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

Solara Exploration Ltd.

January 29, 2010 14:06 ET

Solara Exploration Updates Operating Activities

CALGARY, ALBERTA--(Marketwire - Jan. 29, 2010) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B)("Solara" or the "Company") is pleased to update its recent operating activities in the Provost and the Dewberry areas of Alberta. The Company operated the drilling and completion of an oil well in the Provost area in November, 2009 which has been producing 30 bbls/d since early December, 2009. Solara owns a 30% working interest in the well. The Company has plans to drill up to two more wells on the project prior to year end. In addition, Solara has completed a dual oil and gas well at the Dewberry Project which tested at an average rate in excess of 540 Mcf/d or 90 BOE/d of gas per day over a five day period. The well is currently being equipped and tied in for oil and gas production and is expected to be on production by late February, 2010. Until the well has been tied-in for gas production, a definitive rate for stabilized oil production cannot be established. Management estimates that the Company's net share of production from the well will be approximately 38 BOE/d. Solara has plans to drill five more wells on the Dewberry Project within the next two to three months. Four wells will be entirely funded by its partner, the Marwayne Production Limited Partnership, pursuant to a farmout arrangement. Subject to the approval of a Primary Recovery Application by the ERCB, the Company has potentially up to 23 additional oil drilling locations on its Dewberry Project based on management's internal assessment of its drilling and geophysical results obtained to date. Three wells which were drilled between August and October, 2009 on the project are each currently producing 35 to 40 bbls/d of sales production. Solara owns an average 70% working interest in the project lands comprising 1,280 gross acres.

The Company also advises that the Company's Board of Directors approved the granting of 600,000 stock options to officers, directors, employees and consultants of the Company, subject to regulatory and TSX Venture Exchange approval. The options were issued with an exercise price of $0.12 per share and have a five year term with standard vesting provisions.

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

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

41,110,937 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