Solara Exploration Ltd.

Solara Exploration Ltd.

February 16, 2011 09:15 ET

Solara Exploration Places Cardium and Dina Horizontal Wells on Production

CALGARY, ALBERTA--(Marketwire - Feb. 16, 2011) - Solara Exploration Ltd. (TSX VENTURE:SAA.A) ("Solara" or the "Company") is pleased to report that two (2) recently drilled and completed Cardium horizontal wells were placed on production in the last week at its Pembina (Buck Lake) Project in northwestern Alberta. One of the wells, which is located in 15-9-45-5 W5M, averaged approximately 560 BOE/d comprised of 478 bbls/d of oil and 497 Mcf/d of gas over the past six days on a reduced choke at an average flowing wellhead pressure of 3,600 kpa (gauge). The Company currently controls a 40% working interest in the well. The second well situated at 1-17-45-5 W5M came on production on February 14 and is currently producing at an initial rate of approximately 1,200 BOE/d comprised of 1,100 bbls/d of oil and 670 Mcf/d of natural gas at a wellhead flowing pressure of 2,756 kpa (gauge). Solara controls a 26.67% working interest in the well. Solara is currently installing boost compression to increase the productive capability of its wells located in section 9-45-5 W5M which are currently producing into a high pressure gas gathering system. The initial production rates of the two wells may not be indicative of their productive capability over the longer term. The Company has up to five additional horizontal drilling locations on its working interest lands at Pembina (Buck Lake), Alberta based on management's internal assessment.

Solara also advises that it recently commenced production of two horizontal wells in the Dina oil zone on its Dewberry project in eastern Alberta. The two wells are currently producing oil at a combined estimated daily rate of 100 bbls/d. Both wells have been initially completed in a 50 meter portion of the 300 meter horizontal section as part of a production risk management strategy. The Company owns a 100% working interest in the lands on which the wells were drilled and has up to eight additional horizontal drilling locations for the Dina formation on its lands.

As a result of its recent drilling and production operations on its Pembina (Buck Lake) and Dewberry oil and gas projects, the Company estimates that its current daily production is approximately 1,400 BOE/d. Solara's overall production is heavily weighted toward oil which represents approximately 85% of its total production mix at the present time.

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.

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