CALGARY and LONDON, March 5 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) announces a temporary suspension of testing activities at Solana's Tres Curvas-1 well, located in the Catguas Block, Catatumbo Basin, in response to increased security incidents in this area. A revised security protocol is being instituted in cooperation with the Government of Colombia and should allow testing to recommence in a few weeks. Solana's 2008 Catguas Block plans, including the drilling of two exploration wells and the acquisition of 50 km(2) of 3D seismic data and 132 line-km of 2D data, have not changed. The increased security protocol will impact the costs and timing of these activities.
The highly prospective 1,591 km(2) Catguas Block borders Venezuela and is immediately west of the 255 million barrel Tibu field. In view of the superior exploration potential of this block, Solana is committed to executing the 2008 work program which contemplates activity in excess of minimum contractual commitments.
Solana is the operator of the Catguas Block with a 100% working interest. Trayectoria Oil and Gas, Sucursal Colombia holds a 15% beneficial interest in 70% of the block and a 50% beneficial interest in the remainder.
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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