Solara Exploration Ltd.

Solara Exploration Ltd.

March 28, 2007 14:12 ET

Solara Updates Recent Production and Operating Results

CALGARY, ALBERTA--(CCNMatthews - March 28, 2007) -


Solara Exploration Ltd. (TSX VENTURE:SAA.A) (TSX VENTURE:SAA.B) ("Solara" or the "Company") is pleased to announce that it's daily field production was approximately 400 BOE/d prior to spring breakup. Production additions in the first quarter resulted from new wells coming on stream in the Sounding Lake, Deer, Lloydminster and Tomahawk areas of Alberta. In addition to the foregoing, Solara has interests in various wells in west central and southeastern Alberta which are in the process of being tied-in for production over the next two to three months. Based on test results previously announced in January, these wells are forecasted to increase net daily field production by up to 325 BOE/d depending on gathering and gas plant capacity. Upon completion of these activities, Solara expects its total average daily field production will be approximately 700 BOE/d or more based on management's forecasts. The Company has operated interests in three additional gas wells drilled over year end which were cased and are being evaluated prior to tie-in for production. Any wells bought on production may be subject to declines in production rates and down time due to circumstances beyond the reasonable control of the Company.

Of particular note is the Company's recent participation in a new oil pool discovery in the Wildwood area of west central Alberta which tested at initial gross rates of 200 BOE/d of oil and gas. The oil test rates represented 90% of total production from the well. Solara has a 35% working interest in the well and in 512 gross acres recently acquired offsetting the discovery well. The operator is currently tieing the discovery well in for production. Additional drilling on the project is being evaluated for the third quarter of 2007.

Since January 1, 2007, the Company has focused primarily on completions and tie-ins of wells drilled in the latter part of 2006. Solara continues to evaluate opportunities for growth including asset and corporate acquisitions which would be accretive to its share value. The completion of a recent financing raising aggregate funds in the amount of $4.09 million and available bank operating lines enables the Company to capitalize on the current oil and gas market conditions. Solara currently has no bank debt.

Solara Exploration Ltd. is an emerging junior oil and gas company focused on the exploration, development and acquisition of oil and natural gas assets 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.

24,880,181 Class A Shares

1,044,000 Class B Shares

The TSXV has neither approved nor disapproved the contents of this news release. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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