Overview:
— Solara Exploration has concluded two purchase and sale transactions, acquiring 110 BOE/D during the year.
— Solara Exploration has taken part in the drilling of five wells resulting in two gas wells, two oil wells and one dry and abandoned well.
Solara Exploration achieved growth in key aspects of its financial and operating results for the year-end 2008 compared to the previous year. These results were mainly due to increased sales production from the acquisitions of producing properties and higher oil and natural gas selling prices during the year relative to 2007. Capital expenditures for the year-end 2008 were CAD5.4 million, comprised mainly of asset acquisition costs, drilling, seismic and facility investments.
Solara Exploration’s daily sales production averaged 303 BOE/D for the year inclusive of royalty production. Based on the GLJ Report at December 31, 2008, total proved plus probable oil, natural gas and liquids reserves rose by 320,000 BOE representing a 37% raise compared to the previous year. This raise resulted mainly from the two asset acquisitions completed by the company in 2008. Solara Exploration had bank debt of CAD7.5 million on an operating line of CAD10 million with its lender at year-end 2008.
