Solara Exploration updated its recent and planned drilling activities in the Dewberry and North Sounding Lake areas of eastern Alberta. The Company operated the drilling and completion of an oil well in the Dewberry area in March, 2010 which has been producing approximately 60 bbls/d at the wellhead over the last several days. Solara owns a 100% working interest in the well. In addition, Solara has tied-in for production a dual oil and gas well at the Dewberry Project which has been producing gas at an average stabilized rate of 100 Mcf/d over the past month. The well, which initially produced gas at significantly higher volumes, has also been equipped to produce oil and subject to implementation of certain mechanical repairs, is expected to be on production for oil within the next thirty days. In the past several months, the Company has drilled and completed four oil wells on the Dewberry project and one oil well at North Sounding Lake.
Solara has plans to drill six more wells on the Dewberry Project prior to June 30, 2010, subject to surface access and regulatory approval. Four of the wells will be funded by its partner, the Marwayne Production Limited Partnership, pursuant to a farmout and option arrangement. The two remaining wells are being drilled by the Company on its 100% working interest lands. The Company is planning to operate the drilling of a well on its North Sounding Lake oil project within the next three weeks subject to surface access. Solara will have an 85% working interest in this well which is being drilled based on the successful results of an oil well that it drilled in October, 2009 on the same project.
As previously announced on April 14, 2010, the Company will utilize the proceeds from various financings totaling $2,000,000 and discretionary cash flow to fund the seven well drilling program. Solara's oil and gas production is currently averaging 400 BOE/D based on its recent drilling and operating activities.
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