Shona Tests 2nd Development Well in Colombia

Shona through its wholly-owned subsidiary, Geoproduction Oil & Gas Company ("Geoproduction") of Colombia, announced the successful completion and testing of the Nelson-4 development well, a northeast offset to the Nelson-2 discovery well, located within the Esperanza concession in the Lower Magdalena Basin of Colombia. This concession is 100% retained and operated by Geoproduction.

"Nelson 4 has significant production capacity which gives us the opportunity to expand our existing sales commitments," said James L. Payne, CEO of Shona. "The current drilling results have ensured that we are developing a significant gas accumulation at the Nelson field while at the same time we can continue to pursue additional exploration prospects on the concession."

Nelson-4 has an estimated 152 feet of net pay in the Cienaga de Oro formation. A total of 133 feet was perforated and tested at a rate of 6.1 million cubic feet per day (MMCFPD). The calculated absolute open flow was 264 MMCFPD. The Nelson-2 discovery and Nelson-3 development wells had test rates of 8.5 MMCFPD and 11.6 MMCFPD, respectively. Nelson-3 is a southwest offset to Nelson-2. All Esperanza production facilities have been installed and Shona expects final commissioning of gas processing systems to be complete by the first part of November.