Orchard Reports Launch of South Belridge Drilling

Orchard Petroleum Limited (Orchard) and Orchard Petroleum Inc. (OP Inc.), a wholly-owned subsidiary of Orchard, said that the new 23-well drilling program at the South Belridge Project commenced at 5:30 pm on 9 November 2006 (Pacific Coast Time, USA) with the spudding of the SB 146-7 well.

The SB 146-7 well is being drilled by Nabors Industries, Inc. using the new Coil Tubing Rig (CTR) technology. As this is the first well using CTR technology, SB 146-7 is being drilled as a water disposal well to a target depth of 1,400 feet which is planned to reduce overall production costs from the site.

The next well to be drilled at South Belridge will target hydrocarbons in the Diatomite and Etchegoin sand formations. The target depth for this well is approximately 5,000 feet. Orchard is the operator and is partnering in this drilling program with Maxim TEP (Maxim). The South Belridge Project is located in the San Joaquin Basin which is in the southern part of California, USA.

OP Inc. and Maxim each hold a 50% working interest in new wells at the South Belridge Project. OP Inc. is the operator at South Belridge.


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