CALGARY and LONDON, UK, March 12 /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 Primavera-1 well located on the Guachiria Block in Colombia's Llanos Basin.
Drilling commenced on Primavera-1 on February 20, 2008 and reached a total depth of 7,405 feet on March 1, 2008. Initial log interpretations, MDT tests and sidewall cores indicate potential oil pay in the Carbonera C-7 Formation, where 40 degrees API oil was encountered, and in the Carbonera C-5 Formation, where oil shows were observed.
A service rig is being mobilized to test the hydrocarbon reservoirs encountered. Testing operations are scheduled to begin in mid-April and to be completed by the end of April.
The Pioneer-52 drilling rig was released on March 8, 2008 and is currently moving 12 km to Solana's Palmitas-2 location on the Guachiria Sur Block. Drilling is expected to start at Palmitas-2 in mid-March and be completed by the end of March.
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.
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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