to continue to
appraise the Guariquies discovery to the north with at least two more
appraisal wells. The first of these, Guariquies 3, is expected to be located
4.6 kilometers to the north of the discovery. The environmental license for
the Guariquies 3 location is in progress.
Solana participates directly in the Shared Risk Contract, with Ecopetrol
and Ramshorn, and paid 37.5% of the costs and will receive 33.75% of the
production of Guariquies 2 and all future Guariquies wells.
Menno Wiebe, Vice President Exploration of Solana, a Petroleum Geologist,
is the qualified person that has reviewed the technical information contained
in this press release.
Solana is a resource exploration and production company headquartered in
Calgary, Alberta, Canada. The Company is engaged in the exploration for and
the acquisition, development and production of oil and natural gas. The
Company's exploration and development properties are located in Colombia,
South America through its wholly owned subsidiary, Solana Petroleum
Exploration Colombia Limited ("Solana Colombia").
This release may contain forward looking statements within the meaning of
the "safe harbor" provisions of US laws. These statements are based on
management's current expectations and beliefs and are subject to a number of
risks and uncertainties that could cause actual results to differ materially
from those described in the forward looking statements. Solana does not assume
any obligation to update any forward looking information contained in this
news release.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
