Solara Exploration Ltd.
TSX VENTURE : SAA.A
TSX VENTURE : SAA.B

Solara Exploration Ltd.

December 01, 2008 12:25 ET

Solara Announces Third Quarter Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2008) - Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) is pleased to announce its unaudited interim financial and operating results for the nine months ended September 30, 2008.

Highlights

- Generated gross oil and gas revenues of $5,964,630, funds from operations of $3,020,218 ($0.12 per basic Class A Share) and net income of $55,399

- Averaged oil and gas sales production of 310 BOE/d

- Completed a purchase and sale transaction to acquire 45 BOE/d

- Participated in the drilling of three wells resulting in two gas wells and one dry and abandoned well

Solara achieved continued growth in key aspects of its financial and operating results for the first nine months of 2008. These results were primarily due to higher sales production, the acquisition of producing properties and stronger oil and natural gas selling prices during the period compared to the prior period in 2007. Capital expenditures for the nine month period were $4.04 million comprised mainly of land, acquisitions, drilling, completion and tie-in activities. Solara's daily sales production averaged 310 BOE/d for the nine month period. The Company has equipping and tie-in activities under way in the fourth quarter for two oil wells recently drilled, and a recompleted gas well. Management expects that these production additions will have a positive impact on financial and operating performance during the last three months of 2008, and into 2009.

On September 16, 2008, Solara completed a purchase and sale transaction to acquire certain producing and non-producing oil and gas assets, and undeveloped lands situated in Alberta for $1.35 million. The net share of daily oil and gas production from the properties is approximately 45 BOE/d. In addition, Solara acquired interests in net 2,205 acres (net 892 hectares) of undeveloped land.

For the nine month period ended September 30, 2008, the Company had oil and gas production revenues of $5,964,630, funds from operations of $3,020,218 ($0.12 per basic Class A Share, excluding Class B Shares) and net income of $55,399. Solara has filed its unaudited interim financial statements and Management's Discussion and Analysis for the nine month period ended September 30, 2008 with the Canadian securities regulatory authorities on SEDAR. This information may be accessed electronically at www.sedar.com.

About Solara Exploration

Solara Exploration Ltd. is a publicly traded junior oil and gas company focused on the exploration, development and acquisition of oil and natural gas in western Canada.

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

24,818,937 Class A Shares

1,022,000 Class B Shares

The TSXV has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Solara Exploration Ltd.
    Donald R. Holding
    President and Chief Executive Officer
    (403) 537-0458
    (403) 537-0462 (FAX)
    Email: don_solaraexploration@shaw.ca
    or
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8