|Mon Aug 20, 2012|
Oracle Energy Corp. Signs Memorandum of Understanding with Bolad Energy
|Vancouver, British Columbia August 20, 2012---Oracle Energy Corp. ("the Company" or "Oracle Energy" or "Oracle") (TSX.V: OEC) (Frankfurt: O2E) is pleased to announce that it has entered into a Memorandum of Understanding ("MOU") with Bolad Energy Company Ltd, a Nigerian registered corporation. Oracle's objective in securing the MOU is to participate as the technical and financial partner in the new Marginal Field bidding round expected to be announced by the Nigerian Department of Petroleum Resources. Marginal Fields are oil and gas properties in Nigeria that have not yet been commercialized, but they may have been explored or partially explored. Marginal Fields are open to bidding only by indigenous Nigerian companies. |
Oracle's Chairman Nasim Tyab commented, "In Bolad we have a partner that has aspirations to become an industry leading indigenous exploration and production company. With our complimentary technical skills and financing capabilities we think we have the winning combination to build a successful Nigeria exploration and petroleum producing venture."
Bolad was formed in 2006 and comprises a highly experienced team of former international oil company executives with a proven track record of exploration success and bringing major Nigerian oil and gas fields into production. Bolad has strong relationships with Nigerian government agencies responsible for oil and gas regulation and international oil companies operating in Nigeria.
Bolad's Chairman Babatunde (Segun) Agboola says "With Oracle Energy's technical excellence and management's proven track record in financing projects, we have the complementary skills to build a successful joint venture. We are both committed to safe operations, maximizing Nigerian content in the execution of work programs and working in harmony with the local communities."
The MOU does not create obligations on either party other than giving Oracle the opportunity to negotiate and enter into definitive agreements for participation in field development and production for any fields awarded to Bolad.
About the Nigerian Oil and Gas Industry
Nigeria's proven oil and gas reserves are estimated by the United States Energy Information Administration (EIA) at 37.2 billion barrels and 187 TCF, respectively. Its reserves make Nigeria the tenth largest in world oil reserves and seventh largest in world gas reserves. In 2011 its crude oil production was averaging around 2.5 million barrels per day.
The Marginal Fields program was introduced to encourage indigenous participation in the oil industry and to provide the government with revenue from fields that are currently undeveloped. The program is also intended to discourage continuous holding of undeveloped fields by international oil companies. According to a Nigerian Department of Petroleum Resources (DPR) announcement in 2012 the government intends to open up bidding, by indigenous companies, for fields with commercially viable volumes. The DPR regulates the oil and gas industry in Nigeria.
About Oracle Energy
Oracle Energy Corp. (TSX.V: OEC) (Frankfurt: O2E) explores and develops oil and gas properties. The Company has agreed to sell its interests in its only oil and gas asset in Romania and seeks to acquire additional international projects.
ON BEHALF OF THE BOARD
Chairman and CEO
Forward Looking Statements
This news release contains forward-looking statements and forward-looking information, which is 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 that the parties may sign and close a definitive agreement, and that we can jointly bid on, win and develop a Nigerian oil and gas project with Bolad. 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; our inability to locate or negotiate an acquisition of a project; 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 our potential inability to finance a project even if we do win the right to develop it. 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: Wed Nov 28, 2012, Oracle Energy Corp Finalizes Sale Of Romanian Project Interests
You can view the Previous News Releases item: Mon Jun 25, 2012, Oracle Energy Restructures Management Team and Board of Directors, Issues Incentive Stock Options
You can return to the main News Releases page, or press the Back button on your browser.