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

Oracle Energy Corp.

August 23, 2006 18:23 ET

Oracle Energy Corp.: Rig Contracted to Drill Arrone-1 Well on Fiume Arrone Permit, Italy

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2006) - Oracle Energy Corp. ("Oracle") (TSX VENTURE:OCL)(PINK SHEETS:OECPF)(FWB:O2E) announces that it has been notified by Ascent Resources Plc that Ascent's Italian subsidiary has contracted a rig to drill the Arrone - 1 well on the Fiume Arrone Permit near Rome's Fiumicino airport. Subject to Italian regulatory approval, the rig is expected on location to commence drilling on or about the end of October 2006.

The 358 sq km onshore Fiume Arrone Permit, is along the coast of Italy to the west of Rome. It contains the Roma 1 and Roma 2 wells drilled in 1955 the latter of which was reported to have had shows of gas. The first well, planned to be 950m deep, will target a gas prospect identified from seismic.

Oracle Energy holds a 20% interest in the Fiume Arrone Exploration Permit. The other partners with an interest in the Permit are Ascent Resources plc (40%), Italmin Exploration (30%) and JKX Oil and Gas plc (10%).

Oracle Energy Corp. is a Canadian based international oil and gas company with interests in Italy, Yemen, Romania and Peru.

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.

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