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

To: Ed Pakstas who wrote (425)	11/25/1999 10:43:00 AM
From: Taff	Read Replies (1) \| Respond to of 1747

SOLANA PETROLEUM CORP. ANNOUNCES THE EXECUTION OF A DEFINITIVE AGREEMENT TO PARTICIPATE IN WEST VIRGINIA DEEP GAS EXPLORATION PROGRAM SEC 12g 3-2(b) Exemption # 82-4931 CALGARY, Alberta, November 25, 1999 Mr. James B. Taylor reports Solana Petroleum Corp. ("Solana") announced today that it had signed a definitive agreement with Martin Twist Energy Co., LLC of Louisville, Kentucky, in which Solana elected a 25% working interest participation in the Hoff #1 well now drilling in Roane County, West Virginia, and obtained an option to acquire a working interest participation of up to 70% in six additional wells in the immediate vicinity, on a well-by-well basis over the next twenty-four months. The Hoff #1 has been drilled to approximately 2,000 feet after encountering gas shows at 1,200 feet. The drilling rig is currently undergoing rig repairs and is expected to resume drilling in the first week of December to an Ordovician Trenton-Black River deep gas objective at approximately 10,500 feet. The well is being drilled 3,000 feet to the west of Columbia Natural Resources' ("Columbia") third drilling location in their recently-announced "Cottontree" field discovery on the Vineyard Ridge Structure in Roane County. As reported in the "Oil and Gas Journal" of November 8, 1999, Columbia in June of this year announced that the discovery well in the Cottontree field "demonstrated an open flow rate estimated at 50 MMcfd of gas as it was flared during wellhead installation. Bottomhole pressure has held at 6,600 psi through the first month of full production. The second well encountered natural flow of gas at 9,630 feet in the top of the target formation and has characteristics similar in many respects to the discovery." Both wells "penetrated the Trenton-Black River formation and encountered natural gas flows considered extraordinary in the Appalachian Basin, the company (Columbia) said." The "Oil and Gas Journal" went on to report that "Columbia, in early November, was completing construction of an 8-inch gathering system to serve the two wells. It was installing surface equipment to allow the two wells to feed directly into a nearby Columbia Gas Transmission high-pressure interstate (common carrier) pipeline. The six additional exploratory wells in which Solana may participate with Twist Energy are all located on Vineyard Ridge on either side of Columbia's first three well locations in the Cottontree field. A review of existing geologic and seismic data is currently underway to determine the optimum locations for any future drilling, following the receipt of a report on the Twist properties from an independent geologist/ geophysicist Earl Padfield of Bakersfield, California. The review will determine whether additional seismic coverage will be required. Solana's agreement with Twist Energy covers leases totaling in excess of 30,000 acres, 10,000 of which are on Vineyard Ridge. The agreement also includes an area of mutual interest (AMI) covering the entire state of West Virginia, where currently natural gas is produced from 35,000 individual wells. In California, Solana and its partners hold the right to earn 100% of the working interest (Solana 25%) in a 40-acre tract in Kern County, on the Cal Canal Anticline, offsetting Berkley Petroleum's Cal Canal #1 deep gas test. The Cal Canal #1 well is currently reported to be drilling at 17,000+ feet just above the objective Miocene Temblor Formation. In Colombia, Solana and its partners are preparing to spud the Mateguafa #2 appraisal well next month on the Tapir Association Contract in the Llanos Basin of the Eastern part of the country. The first exploratory well on the Tapir Block, Mateguafa #1, which Solana holds a 38.125% interest, tested 777 barrels per day of 32 degree API gravity oil earlier this year. The company recently announced the pending acquisition of up to an additional 11.875% of the Tapir Contract from Seven Seas Petroleum Colombia, Inc., which when completed, will give Solana a 50% working interest in the Contract. Solana also holds rights to earn a 50% interest in the 126,000-acre Ca¤o Caranal Association Contract, also in the Llanos Basin of Colombia, where a number of large structures are being evaluated for possible drilling. This release may contain forward looking statements including expectations of future oil and gas production implying an assessment that the resources described can be produced profitably in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. Solana Petroleum Corp. trades on The Alberta Stock Exchange under the symbol "SOP". For more information please contact: Noble House Investments Inc. Dan M. Patience, Phone: 403-262-7111 or Toll Free: 800-499-2388 E-mail: noblehouse@home.com Solana Petroleum Corp. James B. Taylor, Chairman, Phone 505-983-7591 or Wayne Stromme, Vice President, Canadian Operations, Phone: 403-261-9019 Toll Free: 877-261-9019 Website: www.solanapetroleum.com The Alberta Stock Exchange has neither approved nor disapproved of information contained herein.