Solara owns various working interests in two sections (1,280 acres or 512 hectares) of land situated in the Pembina Buck Lake area of northwestern Alberta. Since August, 2010, the Company has operated the drilling of three horizontal wells to evaluate the oil potential of the Cardium formation. The first horizontal well, which was tied-in for production in late November, 2010, initially produced approximately 1,700 BOE/d comprised mostly of oil. The second well was drilled in December, 2010 and tested  initial rates in excess of 1,800 BOE/d. This well is currently being tied-in and is expected to be on production by February 15, 2011. The third horizontal well was drilled in late December, 2010 and tested initial rates of 1,604 BOE/d. This well is expected to be on production by February 10, 2011. Solara controls a 100% working interest in the first well, 26.67% working interest in the second well, and 40% in the third well. It is important to note that these initial test rates are not indicative of long-term productivity for each well. The Company’s internal assessment of its undrilled acreage on this play indicates that there are up to five additional drilling locations for the Cardium oil play. Solara has plans, in conjunction with its partners, to drill four of these drilling locations in 2011.

The Company also owns a 35% working interest in two sections of land situated approximately five kilometers to the northeast of its Buck Lake Project. These lands are prospective for the Cardium oil play and there has been several horizontal wells drilled in close proximity to these lands.