|Thu Jan 4, 2007|
Status Update On Romanian Fields
|January 4, 2007, Oracle Energy Corp. ("Oracle") (OCL-TSX.V) (O2E-Frankfurt) |
announces that it has received the following update from project operator Carpathian Energy;
The No. 3 Well at Nadlac Field was tested and ready for production in January, 2006. Since then, various government agencies have required numerous papers and reports to be filed before approval could be granted to put the well on production. Carpathian has submitted all required paperwork and is now waiting for final approval from the last agency.
During 2006 and in anticipation of Romania becoming a member of the European Union (EU), Carpathian, along with other energy companies active in Romania, worked with the various agencies to find solutions to solve some of the procedures that have caused such delays. As a result, certain procedures required under the Petroleum Law are being modified during January, 2007 whereby oil or gas wells ready to be produced will be granted immediate approval with any additional paperwork required being submitted afterwards. Because of this modification, Carpathian does not expect any unreasonable delays on additional wells to be put on production during 2007.
Carpathian has been producing the No. 3 well every few weeks and flaring the gas in order to maintain pressure and some flow activity, while waiting to receive the required permits to produce.
Proposed work on the No. 4 well and the No. 100 well has been temporarily suspended pending the resolution of the permits to produce wells in the field. Once approval has been received, Carpathian still plans to attempt reentry of the No. 4 well and reevaluate the oil and gas zones.
Carpathian has determined that drilling new wells in Cozieni field is the best approach to recovering the maximum amount of gas reserves remaining. Originally, it was thought that reentry of existing well bores would be practical. However, additional information indicates that the well bores may not have adequate cement bond.
When Carpathian's drilling rig is ready to begin drilling in Romania, the company plans to drill the first 2 wells in the Cozieni field before moving the rig to the Bordei Verde Vest field to commence a drilling program there. Carpathian expects to drill these 2 wells in early 2007.
Modifications to the drilling rig purchased by Carpathian have been completed and, at present, the company is waiting final approval from the Romanian customs, imports and tax agencies before shipping the rig to Constanza on the Black Sea. Because of the delays experienced by the company in placing on production the No. 3 well at Nadlac field, the rig will be shipped once all the permits are finalized and approved. It is expected that the rig will be able to be shipped during the first quarter, 2007.
Oracle Energy Corp. is a Canadian based international oil and gas company with interests in Italy, Romania, Peru and Texas, USA.
ON BEHALF OF THE BOARD
The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this news release. 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. The information contained herein does not constitute an offer of securities for sale in the United States, United Kingdom, Canada, Japan or Australia.
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