Llanos Basin - Colombia
CALGARY and LONDON, April 14 /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 Palmitas-2 exploration well located on the Guachiria Sur block in Colombia's Llanos Basin.
Drilling commenced on Palmitas-2 on March 21, 2008, and reached a total depth of 6,905 feet on March 28, 2008. Initial log interpretations and MDT tests indicate potential oil pay in the Carbonera C-7 Formation where light oil was encountered.
A Serinco service rig is currently being mobilized to test Solana's Primavera-1 potential light oil discovery on the adjacent Guachiria block. Upon completion of testing operations at Primavera-1, anticipated to be the end of this month, the service rig will be moved to Palmitas-2 and commence completion and testing operations. Testing operations should take approximately two weeks.
Solana is the operator and holds a 100% working interest in the Guachiria and Guachiria Sur blocks. Lewis Energy Colombia holds a 30% beneficial interest in both blocks. The blocks are subject to fiscally attractive Agencia Nacional de Hidrocarburos contracts. The Guachiria block also attracts an additional 13% overriding royalty, applied after government royalties, to Ecopetrol, the State oil and gas company.
The Pioneer-52 drilling rig was released on April 8, 2008, and is currently moving to Solana's Topocho-1 location on the Garibay block, Llanos Basin. Drilling is expected to start at Topocho-1 prior to month end. Solana holds a 50% working interest in this block. CEPCOLSA is the operator and holds the remaining 50% working interest.
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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