Oracle Energy Says Work Halted at Well 100 on Nadlac Field

Oracle Energy received the following update from project operator Carpathian Energy Companie Petroliera SRL on the Romanian field work and activities:

No. 100 Well - Nadlac Field

Carpathian has halted ongoing work on the No. 100 Well in order to re-evaluate the mechanical problems encountered in the wellbore. The workover procedures so far have retrieved 3500 feet of tubing from the bottom of the wellbore, however, workers on site have been unable to retrieve the remaining 1000 feet at this time. The wellbore and remaining stuck pipe will be reanalyzed by engineers to ascertain optimum methods available to retrieve the remaining tubing. During this period, as an alternative to the No. 100 Well, a workover rig will be moved to the No. 4 Well situated in the Nadlac field. The No. 4 Well is approximately 1800 feet from the No. 100 Well. Furthermore, there are three additional wells targeted for rework operations in the Nadlac field.

No. 4 Well - Nadlac Field

Carpathian is planning to move a workover rig onto the No. 4 Well in the Nadlac field to drill out its existing cement plugs and to run a Schlumberger RST Log to further evaluate the oil and gas zones behind pipe in the wellbore. According to the well records, there are no tubing or downhole items in the No. 4 wellbore. Presently, bids are being submitted to Carpathian for the workover procedures. The contract is expected to be awarded within the next thirty days.

No. 3 Well - Nadlac Field

The No. 3 Well is presently shut-in with closed in tubing pressure (CITP) at 2260 pounds per square inch. The necessary government permits have been approved to begin producing and transporting the gas into the national pipeline network. Carpathian is waiting on the pipeline agency to effect the final hookup to begin production from the well.

Purchase of Drilling Rig

Carpathian intends to purchase a trailer-mounted drilling rig capable of drilling to a 5000 foot depth in order to expedite and more efficiently drill new wells in the Bordei Verde West field and Carpathian other Romanian oil and gas fields. Carpathian Energy is currently looking for a suitable rig in the U.S. and Canada that will be practical and effectively mobilized in Romania. The rig will be shipped to Romania with a drilling program to begin in the second half of 2006.

Oracle holds a 20% participating interest in the Nadlac Field and five other oil and gas concessions in Romania.