|Fri May 25, 2007|
Oracle Energy Increases its interest in the Jonnell-Zamora 1 well
|May 25, 2007- Oracle Energy Corp. ("Oracle Energy") (OCL-TSX.V)(O2E-Frankfurt) announces that it has increased its interest in the Jonnell- Zamora # 1 well by an additional 27.09% by agreeing to pay 31% of costs to complete the re-entry. Oracle Energy now has a 45.84% interest in 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.
Recent re-entry operations had succeeded in reaching a depth of approximately 7,800 feet with approximately 26 feet remaining until the first objective is reached, specifically the 1st Hinnant sand. Upcoming work includes a sidetrack of the well targeting the 1st Hinnant sand. The 2nd Hinnant sand is also an objective. The proposed total depth for the sidetrack is 8,450 feet.
Project operator Pan American Production Ltd. has notified Oracle Energy that it has contracted a completion rig for the new operations that are scheduled to commence June 2007.
Oracle Energy has an 18.75% interest in any additional wells to be drilled on the 640 acres oil and gas lease situated in Zapata County, Texas.
Oracle Energy is a Canadian company with a diversified portfolio of international oil and gas interests.
Oracle will enter into a private placement of 3,000,000 units at a price of $0.25 per unit. Each unit consists of one share and one warrant. The warrant is exercisable for a two-year period, at $0.30 in the first year and at $0.40 in the second year. Proceeds from this proposed private placement will be used to fund Oracle's share of the costs to complete the re-entry well and for working capital purposes. The private placement is subject to regulatory approval.
ON BEHALF OF THE BOARD
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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, by their very nature, involve risks 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 may not result in commercial level of oil and gas production, changes in product prices and other risks not within the control of the Company, or disclosed in the Company's published material.
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