Solara Exploration Ltd.

Solara Exploration Ltd.

May 08, 2009 08:30 ET

Solara Announces Gas Marketing Contracts and Recommencement of Issuer Bid

CALGARY, ALBERTA--(Marketwire - May 8, 2009) - Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) announces that it has entered into two commodity pricing contracts for natural gas effective April 1, 2009 with its major lender. The first contract provides for a price of $5.21 per gigajoule ("GJ") on 350 GJs per day for the period from April 1, 2009 to December 31, 2009, with a ceiling price of $7.50 per GJ, commencing on January 1, 2010 and ending on March 31, 2011. The second contract provides for a price of $5.00 per GJ on 200 GJs per day for the period from April 1, 2009 to December 31, 2009, with a ceiling price of $6.675 per GJ, commencing on January 1, 2010 and ending on March 31, 2011. The management of Solara believes that these two contracts will provide pricing support for a portion of its natural gas production for 2009 in light of the current weakness in selling prices for natural gas.

The Company also advises that it has obtained approval from the TSX Venture Exchange ("TSXV") to the recommencement of its Normal Course Issuer Bid program ("NCIB"). The previous program, which ended on April 15, 2009, was renewed and shall run for one year from May 6, 2009 to May 5, 2010 and will be managed by Jennings Capital Inc. Under the NCIB, the Company may purchase up to 1,225,547 Class A Shares and 49,335 Class B Shares of the Company through the facilities of the TSXV. Any shares purchased will be returned to treasury and cancelled. Under the NCIB, a maximum of 2% of the outstanding Class A Shares and Class B Shares may be purchased in any 30 day period.

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.


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.

24,510,937 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)
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8