Oracle Energy Corp.
TSX VENTURE : OCL

Oracle Energy Corp.

October 12, 2005 12:54 ET

Oracle Energy Corp.: Drilling Rig Being Transported to Yemen Well Site

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2005) - Oracle Energy Corp. (TSX VENTURE:OCL) is pleased to announce that it has been notified by Block 22 operator Yemen Mayfair Petroleum Corp. (YMPC) that the ship carrying the drilling rig and casing docked in the port of Hodeida, Yemen early last week. Customs clearance has taken place and transportation to the well site has commenced.

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. It encompasses 8,151 square km within the Tihama Basin in the western region of the Republic of Yemen. YMPC has invested in excess of U.S.$18 million on exploration programs to date. These expenditures have resulted in proving a working hydrocarbon system; the definition of the post-salt Miocene marine sedimentary fairway; the identification of a structure (the "Beta Prospect") capable of holding more than 200 million barrels of recoverable oil and definition of a number of follow on leads or prospects.

Oracle Energy Corp. holds a 7% participating interest in Block 22 and the upcoming exploratory well drilling program designed to test it's potential. The Company also has entered into an option agreement to increase its interest in Block 22 by an additional 8% to total 15%. The option is to be exercised by October 15, 2005. The US$560,000 required to be paid to YMPC to exercise the option would be added to Oracle's contribution towards the drilling, testing, and completion of the Beta -1 well. The option agreement is subject to TSX Venture Exchange approval.

ON BEHALF OF THE BOARD

Nasim Tyab, President

The information above relating to the Beta Prospect and the geology was obtained from YMPC and a report previously commissioned by the Company. Some of the statements contained in this release are forward-looking statements, such as 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. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in those statements.


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

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