Solana Resources Limited – Los Aceites-1 Flows 5,645 Barrels of Oil per Dayadmin
Solana Resources Limited, announce that the Los Aceites-1 exploration well flowed 41 (degrees) API oil at an average rate of 5,645 barrels of oil per day (bopd), gross, over a continuous 48 hour period.
Los Aceites-1 reached a total measured depth of 7,108 feet on August 11, 2008, and following initial completion operations that achieved surface facility constrained rates in excess of 5,000 bopd gross, with 5% water cut during a brief, 4.5 hour, clean up, a short term test was initiated on September 27, 2008.
The short term test spanned a continuous 80 hour period, wherein the well was flowed at three different choke sizes testing a ten foot interval, 6,874 to 6,884 feet, in the Carbonera C-7 formation.
For the last 48 hours of the test, Los Aceites-1 flowed 41 (degrees) API oil on a 98/64″ choke, with 75 psi tubing head pressure, at an average rate of 5,645 bopd gross, 3,160 bopd net of royalty to Solana. During this 48 hour period only four barrels of water were produced resulting in an insignificant water cut of 0.04%.
In the latter part of test, the well exhibited signs of cleanup, demonstrated by slowly increasing flow rates. Analysis of pressure data from this test confirms permeabilities in excess of three darcies and that the 5,645 bopd rate was achieved with less than a 15% drawdown, which is indicative of significant incremental flow potential.
Los Aceites-1 is currently shut in pending government approval of an extended test. Solana expects to initiate this extended test in mid to late October. In anticipation, the Company is currently planning the construction of centralized permanent facilities at the nearby Primavera-1 location; site of the Company’s other 2008 Guachiria discovery well. For the near term, all production will continue to be trucked.
As a result of the exceptional flow rates encountered at Los Aceites-1, the Company is revisiting its mapping of the Los Aceites prospect with a view to establishing potential field limits. Based on the Company’s current understanding, one additional well may be required in this field.
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. contract, the Colombian state oil and gas company, and attracts an additional 13% Ecopetrol S.A. overriding royalty that is applied after government royalties.