Oracle Energy fka OCL

[Tackler]

Oracle picks up 12.5% of Texan oil and gas lease

2006-12-19 21:24 ET - News Release

Mr. Nasim Tyab reports

ORACLE ENERGY ACQUIRES 12.5% INTEREST IN 640 ACRES ZAPATA COUNTY, TEXAS

Oracle Energy Corp. has acquired from Pan American Production Ltd. a 12.5-per-cent interest in a 640-acre oil and gas lease situated in Zapata county, Texas. Pan American is the operating partner and now holds a 25-per-cent interest. There are three other partners holding the remaining interests. Re-entry operations are now under way on the Jonnell Zamora No. 1 well. Principal target zones are specifically the first and second Hinnant sand sections. Oracle has contributed $284,000 (U.S.), which will cover its portion of costs to well hookup.

The Jonnell Gas Company Zamora No. 1 was drilled in April, 1961, and was completed as a gas well from the first Hinnant sand. The top 10 feet of the first Hinnant sand was perforated, and flowed at rates up to four million cubic feet per day. The well was never commercially produced due to being a dry gas discovery, and no market existed in 1961 to transport dry gas. Pan American has leased the drill site and associated 640 acres and has re-entered the Zamora No. 1 well, with the objective of recompleting the well in the first and second Hinnant sand reservoirs. A finder's fee is payable on this transaction.

Fiume Arrone permit, Italy

The drilling of the Arrone-1 well in the Fiume Arrone exploration permit (Oracle 20 per cent) has been postponed and now may be drilled, contingent upon access to the drilling location, when the rig contracted by Ascent Resources (40 per cent) completes other work and returns to Italy from Spain.