Oracle Energy Corp.
TSX VENTURE : OCL
FRANKFURT : O2E

Oracle Energy Corp.

January 17, 2006 16:07 ET

Oracle Energy Corp.: Update on Analysis of Oil Zone at 9390 Feet (9500 ft with Elevation) in Nadlac Field, Romania

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 17, 2006) - Oracle Energy Corp. (TSX VENTURE:OCL)(FWB:O2E) is pleased to announce that it has received the following update from project operator Carpathian Energy on the oil zone in the Nadlac Field, Romania:

Initial review of data and field information recently obtained by Carpathian Energy from Petrom S.A. (the former state owned oil company of Romania), indicates that the oil section beginning at 9390 feet (immediately below the gas section previously analyzed) contains significant commercial recoverable oil reserves. This zone was not previously analyzed by Carpathian and no reserves had been assigned to it.

The field information shows that the oil zone was, in fact, previously tested on several occasions by the state company, but because of different strategies at the time, as well as completion and cementation problems, the zone was only commercially produced out of one well on the edge of the structure, the No. 6 well.

The geological data indicates that the oil zone is field wide and covers an area of at least 860 acres. The data shows the oil column to be at least 71 feet thick, although production tests indicate it could be greater. Porosity is reported to be 7% to 15%, with some shaly sections and fracturing within the sand. Permeability is estimated to be 50 to 100 millidarcies. Gravity of the oil in the field as analyzed from 41 to 52 degrees.

In Romania, the former state owned oil company would often conduct tests of a particular zone and then move up the hole to test other zones, even after a successful test of hydrocarbons. In some instances, especially in a field with multiple zones, the deeper zones would not be returned to and the well would only be produced from the last zone tested. This appears to have been the pattern at Nadlac.

In Nadlac Field, the oil zone at 9390' was previously tested at the top of the section, in the No. 4672 well, at a daily rate of 3,200,000 cubic feet of gas plus 271 barrels of oil, on a 15/64 inch choke. This well was also tested lower in the same zone and flowed at a rate of 3,700,000 cubic feet of gas per day and 170 barrels of oil per day during a test on a 12.5/64 inch choke. The well was then produced from a higher zone and the 9390' zone was plugged off. On the edge of the structure, the No. 6 well produced approximately 133,000 barrels of oil from this same zone when water encroached and the well was plugged. No wells in the field were ever put on pump. If the wells did not flow under their own pressure, they were not produced.

Work is continuing on the cleanout of the No. 100 well, which is situated near the center of the field. Once the well is cleaned out, new logs will be run in the wellbore to fully establish the extent of the oil zone and further evaluate other potential in the field. If bond log analysis shows good cementation, then the 100 well will be tested and completion attempted in the oil zone.

Once the final reservoir analysis of the field is completed, Oracle Energy will be provided with that report.

Pursuant to the property purchase agreement dated July 5, 2004, as amended Aug. 17, 2005, between Oracle Energy Corp. and Carpathian Energy Companie Petroliera, Oracle Energy holds a 20% participating interest in six oil and gas concessions located in Romania known as the Bordei Verde Vest field and the Nadlac, Catrunesti, Cozieni, E. Ciumeghiu and N. Ciumeghiu concessions.

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, by their very nature, involve risks 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 may not result in commercial level of oil and gas production, changes in product prices and other risks not within the control of the Company, or disclosed in the Company's published material.

The information contained herein does not constitute an offer of securities for sale in any jurisdiction including 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