Solara Exploration Ltd.

Solara Exploration Ltd.

January 20, 2006 10:30 ET

Solara Exploration Announces Recent Drilling Results and Exploration Plans for 2006

CALGARY, ALBERTA--(CCNMatthews - Jan. 20, 2006) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) ("Solara" or the "Company") is pleased to announce that it has participated in the drilling and casing of five wells since October, 2005 in three project areas located in Alberta. Four of the wells have been completed for commercial production while the fifth well is awaiting completion later this month.

At Sounding Lake in east central Alberta, Solara participated for a 20% interest in the drilling and completion of two oil wells and one gas well. The wells are currently being equipped for production by the operator. One of the wells in which the Company has a 30% interest is located in the Birch Wavy area of east central Alberta, has been completed as a gas well and is currently being tied in for production. The Company also has a 6% interest in a potential gas well recently drilled at Boundary Lake in northwestern Alberta. The operator will complete the well for production prior to the end of January, 2006. Once all of the wells have been on production for a sufficient time to establish reliable rates of production, Solara will report on these rates and estimated reserves.

The Company has also entered into two joint venture farmin agreements to participate in 14 wells to be drilled on various natural gas prospects situated in the Peace River Arch area of northwestern Alberta within the next four to six months. Its interest participation will vary from 5% to 30% in the joint venture wells. Solara has also agreed to participate in several geophysical programs in the same project area to evaluate potential drilling locations for this year.

Solara plans to actively participate in additional drilling programs for the remainder of 2006 utilizing the $12,000,000 in proceeds from its recently completed initial public offering. It will also evaluate and undertake prospective producing asset acquisitions to accelerate growth of the Company in the short term.

Solara Exploration is an emerging junior oil and gas company focused on exploration, development and exploitation of oil and natural gas in western Canada.

14,766,612 Class A Shares

1,044,000 Class B Shares

ADVISORY: Certain information regarding Solara Exploration Ltd. including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external source. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

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) 398-8191
    (403) 668-7883 (FAX)
    Solara Exploration Ltd.
    1810, 444 - 5th Avenue S.W.
    Calgary, Alberta T2P 2T8