Solana Resources Limited – Los Aceites-1 Drilling Update – Llanos Basin – Colombiaadmin
Monday, August 25th 2008
Solana Resources Limited, 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.
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.