Solara Exploration Ltd.

Solara Exploration Ltd.

August 31, 2007 13:19 ET

Solara Announces Second Quarter 2007 Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - Aug. 31, 2007) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) ("Solara" or the "Company") is pleased to announce its unaudited financial and operating results for the three (3) month period ended June 30, 2007.


- Generated gross oil and gas revenue of $1.33 million and cash flow of $557,444 during the three month period

- Daily production averaged 311 BOE/d in the quarter

- Continued focus on the completion and tie-in of wells drilled in late 2006

- Exited the quarter at approximately 425 BOE/d of field production

- Operating line was increased by the Company's banker to $7.5 MM

Solara's financial and operating results continued to increase over the prior periods due to slightly higher sales production and relatively strong oil prices. Total capital expenditures for the second quarter were $2.11 million comprised mainly of completion and tie-in activities, seismic and land acquisitions. Solara's daily field production continued to increase toward the end of June and into July as a result of the completion of various tie-in activities initially adding approximately 135 BOEd. These production additions will have a positive impact on the third quarter 2007 financial and operating performance. Solara has a 35% interest in a gas well in the Pembina area which has been tied-in and is awaiting a gas plant turnaround and repairs prior to going on production in September. The well is initially expected to add approximately 40 BOE/d net to the Company's daily production. Three additional gas wells are planned for tie-in in the fourth quarter. Solara has plans to drill several wells on core projects prior to year end.

During the three month period, the Company had oil and gas production revenue of $1,337,781, cash flow of $557,444 and a loss, after income taxes, of $238,864. At June 30, 2007, Solara reported a working capital deficiency of $2,765,347. The Company's banker increased its demand operating line from $3.25 MM to $7.5 MM in May. Solara has filed its unaudited financial statements and management discussion and analysis for the three month period ended June 30, 2007 with the Canadian securities regulatory authorities on SEDAR. This information may be accessed electronically at

About Solara Exploration Ltd.

Solara Exploration Ltd. is an emerging 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 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.

24,678,692 Class A Shares

1,044,000 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
    Solara Exploration Ltd.
    1800, 444 - 5th Avenue S.W.
    Calgary, Alberta, Canada T2P 2T8
    (403) 537-0462 (FAX)