|Wed Jan 31, 2007|
Oracle Energy acquires additional 6.25% interest in 640 acres Zapata County, Texas
|January 31, 2007- Oracle Energy Corp. ("Oracle") (OCL-TSX.V)(O2E-Frankfurt) announces that it has acquired from Pan American Production Ltd. ("Pan American") an additional 6.25% interest in a 640 acres oil and gas lease situated in Zapata County, Texas. Oracle's interest is now 18.75%. |
Re-entry operations are continuing on the Jonnell Zamora #1 well. A depth of approximately 7,800 feet has been reached with approximately 26 feet remaining until the first objective is reached, specifically the 1st Hinnant sand. Oracle has contributed an additional US$142,000 that will cover its portion of costs to well hook up.
Pan American has notified Oracle that it is now in the process of contracting a completion rig to continue the operations and perform final completion work on the Jonnell-Zamora # 1 well.
The Jonnell Gas Company Zamora #1 was drilled in April of 1961 and was completed as a gas well from the 1st Hinnant sand. The top 10' of the 1st Hinnant Sand was perforated, and flowed at rates up to 4 mmcfg/d. 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 #1 well, with the objective of re-completing the well in the 1st and 2nd Hinnant sand reservoirs. A finder's fee is payable on this transaction.
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.