Oracle Energy Corp.
TSX VENTURE : OCL
FRANKFURT : O2E
PINK SHEETS : OECPF

Oracle Energy Corp.

October 12, 2006 16:05 ET

Oracle Energy Corp.: Drilling Commences on Fatima Prospect, Block 22, Yemen

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - Oracle Energy Corp. ("Oracle") (TSX VENTURE:OCL)(PINK SHEETS:O2E)(FWB:O2E) announces that it has been notified by project operator Yemen Mayfair Petroleum Corp. (YMPC) that the Fatima-1 well, Block 22, Yemen was spudded October 12, 2006.

The well is planned to a total depth of 2250 metres and shall target the Middle Miocene that tested hydrocarbons in the Jaizan wells to the north, across the border in Saudi Arabia.

Oracle Energy Corp. holds a 15% participating interest in block 22, which encompasses 8,151 square km within the Tihama Basin in the western region of the Republic of Yemen. YMPC and its partners have invested in excess of U.S. $20 million on exploration programs to date. Principals of YMPC were instrumental in the discovery of Yemen's first giant oil field in the mid-1980's, located in the Marib basin. Block 22, was awarded to YMPC in 1993.

ON BEHALF OF THE BOARD

Nasim Tyab, President

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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the contents of this news release.

Contact Information

  • Oracle Energy Corp.
    Nasim Tyab
    President
    (604) 980-6620
    (604) 602-9974 (FAX)
    Website: www.oracleenergy.com