NEWS > Los Aceites-1 Flows 5,645 Barrels of Oil per Day
posted on Oct 08, 2008 10:10PM
(Edit this Message from the "Fast Facts" Section)
SOLANA RESOURCES LIMITED
Transmitted by CNW Group on : October 9, 2008 02:01
Solana Resources Limited ("Solana" or the "Company") - Los Aceites-1 Flows 5,645 Barrels of Oil per Day
Guachiria Block - Llanos Basin - Colombia
CALGARY and LONDON, Oct. 9 /CNW/ - Solana Resources Limited (TSX-V: SOR;
AIM: SORL), is pleased to 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.
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.
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.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
RELEASE. THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
/For further information: Enquiries: Solana Resources Limited: Scott
Price, Ricardo Montes, [email protected], [email protected],
(403) 770-1822, (403) 770-1822; Nabarro Wells & Co. Limited: (Nominated
Adviser), Marc Cramsie, [email protected], +44 20 7634 4705; Tristone
Capital Limited: (UK Broker), Nick Morgan, [email protected], +44
207 355 5800; Pelham Public Relations: Philip Dennis, James MacFarlane,
[email protected], [email protected], +44 207 743 6363,
+44 207 743 6375/