Tres Curvas-1 is located in the Catguas Block, Catatumbo Basin, northeastern 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° API) with 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 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 bo/d (28° API) with 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 Solanas 2007 six well exploration program, and the second of the two well programs 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.
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