|Mon Dec 7, 2009|
Relinquishment of J. Vela #1 well, Zapata County, Texas
|December 7, 2009- Oracle Energy Corp. ("Oracle") (OCL-TSX.V)(O2E-Frankfurt) announces that it has received notification from Ventum Oil & Gas LP of Houston, Texas, ("Ventum") that Oracle is in default of its obligations on the J. Vela #1 well and has received a letter of relinquishment from Ventum informing Oracle that its interest in the J.Vela #1 well has been forfeited. |
The Ventum action arose from a dispute between Ventum and Oracle over cost "overruns" pertaining to the J. Vela #1 well and the Chitsey project. The Chitsey project was the subject of a previous press release dated September 3, 2008. Oracle disputes the costs that it has been assessed. To date, Ventum has not provided Oracle with an adequate explanation for these costs. Oracle puts no ongoing value on the J Vela well property due to very low productivity. We do not anticipate that this action will have any material impact on Oracle's financial situation.
Oracle also announces that it has retained Chapman Petroleum Engineering to prepare the reports required to be filed by Oracle pursuant to National Instrument 51-101. Oracle's failure to file these required reports is the subject of the current cease trade order. Once the reports are complete, Oracle will file the reports with the securities regulators.
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.