Orchard Encounters Gas at South Belridge Well

Orchard Petroleum reports that the SB 6-12 well reached a total depth of 4,412 feet at 1230 on November 24, 2006. Strong gas shows along with oil shows were recorded on the mud log in both the shallow Etchegoin Formation and the deeper Belridge Diatomite. The latter oil and gas shows are consistent with those seen across the South Belridge acreage position.

The added benefit of seeing oil shows in the shallow Etchegoin Formation along with gas was very encouraging. Consideration will be given to developing the potential reserves in the Etchegoin as a separate program to the already established Diatomite development program.

As a consequence of the log results, the decision was made to complete the well and prepare it for a multi-staged fracture stimulation program of the Diatomite intervals. This is expected to occur as soon as the frac equipment can be arranged.

The Nabors' rig was released and was subsequently moved to the site of the third well, SB 12-7, in the new 23 well drilling program at the South Belridge Project. The SB 12-7 well was spudded on November 27, 2006 and has reached a depth of 525 feet and was setting surface casing.

The SB 12-7 well will also target hydrocarbons in the Diatomite and Etchegoin formations. The target depth for this well is approximately 5,000 feet. The well is being drilled by Nabors Industries, Inc. using the new Coil Tubing Rig (CTR) technology.

Orchard is the operator and is partnering in this drilling program with Maxim TEP. The South Belridge Project is located in the San Joaquin Basin which is in the southern part of California.

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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