• Costayaco – 1 has tested a combined 3997 bopd to date.
• The Pride 17 drill drilling rig used to drill Costayaco 1 will be available for additional drilling in October 2007
• Costasyaco one is proximal to infrastructure allowing for early commercial production
• The Chaza block is subject to attractive fiscal terms
• Testing will continue on an additional two zones
Solana Resources Limited announces partial preliminary test results for the Costayaco-1 wildcat exploration well. Costayaco-1 is located in the Chaza Block, Putumayo Basin, southern Colombia. Solana holds a 50% working interest in the Chaza Block with Gran Tierra Energy Inc., the operator, holding the other 50% interest.
Costayaco-1 reached a total measured depth of 2,612 meters (8,570 feet) on May 10, 2007. A four formation, six zone cased hole testing program commenced on June 10, 2007 and as of June 20, 2007, Drill Stem Tests (DST) have been completed on the first three zones, the lower Caballos, the middle Caballos and the lower Villeta T. To date the well has tested a combined 635 m3/day (3,997 bopd) from 32.6 m (107 ft) of perforations.
The DST-1 interval, 2.4m (8 ft), testing the lower Caballos, was selected to test a potential oil water contact. After initial swabbing the well started to flow naturally, reaching a maximum oil rate of 33 m3/day (206 bopd) with only traces of water. A review of available data indicates no evidence of an oil water contact.
DST-2, tested a thick, 29.0 m (95 ft), middle Caballos interval and included the zone perforated for DST-1. After one swab the well started to flow naturally, reaching a maximum oil rate of 422 m3/day (2,655 bopd) with only traces of water.
The DST-3 interval, 3.7 m (12 ft), testing the lower Villeta T, was selected to test a potential oil water contact. After swabbing, the well started to flow naturally, reaching a maximum oil rate of 213 m3/day (1,342 bopd) with only traces of water.
Testing will continue with DST-4 in the overlying main Villeta T interval and then two additional DST’s in the Villeta U and the Rumiyaco KG sands. Initial log interpretations, combined with hydrocarbon shows encountered during drilling, indicate reservoir quality sandstones with potential oil pay in these zones. Additionally, these zones are productive in the nearby Santana Block, as well as in the recently tested Solana/Gran Tierra Juanambu-1 well located on the adjacent Guayuyaco block.
The Pride-17 drilling rig, used to drill Costayaco-1, is expected to be available for additional drilling as of October of this year. To optimize drilling locations, a near term seismic infill program over the Costayaco structure is being considered.
Costayaco-1 is proximal to infrastructure allowing for early monetization of commercial production. The Chaza block is subject to a fiscally attractive Agencia Nacional de Hidrocarburos royalty/tax contract with no additional state participation.
Costayaco-1 is the Company’s second Putumayo Basin new field discovery in the last three months. The Juanambu-1 discovery was announced March 19, 2007, and commercial production will commence as soon as regulatory approval is obtained.
