Orchard Petroleum Spuds Heavenly Well

Orchard Petroleum reports that the Heavenly 2-28 well in the Forbes Project was spudded November 27, 2006 using the Kenai #3 rig. The well has been drilled to a depth of approximately 298 feet and is currently drilling ahead. The Heavenly prospect is expected to take approximately 15 days to reach the target depth of 9,700 feet.

The Heavenly 2-28 well is targeting several potential gas-bearing stratigraphic traps in the Forbes Formation, a prolific gas reservoir in the region. The prospect is analogous to the gas discoveries made at the Larner 1-12 and 2-12 wells which are both currently on production, and the more recent gas discovery at South Buckeye 1-18 which will undergo testing to determine the commerciality of the discovery. The Heavenly prospect is approximately 7 kilometers southwest from the producing Larner wells, and approximately 7 kilometers northeast of the South Buckeye 1-18 well.

Orchard is the operator and is partnering in this drilling program with Livingstone Energy Inc., a wholly-owned subsidiary of Livingstone Petroleum Ltd.

The Forbes Project is located in the Sacramento Basin which is in the northern part of California, USA.

Participants in the Heavenly 2-28 well are Orchard Petroleum as operator with 50% and Livingstone Energy, Inc. with the remaining 50%.

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