CALGARY and LONDON, Aug. 25 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL), is pleased to announce that it has successfully drilled, logged, cased and is preparing to test the Los Aceites-1 well located on the Guachiria block in Colombia's Llanos Basin.
Drilling commenced on Los Aceites-1 on August 2, 2008, and reached a total vertical depth of 7,108 feet on August 11, 2008. Initial log interpretations, MDT tests and sidewall cores indicate oil pay in the Carbonera C-7 formation, where 40 degree API oil shows were encountered. Los Aceites-1 encountered the same sand package, with better log characteristics, as in the Primavera-1 well which is located approximately 3.3 km to the north and tested 650 barrels of oil per day from the Carbonera C-7 formation over a 24 hour period.
The Pioneer-52 drilling rig will be used to complete and test the well. Testing operations are anticipated to take approximately two weeks. Following Los Aceites-1 testing, Pioneer Rig 52 will be made available to Petrotesting Colombia S.A. for a two well program in the Llanos basin.
Solana is the operator and holds a 100% working interest in the Guachiria block with Lewis Energy Colombia holding a 30% beneficial interest in the block. The Guachiria block is subject to an Ecopetrol S.A., the State oil and gas company, contract and attracts an additional Ecopetrol S.A. 13% overriding royalty that is applied after government royalties.
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.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF
THIS RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY
FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE