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

Solara Exploration Ltd.

July 06, 2010 13:43 ET

Solara Announces Recent Drilling Results

CALGARY, ALBERTA--(Marketwire - July 6, 2010) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO US PERSONS.

Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) announces that it has drilled and completed four new wells on its Dewberry Project in eastern Alberta. Three of the wells have been drilled on lands in which Solara owns a 100% working interest. One of the 100% wells is currently on production at an initial rate of approximately 35 to 40 bbls/d of oil from the Sparky formation. Another well is expected to be on production from the Sparky formation within the next week, while the third well will be on production from the Dina formation in the next few days. The remaining operated well in which the Company owns a 42% interest is currently producing oil from the Dina formation at a rate of 25 bbls/d with additional productive capability. The two wells completed in the Dina formation represent a new oil pool discovery for the Company on the Dewberry Project. Both of these wells are also prospective for oil production from the Sparky formation based on management's assessment of the information obtained from the test results for the wells.

Solara has licensed four additional wells at Dewberry which it plans to drill within the next two weeks for the purpose of evaluating the oil potential for both the Sparky and Dina formations. To date, the Company has drilled and completed eight consecutive oil wells for production on the Dewberry Project lands. A Primary Depletion Application, which was approved by the ERCB in May, will allow the Company to drill potentially up to an additional 24 wells on 20 acre test well spacing on one section at Dewberry. The Company has plans to amend the application to include additional lands for the purpose of increasing the potential number of wells that could be drilled on the project.

The Company also announces that it completed the sale of its interests in non-producing lands located in western Alberta for $300,000. In addition, Solara has entered into purchase and sale arrangements to sell non-core assets for $530,000, which are expected to be completed later this month.

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.

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.

50,117,937 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