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Adulis Resources Inc (ADS)


Tuesday 03 May, 2005

Adulis Resources Inc

Drilling Report

Adulis Resources Inc.
03 May 2005

                             ADULIS RESOURCES INC.

MAY 3, 2005
                                                 CALGARY, ALBERTA

                                  NEWS RELEASE

Adulis Resources Inc. ('Adulis') announces an update to its eleven well drilling
programme in Colombia.


The Molino de Viento well, the fourth well in the eleven well program and the
second well on the Salinas Block has been drilled and evaluated. The well was
spudded on April 8, 2005 and reached a total measured depth of 8950 ft. on April
28, 2005.   The well encountered significantly more high quality sand reservoirs
than was indicated by the geological model used in this area and as a result no
adequate seals to trap hydrocarbons were penetrated.  The sands were
consequently found to be water wet and the well is in the process of being
abandoned.  The drilling operations proceeded efficiently and well below initial
cost forecasts with the total cost of the well estimated to be approximately $US
2.3 million compared with Adulis' initial estimate of $US 2.94 million, dry hole


Following exploration success earlier in the year on the Guayuyaco Block in the
Putumayo, long term testing of the Caballos and T sands has resulted in each
zone producing at initial rates of approximately 1000 bopd. Approval has been
received to continue the long term test. During this period, field development
plans will be defined, including the completion programme for the well. Adulis'
management anticipates that a rig will be available to initiate the drilling of
Guayuyaco 2 before the end of May.

Stephen Newton, President, Adulis Resources Inc., commented:

'While the drilling of the second well on the Salinas Block has been
disappointing - we have made good progress on the Guayuyaco Block with tests
confirming a potential of 1,000 bopd from each of two of the three zones

'The  seven additional wells due to be drilled in Colombia over the next 12
months are all targeting oil prospects and with revenues already being accrued
from Guayuyaco, we believe the company is currently well positioned  to build a
sustainable business in Colombia .'

Adulis operates in Colombia through Solana Petroleum Exploration Colombia
Limited, Adulis' wholly owned subsidiary.  The Salinas Block is held under an
Association Contract with Ecopetrol, the Colombian state oil company.

The Guayuyaco 1 well, in the Putumayo basin of southern Colombia, is operated by
Argosy Energy International in which Solana has a commercial agreement with
Argosy to earn a 50% interest in the Guayuyaco Association Contract, subject to
Ecopetrol approval which has a 30% back-in right.  In order to earn the 50%
interest, Solana must participate in the drilling of two exploration wells of
which Guayuyaco 1 is the initial well.


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

Pelham Public Relations    James Henderson     [email protected]            +4402077436673
                           Charles Vivian      [email protected]             +4402077436672

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accuracy of this release

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

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