|Thu Nov 15, 2007|
Oracle Energy updates operations in Zapata County, Texas
|November 15, 2007- Oracle Energy Corp. ("Oracle Energy") (OCL-TSX.V)(O2E-Frankfurt) announces that it has been updated by the operator, Pan American Production Company ("Pan-American"), on the status of the re-entry of the Jonnell Zamora #1 well. After extensive review of the last two weeks of operations on the Jonnell-Zamora #1 wellbore it has been determined that there are multiple "leaks/splits" in the 9 5/8" casing. These "splits" were probably the result of attempts to "cutoff" and pull the 9 5/8" casing in 1962. These "splits" appeared to have opened up and began leaking as a result of the previous 2 ½ months of re-entry operations. Presently there is no assurance that any of the "leaks" can be eliminated. |
Due to the cost and risks associated with an attempt to eliminate the casing leaks, operations to complete in the 1st Hinnant sands are now halted. However, it is proposed by Pan-American that the upper Queen City Formation in the Jonnell-Zamora wellbore be evaluated to possibly consider a shallow completion attempt targeting these upper zones. A decision should be made on whether to proceed with the Queen City completion within the next two weeks. Oracle Energy has been advised by Pan-American that the Queen City Sandstone formation is an upper Wilcox sand group that is a prolific producer in the Lopeno Gas Field located approximately 3.5 miles to the southwest of the Jonnell-Zamora well. Total Queen City production in the Lopeno Field exceeds 30 BCF. Typical initial flow rates average 1 -- 1.2 mmcfg/d per well. The average depth of the Queen City sands in the prospect area is 2500 -- 3500 feet.
Plans are also now being formulated to drill a new, vertical offset well targeting the 1st and 2nd Hinnant sands. 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.
Oracle Energy has a 45.84% interest in the Jonnell-Zamora#1 well and 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 Corp. is a Canadian based oil and gas company with a diversified portfolio of international oil and gas interests.
ON BEHALF OF THE BOARD
Oracle Energy Corp.
440-5525 West Boulevard
Canada V6M 3W6
T 604 980-6620
F 604 602 9974
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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