Solana Resources Logs Pay at Puma Well
Solana Resources says that the Puma well in Colombia is being logged following successful sidetracking and redrilling.
The Puma well was drilled to a final total depth of 12,255 ft and logged. While operational difficulties have limited the ability of the participants in the well to obtain all the necessary information to reference the full hydrocarbon potential of the Caballos and the Villeta, the analysis of the available data indicates that the well warrants testing. The definition and approval of the testing program and the mobilization of the necessary equipment will take time so in order to minimize costs, the participants have decided to suspend the well in the interim and replace the large and relatively costly drilling rig with a smaller service rig to conduct drill stem tests on a number of objectives in the well.
The Puma well is the second well drilled under the terms of a Shared Risk Contract between Ecopetrol and Ramshorn International ("Ramshorn"). Solana has a commercial agreement with Ramshorn whereby Solana pays 96% of Ramshorn's share of the initial well cost to casing point to earn 75% of Ramshorn's working interest. Since Ramshorn has a 30% working interest in the Puma project, the net Solana share of any production ultimately obtained from this block will be 18.75%.
Stephen Newton, President Solana Resources Limited commented:
"We continue to believe in the overall potential of the Puma well despite the operational difficulties encountered. Within the next two to three months we hope to have more detailed analysis which will enable us to decide on the potential commerciality of this well.
Solana has become one of the largest holders of exploration acreage in Colombia, and as a result, our work program involves drilling 7 exploration wells on currently held acreage over the next 12 months. We are confident that Solana is well positioned for future growth."