Quetzal Recommences Drilling in Llanos Basin

Quetzal provided an update of drilling operations at the Canaguay # 1 well on the Canaguaro Block in the Llanos Basin of Colombia.

Intermediate 9 5/8 inch casing was cemented at 14,227 feet in the Canaguay #1 well. Drilling operations are expected to resume July 30 and it is anticipated that the well will reach the planned total depth of 16,200 feet within 2 weeks.

Preliminary correlations indicate that Canaguay #1 is approximately 76 feet structurally higher than the offsetting Fortaleza #1 well, which is 3.5 kilometers north of the Canaguay #1 location. Both wells are mapped in the same structure, according to the company's interpretation of the Canaguaro 3D seismic volume. Fortaleza #1 was drilled by Elf - Aquitaine in 1978 and tested 462 barrels of 23 API oil per day from the Mirador Formation.

Canaguay #1 is programmed to test the hydrocarbon potential of several reservoirs including the Carbonera, Mirador, Gacheta, and Une. The Company has a 25% working interest in the Canaguaro Block and is the operator. Partners in the project are Brownstone Ventures (Barbados) Inc. (25% WI a wholly owned subsidiary of Brownstone Ventures Inc (V.BWN)) and Condor Exploration Inc. (50% WI).