|Wed Nov 2, 2011|
Oracle Energy Corp. Announces Australian Farm In Term Sheet
|Vancouver, British Columbia November 2, 2011)---Oracle Energy Corp. ("the Company" or "Oracle") (TSX.V: OEC) (Frankfurt: O2E) is pleased to announce that it has entered into a Term Sheet (the "Term Sheet") with 3D Oil Limited, a publicly traded Australian company ("3D Oil"), pursuant to which 3D Oil grants Oracle an exclusivity period until Feb 17, 2012 to finalize due diligence and definitive agreements regarding a 50 percent farm-in to the approximately 483 sq km Vic/P57 permit area in the Gippsland Basin in the Bass Strait offshore Victoria, Australia. |
Pursuant to the terms of the Term Sheet, Oracle is required to spend Aust $30 million on drilling two wells over 2 years to earn the 50 percent interest and can elect to become the operator of the permit area. Oracle and 3D each also get an opportunity to participate in an area of mutual interest which includes the Bass Strait where 3D currently holds another permit.
The permit area is 14 km offshore in 30 meters of water and includes a discovery for which Gaffney Cline & Associates identifies, in a Resources Statement dated Feb 2011, gross contingent resources (2C) of 9.2 million barrels of oil, based on previous exploration and appraisal drilling, in one field of the permit area. In addition there is an RPS Energy Independent Geological Expert's Report dated April 2007 which identifies 2 prospects, one of which has best estimate prospective oil resources of 20.7 million barrels of oil, and 3 potential leads. Both these reports are intended to be updated based on the latest interpretations and analyses, as part of the Company's due diligence. The reports were prepared in accordance with Australian oil and gas public disclosure requirements.
These arrangements are conditional on the completion of due diligence on title to the Permit and signing of definitive documents, both by 17 February 2012. Closing of the transaction is subject to a number of conditions including OEC signing an engagement letter with an investment bank to raise, on a best efforts basis, at least $15 million of financing and obtaining all necessary regulatory approvals, among other conditions. The transaction contemplated by the Term Sheet is not binding (except for exclusivity and certain other aspects relating to escrow) and there is no assurance that the transaction will be completed.
If the proposed transaction were to close, drilling of wells in the permit area is not expected to begin until late 2012.
The Company may pay finder's fees in connection with the Private Placement as permitted by applicable securities laws and the TSX Venture Exchange.
Oracle Energy Corp. (TSX.V: OEC) (Frankfurt: O2E) explores and develops oil and gas properties. The Company currently has interests in Romania and seeks to acquire additional international projects in the future. For further information on Oracle Energy and its projects please contact investor relations at (1) 778.331.2028 or email@example.com
ON BEHALF OF THE BOARD
Nasim Tyab, President
Senergy Communications Inc.
Tel: (1) 778-331-2028
Forward Looking Statements
This news release contains forward-looking statements and forward-looking information, which are based on information currently available to the Company, and the Company provides no assurance that actual results will meet management's expectations. Forward-looking information includes estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Such information includes that the parties may sign and close the Definitive Agreement, that the Company may raise sufficient funds to complete its obligations under the Term Sheet, that we obtain regulatory approval and that we intend to update reports and drill two wells in the permit area. Actual results could differ materially from those currently anticipated for many reasons such as: the failure to obtain the requisite approvals; the failure to satisfy conditions to closing; the failure to reach a definitive agreement; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for resources; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; and the possibility that even with substantial oil or gas resources contained within the permit area, the resources cannot be profitably extracted. This list is not exhaustive of the factors that may affect any of the Company's forward looking information and readers should consult the risk factors disclosed by other junior oil & gas companies as disclosed on SEDAR. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward looking information. The Company does not undertake to update any forward-looking information that may be made form time to time by the Company or on its behalf, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Mon Nov 7, 2011, Oracle Energy Corp. Announces Proposed Non-Brokered Private Placement
You can view the Previous News Releases item: Mon Oct 24, 2011, Oracle Energy Corp. Announces New VP of Exploration
You can return to the main News Releases page, or press the Back button on your browser.