Solara has received the approval by the Energy Resources Conservation Board of Alberta (the "ERCB") with respect to its application for a Primary Recovery Scheme for a Sparky oil sands development (the "Primary Recovery Scheme") underlying Section 16, Township 54, Range 4 W4M located in northeastern Alberta. The Primary Recovery Scheme allows Solara to drill one well on 20 acres (8 hectares) versus the previous well spacing requirements of one well per 160 acres (64 hectares) for the purpose of developing the Sparky oil sands. The Company will commence the drilling of four wells on the project lands within the next two weeks subject to surface access. As well, Solara has plans to drill three wells on its 100% interest lands directly adjacent to Section 16. To date, Solara has drilled five successful oil wells on the Dewberry project lands.
The Company also announced that it has set in production casing in a potential oil well the Company recently drilled in the North Sounding Lake area of eastern Alberta. The Company has plans to complete the well for production within the next several weeks contingent on surface access. The new well directly offsets a producing oil well that the Company drilled in October, 2009. The Company owns an 80% working interest in the new well.
Solara plans to drill a horizontal well to evaluate the Cardium oil potential underlying lands in which it owns a 40% working interest in the Buck Lake (Pembina) area of western Alberta. Solara expects that the well will be commenced in late June subject to regulatory approvals.
Solara has entered into a contractual arrangement with Macam Limited which provides investor relations services to public companies in Canada. The terms of the agreement provide for a monthly retainer of $8,000 and 150,000 stock options at $0.15 per share on the basis that 50,000 options will vest at the end of every three month period commencing on April 1, 2010 until fully vested by December 31, 2010. The Board of Directors of Solara has approved the agreement together with the stock option grant, subject to regulatory and TSX Venture Exchange ("TSXV") approval. Macam Limited will assist the Company in disseminating investor relations information in the investment community in the interest of increasing Solara's exposure to prospective investors.
The Company also advised that its Board of Directors has approved the granting of 350,000 stock options to officers, directors, employees and consultants of the Company, subject to regulatory and TSXV approval. The stock options were issued with an exercise price of $0.15 per share and have a five year term with standard vesting provisions.
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