Solara Exploration Ltd. announces that it has entered into an agreement to purchase various interests in oil and natural gas properties located in Alberta. The net share of daily production from the properties is approximately 60 barrels of oil equivalent per day (BOE/d). In addition, Solara will acquire interests in 2,205 net undeveloped acres (892 net hectares) in close proximity to the producing wells on the properties. The aggregate purchase price being paid by Solara for the assets is $2,100,000, subject to adjustments at closing. The effective date of the transaction is June 1, 2008, with closing scheduled to occur on August 1, 2008. The purchase and sale is subject to various conditions customary for similar transactions. The Company will use cash on hand and bank operating lines to complete the transaction at closing.
The Board of Directors of Solara is pleased with the acquisition, which is expected to provide additional drilling and optimization opportunities for the Company.
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