Overview

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.

DEWBERRY, EASTERN ALBERTA

Solara operates a producing oil and gas project located in Eastern Alberta currently producing approximately 25 BOE/D and comprising of 320 net hectares or 800 net acres. The Company has entered into a farmout and option agreement with a limited partnership to drill several additional wells on the projet over the next year targeting the Sparky formation for oil production. Solara has acquired additional undeveloped lands adjacent to the project for future development.

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.

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.