Overview

DEWBERRY, EASTERN ALBERTA

Solara operates five producing oil and gas wells currently producing approximately 150 BOE/D of which 100 BOE/D is net to the Company. The project comprises 1,280 gross acres (909 net acres) of land. The Company has up to 27 additional drilling locations based on 40 acre spacing. Solara has plans to drill up to six additional wells on the undeveloped lands by June 30, 2010 subject to regulatory approval and surface access. The main zone for production and further development is the Sparky formation, with secondary potential in the Dina formation.

SOUNDING LAKE, ALBERTA

The Company has a high operated interest in five sections of land in the Sounding Lake area of eastern Alberta. Solara operates a number of producing oil wells on the lands with several additional drilling locations based on three dimensional (3D) seismic and geological evaluations. The oil is produced from the Dina, Cummings and Sparky zones. In late 2008, Solara drilled two wells which were completed for production as oil wells. The Sounding Lake project represents a core asset both in terms of production and reserves for the Company.

In late 2009, Solara operated the drilling and completion of an oil well on lands one mile to the northeast of its Sounding Lake project. The well is producing from the Dina formation at a stabilized rate of 30 bbls/d. The Company has a 30% working interest in the well and lands. In early 2010, Solara negotiated a farmin on offsetting acreage to the initial well for the purpose of drilling another seismic anomaly and evaluate the Cummings and Dina formations. The Company will have an 85% interest in the new well which is expected to be drilled in late April, 2010.

CRAIGEND, ALBERTA

Solara acquired interests in various producing and non-producing natural gas properties located in the Craigend area of northeastern Alberta in January, 2008. At the time of the acquisition, the properties were producing approximately 440 Mcf/d or 70 BOE/d of gas production net to the interests acquired by the Company. In addition, the Company acquired interests in 16,640 net acres of undeveloped lands (6,656 net hectares) in close proximity to the producing wells and infrastructure. The undeveloped lands offer multi-zone drilling opportunities for future development. The Craigend area is a core area for Solara in terms of drilling and optimization activities in the future.

MAJORVILLE, ALBERTA

The Company operates four producing gas wells and has various interests in several other producing gas wells in the Majorville area of southeastern Alberta.  The wells produce gas from the Belly River zone.  There are additional recompletions and drilling locations which the Company has plans to pursue in the future on undeveloped lands.