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Adulis Resources Inc (ADS)

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Monday 03 October, 2005

Adulis Resources Inc

Colombian Operations Update

Adulis Resources Inc.
03 October 2005

                             ADULIS RESOURCES INC.
                        ('Adulis' or the 'the Company')

                          Colombian Operations Update

September 30, 2005

                                                                Calgary, Alberta


Adulis Resources Inc. (TSX-V: ADE; AIM: ADS), the Colombian focused independent
oil and gas exploration and production company, today announces an update on
operations. Adulis operates in Colombia through Solana Petroleum Exploration
Colombia Limited ('Solana'), Adulis' wholly owned subsidiary.

EXPLORATION UPDATE

•       Puma Well

The Puma well, which was the subject of a recent press release, was successfully
sidetracked and re-drilled to a depth of 11,940 feet.  The top of the objective
Caballos was encountered at 11,910 feet, and the well is currently being logged.
Once logging is completed, casing will be set at the current total depth to
isolate the Villetta section. Drilling will then be resumed through the target
Caballos sands. It is currently anticipated that the well will have penetrated
the objective sand and the logging of that unit will be complete in the next few
weeks. Subsequently, a decision will be made as to whether the running of
completion casing and drill stem testing is warranted.

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%.

•       Balu Well - Abandoned

The Balu well, located in the Middle Magdalena basin, was drilled to a final
total depth of 1775 feet in intrusive basement rocks, and logged. After the
completion of log analysis it was confirmed that only traces of hydrocarbons
existed in the two primary objectives. Therefore the well has been abandoned.
The well was drilled on time and on budget with a total cost of approximately
$US 750,000 all of which was borne by Adulis.

•       Guariquies Well - Spudded

The Guariquies well was spudded on September 28, 2005 and is currently drilling
in the uphole section.  This well is targeted at reservoirs at approximately
10,000 feet and is expected to take approximately 60 days to drill. The total
dry hole cost of the well to Adulis will be approximately $US 4,600,000.

The Guariquies well is the third well to be drilled under the terms of a Shared
Risk Contract between Ecopetrol and 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 45% working interest in the Guariquies project, the net Solana share of
any production ultimately obtained from this block will be 33.75%.

PRODUCTION UPDATE

•       Bucaro 1 Well - Initial Production Results

The Bucaro 1 well, was flowed under natural flow conditions at the request of
the Colombian Ministry of Energy during the period September 23 to 26, 2005. The
well produced a total of 480 barrels of 27 degree API oil over 3 days with an
increasing water cut and ceased to flow at the end of the test period.  This
well will now be completed with a jet pump and put on commercial production with
produced liquids treated on site and the oil trucked 140 kilometers to the sales
point. After sufficient oil is produced to clean up the formation a decision
will be made as to whether to initiate a cement squeeze to isolate water bearing
zones from those which are oil producing and whether to additionally perforate
other zones in this well which appear to be oil bearing on wireline logs.

•       Guayuyaco Field - Production Update

The Guayuyaco 2 well was recompleted to test the Lower U Sand in compliance with
a directive by the Colombian Ministry of Energy to obtain information on all oil
bearing zones. This well had previously produced up to 1130 Bopd of 28 degree
API oil at low (7%) water cut from the T Sand. The Lower U Sand is currently
producing at approximately 720 Bopd of 27.5 degree API oil at a low and
decreasing water cut (currently 6%). Adulis receives a net 32.2 % of Guayuyaco
production after the deduction of operator and state oil company share and
royalty.

Enquiries:

Adulis Resources
Stephen Newton            [email protected]     +0057 1 629 1636
Ray Antony                [email protected]          +00 403 266 7512

Pelham Public Relations
Charles Vivian            [email protected]           +442077436672
Alisdair Haythornthwaite  [email protected] +442077436676

This release may contain forward looking statements within the meaning of the '
safe harbor' provisions of US laws.  These statements are based on management's
current expectations and beliefs and are subject to a number of risks and
uncertainties that could cause actual results to differ materially from those
described in the forward looking statements.  Adulis does not assume any
obligation to update any forward looking information contained in this news
release.

The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                                                                                                                            

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