|Mon Jul 8, 2013|
Oracle Energy Corp. Announces TSX Venture Approval for and Technical Report on Portugal Concession
|Vancouver, British Columbia, July 8, 2013 - Oracle Energy Corp. ("the Company" or "Oracle Energy", or "Oracle") (TSX.V: OEC) (Frankfurt: O2E) is pleased to announce the TSX Venture Exchange has accepted for filing the contract between Government of Portugal and Oracle for Petroleum Exploration, Development and Production Rights in the Barreiro Concession Area (the "Property") granted Feb 1, 2013. The Property covers an area of approximately 211,275 acres (855 sq. km) in Portugal's southern Lusitanian Basin.|
The contract, essentially a government concession to explore for oil & gas, provides for an initial exploration period of 8 years. The work program includes a first year commitment of €78,000 for Geological & Geophysical studies and a second year commitment of €234,000 for airborne gravity and magnetic data acquisition, seismic reprocessing, and geologic interpretation.
The Exchange has also accepted for filing the Agreement dated November 17, 2011 between Oracle and Mohave Oil and Gas Corp ("Mohave"), whereby Mohave will provide Oracle advice in selecting and obtaining a concession from the Portuguese government. Under the agreement, if Oracle is awarded such a concession, Mohave will have a three year option to obtain a maximum working interest of 25% in the concession, subject to approval of the government of Portugal. Mohave has earned this option regarding the Barreiro Concession.
An NI 43-101 Technical Report dealing with the Company's Barreiro oil and gas concession has also been accepted by the TSX-V. The report, by Chapman Petroleum Engineering Ltd., deals with two of the three areas of oil & gas potential expected to be present in the property; the Triassic Pre-salt, and a Liassic (Lower Jurassic) unconventional resource play. A Jurassic reef play, which Oracle expects to be present in the concession, was not considered in the report due to lack of data at this time.
The report indicates best estimate prospective resources in the Silves formation of 34,690 MMscf with a net present value before income tax, discounted at 10%, before risk, of $95.7 91.6 million. The report also indicates best estimate prospective resources in the Lias formation of 237,668 MMscf. No economic analysis was performed on the Lias due to the early stage and large infrastructure needed to fully develop these considerable resources.
The reservoir of the Triassic Silves Fm. consists of continental fluvial and alluvial clastics, with similarities to many producing areas including the giant Hassi R'Mel gas field in Algeria and Sarir, the largest oil field in Libya, as well as many North Sea fields. A close analogy to the Lias play is the Ayoluengo field in the early Jurassic of the Basque-Cantabrian Basin in Northern Spain.
Oracle's Chairman Nasim Tyab remarked that "the Barreiro property provides a strong initial exploration asset for the Company and is expected to contribute to Oracle's growth."
About Oracle Energy Corp.
Oracle Energy Corp. (TSX-V: OEC, Frankfurt: O2E) is a Canadian oil and gas company focused on opportunities in upstream oil and gas in Europe and Africa. Oracle has built a strong management team with over 150 years combined experience in international oil exploration and development, economics and finance, and government relations. Oracle is committed to growth and shareholder value creation through exploration, development, and production - initially in Nigeria and Portugal. The Company holds a working interest in the Barreiro oil and gas concession (211,275 acres/855 sq. km), in Portugal's southern Lusitanian Basin. For more information on Oracle visit www.OracleEnergy.com
Chairman and CEO
Oracle Energy Corp.
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 that there are prospective oil and gas resources on our concession in Portugal. . Actual results could differ materially from those currently anticipated for many reasons such as: despite encouraging indications, there may not be any commercially recoverable resources on the Barreiro concession; 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. 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 from time to time by the Company or on its behalf, except in accordance with applicable securities laws.