CALGARY, June 27 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) announces that the Bevea-1 well located in Gaviotas Block, in the Llanos Basin of Colombia will be plugged and abandoned. Bevea-1 was drilled to a total measured depth of 3,802 m (12,475 ft) penetrating the primary objectives, the Mirador and Gacheta formations. While there were minor oil and gas shows during drilling, subsequent well log analysis determined the presence of hydrocarbons in sub-commercial quantities. Solana is the operator of the Gaviotas Block with a 70% working interest. Pursuant to a farm out agreement Solana was responsible for only 40% of the Bevea-1 well costs.
Bevea-1 is the fourth well in the six exploration well drilling program Solana initiated at the beginning of 2007. To date, under this program, Solana has announced two new field discoveries, Juanambu and Costayaco (both in the Putumayo Basin) and two dry holes, Calcedonia-1 and Bevea-1 (both in the Llanos Basin). The impending Tres Curvas-1 and Cocodrilo-1 wells will complete this six well drilling program.
Tres Curvas-1
Tres Curvas-1 is located in the Catguas Block in the Catatumbo basin. The access road and drilling pad have been built and a drilling rig is currently in transit to the well site. This well is expected to spud on or about July 6, 2007 and is targeting a relatively shallow 1,036 m (3,400 ft) Barco formation structure that is defined by 2D seismic and supported by a strong geochemical hydrocarbon anomaly. Tres Curvas-1 is also offsetting a well drilled some 50 years ago which tested oil in the Barco formation.
Cocodrilo-1
Following Tres Curvas-1, the rig will be moved to drill the nearby Cocodrilo-1 wildcat exploration well that is testing a similarly defined shallow Barco structure. Solana is the operator of the Catguas Block with an 85% working interest in the area where these two wells will be drilled.
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, mechanical problems, equipment limitations, 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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