NEWS - NEWS - NEWS -
Oracle Energy Corp. to Acquire a 75% Interest in Area X111, Peru
19:24 EST Thursday, November 03, 2005
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 3, 2005) - Oracle Energy Corp. (TSX VENTURE:OCL)(FWB:O2E) is pleased to announce that it has entered into an agreement with Serpet Consult SA (Serpet) to acquire a 75% interest in an Evaluation Agreement to Promote (EAP) Area X111, located in the province of Maynas, Peru.
Area X111 comprises 500,000 hectares within Peru's Maranon basin. A five year study on the Maranon basin was completed by Robertson Research International, now known as Fugro Robertson International Ltd., one of the world's largest and most reputable upstream oil and gas consultancies. Robertson Research has calculated the volume of oil that was generated in the Maranon basin from its three main source rocks totals 137 billion barrels. Commenting on the Robertson Study, Nasim Tyab, President of Oracle Energy Corp. stated, "When this number is compared to the discovered proven recoverable reserves in the Maranon basin of 761 million barrels oil it is apparent that an excellent opportunity exists for the discovery of additional oil in significant quantities."
Oracle now holds a 30% working interest in the EAP having advanced Serpet US $125,000. The remaining 45% interest shall be earned upon payment of an additional US $125,000 at closing, which follows a period for additional due diligence and the negotiation and execution of a farm-in agreement and joint operating agreement (JOA).
The US $250,000 to be paid by Oracle to Serpet is allocated as follows: a) a prospect fee of US $150,000 and US $100,000 for execution by Serpet of a data reprocessing work program. Upon satisfactory completion of the work program both parties intend to enter into a Technical Evaluation Agreement (TEA) or Exploration and Production Agreement (EPA) With Perupetro to pursue additional operations in Area X111.
Upon execution of a TEA or EAP Oracle shall be responsible for paying all costs attributable to Serpet's working interest in the JOA to a maximum of US $2,500,000. Oracle shall be entitled to recover all costs and expenses incurred on behalf of Serpet out of 100% of production recovered from Area X111.
ON BEHALF OF THE BOARD
Nasim Tyab, President
The information above relating to the Maranon basin and the geology was obtained from Serpet Consult SA. Some of the statements contained in this release are forward-looking statements. Forward-looking statements include but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Company's projects and other statements which are not historical facts. When used in this document, and on other published information of the Company, the words such as "could", "estimate", "expect", "intend", "may", "potential", "should", and similar expressions are forward-looking statements. Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Various factors could cause actual results to differ from these forward-looking statements including the potential that the Company's projects will experience technical and mechanical problems, geological conditions in the reservoir may not result in commercial level of oil and gas production, changes in product prices and other risks not anticipated by the Company or disclosed in the Company's published material. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
FOR FURTHER INFORMATION PLEASE CONTACT:
Oracle Energy Corp.
Nasim Tyab
President
(604) 980-6620
(604) 602-9974 (FAX)
www.oracleenergy.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this news release.
AI
