Solara Exploration Ltd.

Solara Exploration Ltd.

November 24, 2010 12:56 ET

Solara Exploration Places Cardium Oil and Gas Well on Production and Commences New Cardium Drilling Operation

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2010) - Solara Exploration Ltd. ("Solara" or the "Company") (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) is pleased to report that it placed its operated Cardium horizontal oil and gas well on production on Wednesday, November 17, 2010. The well, which is located in section 9-45-5 W5M of the Pembina (Buck Lake) area of Alberta, averaged approximately 1,200 BOE/d comprised of 970 bbls/d of oil and 1.4 MMcf/d over the past six days on a reduced choke at an average flowing wellhead pressure of 362 psi (gauge). The Company currently has an 81% working interest in the well. The extreme cold weather and limited onsite storage tankage has hampered field operations for the well. Solara is currently drilling the first of two additional horizontal wells in section 17-45-5 W5M at Buck Lake within one-half of a mile of its current producing Cardium well. Solara anticipates that the current drilling operation will be completed within the next several days after which time it will immediately commence the drilling of the second horizontal well on its interest lands in section 9-45-5 W5M.

Solara also advises that it anticipates commencing the drilling of the first of two horizontal wells within the next two weeks to evaluate and optimize the Dina oil zone on its Dewberry project in eastern Alberta. The Company owns a 100% working interest in the lands on which the wells are being drilled. Solara currently has 12 oil wells on production in Dewberry.

As a result of its recent drilling operations on its Pembina (Buck Lake) and Dewberry oil projects, the Company estimates that its current daily production is approximately 1,300 BOE/d. Solara's overall production is heavily weighted toward oil which represents approximately 80% of its 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.

This news release may contain certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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.

62,321,179 Class A Shares

986,700 Class B 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