CALGARY and LONDON, UK, June 10 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) announces that the Topocho-1 well, testing a structure identified on 3-D seismic and located on the Garibay block in the Llanos Basin, Colombia, has been plugged and abandoned.
In November 2007, Solana farmed out 50% and operatorship of the Garibay block to CEPSA Colombia SA ("CEPCOLSA"). Under the farmout terms, Solana retains a 50% working interest in the Garibay block and CEPCOLSA is responsible for 100% of the drilling, completing and testing costs associated with the Topocho-1 well.
CEPCOLSA is a wholly owned subsidiary of Compania Espanola de Petróleos, S.A. ("CEPSA"), the Spanish based diversified energy company. The Garibay block is subject to a fiscally attractive Agencia Nacional de Hidrocarburos contract.
The well reached a total depth of 8,920 feet on May 8, 2008, and following logging and pressure gradient tests, was cased. Cased hole drill stem tests were subsequently conducted in the Gacheta, Guadalupe and Mirador formations but failed to yield oil. Drilling and testing was performed with the Pioneer Rig 52 that is under long term contract to Solana.
Over the coming months, Solana will evaluate its continued involvement in the Garibay block.
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.
Further to the announcement released on May 30, 2008, by Solana concerning a change to the board of directors, the Company now provides additional information on Mr. Morelli to be disclosed pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies as follows:
Full Name: Luis Miguel Morelli Age: 48
There are no other matters to be disclosed pursuant to Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies for this director.
Solana is pleased to announce that its Annual Report, containing its audited financial statements and management's discussion and analysis for the year ended December 31, 2007, was mailed to shareholders on April 10, 2008.
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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