CALGARY, Oct. 23 /CNW/ - Solana Resources Limited (TSX-V: SOR; AIM: SORL) is pleased to announce preliminary test results for the Tres Curvas-1 wildcat exploration well yielded a combined 180 barrels of oil per day (bopd) from 61 feet of perforations in two Catatumbo formation zones. With the application of appropriate artificial lift it is expected that rates will meet or exceed original expectations of 300 bopd.
Tres Curvas-1 is located in the Catguas Block, Catatumbo Basin, north eastern Colombia. Solana is the operator of the Catguas Block with a 100% working interest. Trayectoria Oil and Gas, Sucursal Colombia holds a 15% beneficial interest in the portion of the block containing the Tres Curvas-1 well.
Tres Curvas-1 reached a total measured depth of 3,550 feet (3,518 true vertical depth) on September 11, 2007 and a five zone cased hole testing program commenced on September 16, 2007.
The drill stem tests (DST) and the logs and sidewall cores have respectively confirmed that the targeted zones are significantly under pressured and have high porosities and permeabilities. This combination most likely resulted in formation damage during drilling which in all probability restricted fluid inflow during testing.
DST-1 tested a 42 feet interval (3,362 - 3,404 feet) in the Catatumbo formation. This interval was swabbed for three days and had a final swab rate of 136 bopd (32 degrees API) with a 17% water cut. Subsequently, a jet pump test was performed, however, a mechanical failure resulted in un-interpretable data. Solana plans to re-evaluate this zone.
DST-2 tested an 18 foot interval (3,338 - 3,356 feet) in the Catatumbo formation. This interval was swabbed for two days and briefly produced 56 bopd with a 20% water cut after which the well stopped producing. Solana feels the DST-2 interval has formation damage and plans to re-evaluate this zone after an acid wash stimulation.
DST-3 tested a 19 foot interval (3,258 - 3,274 and 3,277 - 3,280 feet) in the upper part of the Catatumbo formation. This interval was swabbed for three days and had a final swab rate of 44 bopd (28 degrees API) with a 60% water cut. Further evaluation of the data is ongoing.
DST-4 tested a 56 foot interval (3,074 - 3,116 and 3,122 - 3,136 feet) in the lower Barco formation. This interval was swabbed for one day and produced 100 barrels of water and a trace of oil.
DST-5 tested a 14 foot interval (1,678 - 1,692 feet) in the Los Cuervos formation. This interval was swabbed for two days and produced 124 barrels of water and a trace of oil.
Due to a regulatory requirement to have reached total depth at Cocodrilo-1 before November 27, 2007, Solana has decided to cease testing at Tres Curvas-1 with the DWS drilling rig and move this rig to Cocodrilo-1 immediately. Cocodrilo-1 is the sixth well in Solana's 2007 six well exploration program, and the second of the two well program Solana is undertaking on the Catguas Block. Cocodrilo-1 is anticipated to spud around November 9, 2007. To date, Solana has had three successes in its 2007 exploration drilling campaign.
Given the initial positive Tres Curvas-1 results, further testing to determine optimal flow rates and initial reserves is required. A service rig is being sourced to undertake this evaluation.
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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