Solara Exploration Ltd.
TSX VENTURE : SAA.A

Solara Exploration Ltd.

February 02, 2011 09:15 ET

Solara Exploration Announces $ 8 Million Capital Expenditure Program for 2011

CALGARY, ALBERTA--(Marketwire - Feb. 2, 2011) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) ("Solara" or the "Company") is pleased to announce that its capital expenditure program for 2011 will involve net expenditures of up to $8 million on a total of eight (8) horizontal and 12 vertical gross (net 11) wells situated on four of its operated oil projects in Alberta. The major focus of the capital expenditure program is on oil development projects where the Company has previously drilled commercial oil wells over the past eighteen months.

At Pembina-Buck Lake, the Company plans to operate and participate in the drilling of up to four (4) horizontal gross (net two) wells over the next several months to evaluate the Cardium oil potential of its undrilled lands adjacent to its recent drilling successes. Solara also plans to drill up to four (4) horizontal gross (net 3.4) wells on the Dewberry Oil Project located in northeastern Alberta, primarily to optimize the Dina formation from which it is currently producing oil in three (3) wells. One (1) horizontal well will be drilled to further evaluate the Sparky oil zone in Dewberry. Eight (8) vertical gross (5 net) wells are planned over the next three quarters at Dewberry to further optimize the Sparky, Rex and Cummings oil zones where the Company currently has 14 producing wells. Solara also plans to drill two (2) vertical gross (1.1 net) wells on its operated Sounding Lake property to evaluate the Dina oil formation. In addition, the Company will operate the drilling of a McLaren oil test on lands at Rivercourse located southwest of Lloydminster, Alberta.

The capital expenditure program will be funded by discretionary cash flow from operations. Through responsible fiscal financial management the company has at its disposal additional financing sources, if it so chooses, of maturing warrant programs, available bank operating lines and the disposition of non-core properties.

Solara also advises that the Company's Board of Directors approved the granting of 1,000,000 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 $0.70 per share and have a five year term with the 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.

75,620,164 Class A 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.

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