CALGARY, May 29 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) is pleased to announce the conclusion of a successful drill stem testing (DST) program on the recently drilled Juanambu-1 well, in the Guayuyaco Block, Putumayo Basin, southern Colombia.
Six different reservoir intervals, the Lower Caballos, Middle Caballos, Villeta T sand, Villeta U sand, Villeta A limestone and the Rumiyaco Kg sand, were tested through separate DST's. Viable test rates were obtained from four of the six zones. Further to the preliminary results for DST's 1 and 2 released May 9, 2007, the final results for DST's 1, 2, 3, and 6 follow.
DST-1 perforated and tested intervals 2,755.7 - 2,757.2 m and 2,757.8 - 2759.7 m (9,041 - 9,046 ft and 9,048 - 9,054 ft), a total of 3.4 m (11 ft) in the Lower Caballos. After recovering 4 m(3) (23 bbls) of oil and 6 m(3) (38 bbls) of water from swabbing, the well was flowed naturally for 14 hours and produced 11 m(3) (71 bbls) of oil with a density of 0.864 (32 degrees API). The final flow rate was 12 m(3)/day (77 bopd) and still increasing with no gas and only traces of water.
DST-2 perforated and tested intervals 2,742.6 - 2,744.4 m and 2,745.0 - 2,750.2 m (8,998 - 9,004 ft and 9,006 - 9,023 ft), a total of 7.0 m (23 ft), in the Middle Caballos. After recovering 6 m(3) (38 bbls) of oil and 5 m(3) (33 bbls) of water from swabbing, the well was flowed naturally for 24 hours and produced 57 m(3) (355 bbls) oil with a density of 0.863 (33 degrees API), 14,345 m(3) (507 mcf) of gas and 1 m(3) (6 bbls) of water. The final flow rate was 59 m(3)/day (371 bopd) and still increasing with an insignificant Gas to Oil Ratio (GOR) and a 1% water cut.
DST-3 perforated and tested intervals 2,702.7 - 2,707.2 m and 2,708.5 - 2,715.8 m (8,867 - 8,882 ft and 8,886 - 8,910 ft), a total of 11.9 m (39 ft), in the Villeta T sand. After recovering 2 m(3) (13 bbls) of oil and 6 m(3) (36 bbls) of water from swabbing, the well was flowed naturally for 29.5 hours and produced 26 m(3) (164 bbls) oil with a density of 0.869 (31 degrees API) and 2,646 m(3) (94 mcf) of gas. The final flow rate was 34 m(3)/day (214 bopd) and still increasing with an insignificant GOR and a 1% water cut.
DST-6 perforated and tested the interval 2,436.9 - 2,441.4 m (7,995 - 8,010 ft), a total of 4.6 m (15 ft), in the Rumiyaco Kg sand. After recovering 3.2 m(3) (20 bbls) oil and 2.6 m(3) (17 bbls) from swabbing the well was tested with a jet pump. The well was tested over 14.4 hours at flow rates as high as 34 m(3)/day (214 bopd) and produced a total of 15 m(3) (95 bbls) oil with a density of 0.937 (20 degrees API), 295 m(3) (10 mcf) of gas and 2 m(3) (13 bbls) of water.
The Villeta U sand and Villeta A limestone (through DST's 4 and 5) tested sub-commercial and no oil flow rates respectively.
The well is currently being configured for production including the installation of a jet pump. Jet pumps have yielded significant increases in production above natural flow rates in adjacent producing fields.
In summary, the well tested at a combined rate of 139 m(3)/day (876 bopd), from 26.8 m (88 ft) of perforations, over four separate zones. The oil quality is better and the reservoir performance is superior than in neighbouring fields. Final test results are being integrated into a declaration of commerciality application to be submitted to Ecopetrol, the Colombian State oil and gas company. Early production will be trucked to nearby facilities. Longer term, the construction of a pipeline and additional facilities will be required to handle increased production.
Solana has a 50% interest in the Juanambu field with Gran Tierra Energy Inc., the operator, holding the other 50% interest. Ecopetrol has a 30% interest back-in right on commercial discoveries and to the extent such right is exercised each of the interests of Solana and Gran Tierra will be reduced to 35% in this field.
Upon completion of operations, the service rig will be released and mobilized to the Costayaco-1 exploration well in the adjacent Chaza Block. On May 14, 2007, Solana announced that Costayaco-1 was a potential new field discovery with similar hydrocarbon shows, well logs and productive lithological package to Juanambu-1. Solana holds a non-operated 50% working interest in the Chaza 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.
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, 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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