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

Solara Exploration Ltd.

November 26, 2009 13:33 ET

Solara Exploration Increases Oil Production on Recent Drilling Results

CALGARY, ALBERTA--(Marketwire - Nov. 26, 2009) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B)("Solara" or the "Company") is pleased to announce that it has increased gross daily production by 120 bbls/d (net 50 bbls/d) at the Company's Marwayne project in eastern Alberta as a result of its recent drilling and workover program. Of the three new wells drilled, two are currently producing at a combined rate of approximately 85 bbls/d. The Company also conducted the workover of an existing well which is contributing another 35 bbls/d to the total reported above. A third well is currently being placed on production and is expected to increase the overall oil production for the project. Based on the success of this drilling program, Solara has plans to drill another four wells on the project lands with its partner, Marwayne Production Limited Partnership, in the first quarter of 2010. The Company operates and owns interests in 1,280 acres or 512 hectares of concentrated lands in the Marwayne area. Management believes that the undrilled lands are prospective for oil based on their internal assessment of geophysical data and recent drilling results. Based on a full optimized drilling program, up to 28 additional wells could potentially be drilled on the project subject to regulatory approval. Initial average production rates for three of the four wells drilled to date have been approximately 35 to 45 bbls/d of oil per well. Any future development drilling program will be subject to the availability of funds and discretionary cash flow.

Solara has also recently operated the drilling and completion of a new pool oil well in the Provost area of eastern Alberta. The well is in the preliminary stages of testing and is expected to be on production within the next week. More information on this well will be disseminated once a stable rate of production is established. The Company has a 30% working interest in the well and has an option to drill up to two additional wells on the project lands with its partners.

About Solara Exploration

Solara Exploration 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.

The terms bbls, bbls/d, boe, boes or boes/d may be misleading, particularly if used in isolation. A boe (barrel of oil equivalent) conversion ratio of 6 mcf per one (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.

34,710,937 Class A Shares

986,700 Class B Shares

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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)
    don_solaraexploration@shaw.ca
    or
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8