CALGARY, June 20 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) is pleased to announce partial preliminary test results for the Costayaco-1 wildcat exploration well. Costayaco-1 is located in the Chaza Block, Putumayo Basin, southern Colombia. Solana holds a 50% working interest in the Chaza Block with Gran Tierra Energy Inc., the operator, holding the other 50% interest.
Costayaco-1 reached a total measured depth of 2,612 meters (8,570 feet) on May 10, 2007. A four formation, six zone cased hole testing program commenced on June 10, 2007 and as of June 20, 2007, Drill Stem Tests (DST) have been completed on the first three zones, the lower Caballos, the middle Caballos and the lower Villeta T. To date the well has tested a combined 635 m(3)/day (3,997 bopd) from 32.6 m (107 ft) of perforations.
The DST-1 interval, 2.4m (8 ft), testing the lower Caballos, was selected to test a potential oil water contact. After initial swabbing the well started to flow naturally, reaching a maximum oil rate of 33 m(3)/day (206 bopd) with only traces of water. A review of available data indicates no evidence of an oil water contact.
DST-2, tested a thick, 29.0 m (95 ft), middle Caballos interval and included the zone perforated for DST-1. After one swab the well started to flow naturally, reaching a maximum oil rate of 422 m(3)/day (2,655 bopd) with only traces of water.
The DST-3 interval, 3.7 m (12 ft), testing the lower Villeta T, was selected to test a potential oil water contact. After swabbing, the well started to flow naturally, reaching a maximum oil rate of 213 m(3)/day (1,342 bopd) with only traces of water. A review of available data indicates no evidence of an oil water contact. Detailed test results of the three DST's, in both metric and English units, are contained in the tables below.
------------------------------------------------------------------------- Test Number DST - 1 DST - 2 DST-3 ------------------------------------------------------------------------- Formation Lower Caballos Middle Caballos Lower Villeta T ------------------------------------------------------------------------- Gross Interval (m) 2,577 - 2,582 2,532 - 2,582 2,506 - 2,510 ------------------------------------------------------------------------- Perforated Interval (m) 2.4 29.0 3.7 ------------------------------------------------------------------------- Flow Type Natural Natural Natural ------------------------------------------------------------------------- Maximum Oil Flow Rate (m(3)/d) 33 422 213 ------------------------------------------------------------------------- Final BS&W (%) 0 0 0 ------------------------------------------------------------------------- Total Flow Time (hrs) 10.5 32 13 ------------------------------------------------------------------------- Total Oil Produced (m(3)) 12 286 91 ------------------------------------------------------------------------- Oil Density (kg/m(3)) 876 871 876 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Test Number DST - 1 DST - 2 DST-3 ------------------------------------------------------------------------- Formation Lower Caballos Middle Caballos Lower Villeta T ------------------------------------------------------------------------- Gross Interval (ft) 8,456 - 8,471 8,308 - 8,471 8,222 - 8,234 ------------------------------------------------------------------------- Perforated Interval (ft) 8 95 12 ------------------------------------------------------------------------- Flow Type Natural Natural Natural ------------------------------------------------------------------------- Maximum Oil Flow Rate (bopd) 206 2,655 1,342 ------------------------------------------------------------------------- Final BS&W (%) 0 0 0 ------------------------------------------------------------------------- Total Flow Time (hrs) 10.5 32 13 ------------------------------------------------------------------------- Total Oil Produced (bbls) 76 1,796 572 ------------------------------------------------------------------------- Oil Quality (API) 30 31 30 -------------------------------------------------------------------------
Testing will continue with DST-4 in the overlying main Villeta T interval and then two additional DST's in the Villeta U and the Rumiyaco KG sands. Initial log interpretations, combined with hydrocarbon shows encountered during drilling, indicate reservoir quality sandstones with potential oil pay in these zones. Additionally, these zones are productive in the nearby Santana Block, as well as in the recently tested Solana/Gran Tierra Juanambu-1 well located on the adjacent Guayuyaco block.
The Pride-17 drilling rig, used to drill Costayaco-1, is expected to be available for additional drilling as of October of this year. To optimize drilling locations, a near term seismic infill program over the Costayaco structure is being considered.
Costayaco-1 is proximal to infrastructure allowing for early monetization of commercial production. The Chaza block is subject to a fiscally attractive Agencia Nacional de Hidrocarburos royalty/tax contract with no additional state participation.
Costayaco-1 is the Company's second Putumayo Basin new field discovery in the last three months. The Juanambu-1 discovery was announced March 19, 2007, and commercial production will commence as soon as regulatory approval is obtained.
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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