Solara owns various working interests in two and one-half sections (1,600 acres or 640 hectares) of lands located approximately 50 kilometers west of Lloydminster, Alberta. Since August, 2009, the Company has operated the drilling of 12 vertical wells, and two horizontal wells to evaluate the Sparky, Dina, Rex and Cummings oil zones underlying the lands. Solara owns a 42% interest in one section, and a 100% interest to the remaining lands. In May, 2010, the Energy Resources Conservation Board of Alberta (ERCB) approved a primary depletion plan which provided for the reduction in the size of the minimum well and production spacing from 160 acres down to 20 acres with respect to one of the sections of land. In January, 2011, the ERCB approved an amendment to the original primary depletion plan to include the remaining lands for reduction of spacing requirements. Effectively this regulatory approval enables Solara to drill up to 32 wells per section per formation. Note that the Company currently has oil wells producing from the Sparky, Dina, Rex and Cummings zones. In summary, Solara estimates that it has in excess of 70 potential drilling locations on its operated lands at Dewberry. In 2011, the Company has plans to drill up to eight vertical (conventional) wells and four horizontal wells to further optimize the oil field.