Solara Exploration Ltd.

Solara Exploration Ltd.

January 07, 2011 09:25 ET

Solara Exploration Announces Dina Horizontal Drilling Success and Update on Corporate Activities

CALGARY, ALBERTA--(Marketwire - Jan. 7, 2011) - Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) announces that it has recently drilled, cased and completed two horizontal wells in the Dina formation on its 100% working interest lands in section 21-53-4 W4M at Dewberry in eastern Alberta. The Company placed one of the wells on production for a test period while it cleans up and recovers load fluid and formation sand. Production equipment is currently being installed on the second well which is expected to be on production within the next few days. Solara will report on the initial stabilized daily oil production rates for the two wells within seven to ten days.

The Company also reports that prior to year end 2010, it issued 3,062,300 Class A Shares pursuant to the exercise of various broker and shareholder purchase warrants raising $579,680 in new capital. In addition, officers and directors of Solara exercised 1,111,661 stock options at $0.35 per Class A Share for total proceeds of $389,081. The Company also advises that in December, 2010, it returned to treasury and cancelled 874,500 Class A Shares which it had purchased pursuant to its normal course issuer bid over the past several months.

The Company also announces that effective December 31, 2010, its major lender increased its operating lines from $9.25 million up to $13.5 million based on recent production and reserve additions.

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.

75,474,494 Class A Shares

READER ADVISORY 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