Solara Exploration Ltd.

Solara Exploration Ltd.

January 05, 2011 09:30 ET

Solara Exploration Announces Third Cardium Horizontal Drilling Success

CALGARY, ALBERTA--(Marketwire - Jan. 5, 2011) - Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) announces that it has recently completed the drilling and casing of its third operated Cardium horizontal well located in section 9-45-5 W5M of the Pembina (Buck Lake) are of Alberta. The Company will undertake the completion and stimulation (fracing) of the well over the next several days and anticipates that the well will be on production prior to the end of January. This new well has been drilled within one-half of a mile of its initial producing Cardium oil and gas well. The Company controls a 40% working interest in the well. In addition, Solara has undertaken the stimulation of its second operated Cardium horizontal well in section 17-45-5 W5M, and is currently undertaking testing operations on the well. Based on the frac and load oil recovery rates achieved to date, management's internal assessment of the well is that it is performing in a comparable manner as its first producing Cardium horizontal oil well that it drilled and completed in late 2010. Solara operated the drilling of the second well on the basis of paying 30% of the drilling, casing and completion costs to earn a 20.67% in section 17.

The Company also announces, as previously reported, that the 986,700 Class B Shares of the Company were converted into 9,867,000 Class A Shares effective December 22, 2010. As a result of the conversion, Solara now has 75,474,494 Class A Shares issued and outstanding.

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.


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.

75,474,494 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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