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Gold/Mining/Energy : Solana Petroleum Corp -- Ignore unavailable to you. Want to Upgrade?

To: raisinkane who wrote (119)	10/12/1999 2:15:00 PM
From: Ed Pakstas	Respond to of 1747

*NEWS RELEASE* Solana subsidiary forms syndicate Solana Petroleum Corp SOP Shares issued 16,546,964 Oct 8 close $0.86 Tue 12 Oct 99 News Release Also Nikos Explorations Ltd (NIK) Also Bell Coast Capital Corp (BCP) Also Vital Pacific Resources Ltd (VPR) Also New Energy West Corp (NEC) Mr. James Taylor reports Solana Petroleum's subsidiary, Solana Petroleum California LLC has formed a syndicate to participate in its 100-per-cent working interest in its farm in to ABA Energy Corporation's 40-acre tract on the Cal Canal anticline near Bakersfield in the Southern San Joaquin basin of Kern county, Calif. Solana California has retained a participating interest of 25 per cent in the well. Participants in the Solana California gas exploration syndicate and their respective participating interests are as follows: Symbol/ Participating Stock Interest Exchange (%) Solana California 25.00 Private investor 25.00 Tether Investments NV 18.75 New Energy West Corp. NEC/ASE 12.50 Vital Pacific Resources Ltd. VPR/VSE 6.25 Bell Coast Capital Corp. BCP/VSE 6.25 Nikos Explorations NIK/VSE 6.25 Total 100.00 According to a report by an independent consulting geologist/geophysicist, based in Bakersfield, the ABA/Solana tract is thought to be totally within the Cal Canal anticline's structural closure, approximately 1,500 feet from Berkley Petroleum's Cal Canal No. 1 exploratory well. Cal Canal No. 1 is reportedly drilling at a depth of about 14,000 feet, at or near the top of the Miocene Temblor formation. By drilling an exploratory well deep gas test to a specified depth within the Temblor formation below 14,500 feet and establishing paying production therefrom, the syndicate can earn a 100-per-cent working interest and a revenue interest after payout ranging from 78.5 per cent to 54.0 per cent depending on various back-in options available to ABA. ABA will be operator for the drilling of the well, and retains the option to take a 5-per-cent working interest in the tract prior to any drilling. The Temblor formation, which is estimated to be ar least 4,000 feet thick and to contain multiple, thick, stacked reservoir sands at Cal Canal, is productive at the giant Elk Hills field to the southeast at about 10,000 feet, and at Lost Hills, where Berkley has encountered gas and condensate at 17,650 feet. Through 1997, the Temblor formation although lightly explored, had produced a total of 115 million barrels of oil, principally from the McKittrick, Cymric and North Belridge fields. The five main oil fields comprising the Southern San Joaquin basin have produced a total of 1.2 billion barrels from all formations during the same period. At Cal Canal, the Temblor is thought to be gas-bearing, with additional potential for retrograde condensate and light oil reservoirs in multiple horizons. Under certain circumstances, the syndicate will have rights to Stevens' formation production, which presently produces gas and condensate at Cal Canal, at a depth of approximately 11,000 feet. In addition to its participating interest of 25 per cent, Solana California will be entitled to a carried interest for its role in acquiring the prospect and organizing the syndicate. This will give Solana California an additional 10.8-per-cent revenue interest, for a total revenue interest in the project of 21.6 per cent, after all payouts. Solana also holds a 38.125-per-cent interest in the Tapir association contract in the Llanos basin of Eastern Colombia, where its first exploratory well tested oil in the Mateguafa No. 1 carrier earlier this year. Appraisal drilling at Mateguafa will commence in the fourth quarter of this year. A rig contract for the drilling of Mateguafa No. 2 and a drilling AFE are expected to be approved at a meeting of the Tapir association technical committee in Houston on Oct. 20. The company recently announced the pending acquisition of up to an additional 11.875 per cent of the Tapir contract from Seven Seas Petroleum Colombia, Inc., which when completed, will give Solana a 50-per-cent working interest in the contract. The company also holds right to earn a 50-per-cent interest in the 126,000-acre Cano Caranal association contract, also in the Llanos basin of Colombia, where a number of large structures are being evaluated for possible drilling. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com