Oracle Energy fka OCL

[Tackler]

Anytime is now... Oracle Energy partner transports rig to block 22

2005-10-12 05:21 ET - News Release

Mr. Nasim Tyab reports

DRILLING RIG BEING TRANSPORTED TO YEMEN WELL SITE

Oracle Energy Corp. has been notified by block 22 operator, Yemen Mayfair Petroleum Corp. (YMPC), that the ship carrying the drilling rig and casing docked in the port of Hodeida, Yemen, early last week. Customs clearance has taken place and transportation to the well site has commenced.

Principals of YMPC were instrumental in the discovery of Yemen's first giant oil field in the mid-1980s, located in the Marib basin. Block 22 was awarded to YMPC in 1993. It encompasses 8,151 square kilometres within the Tihama basin in the western region of the Republic of Yemen. YMPC has invested in excess of $18-million (U.S.) on exploration programs to date. These expenditures have resulted in proving a working hydrocarbon system; the definition of the postsalt Miocene marine sedimentary fairway; the identification of a structure (the Beta prospect) capable of holding more than 200 million barrels of recoverable oil; and definition of a number of follow on leads or prospects.

Oracle Energy Corp. holds a 7-per-cent participating interest in block 22 and the upcoming exploratory well drilling program designed to test its potential. The company also has entered into an option agreement to increase its interest in block 22 by an additional 8 per cent to total 15 per cent. The option is to be exercised by Oct. 15, 2005. The $560,000 (U.S.) required to be paid to YMPC to exercise the option would be added to Oracle's contribution toward the drilling, testing and completion of the Beta 1 well. The option agreement is subject to TSX Venture Exchange approval.