Orchard Reports South Buckeye Strike

Orchard Petroleum Limited (Orchard) and Orchard Petroleum Inc. (OP Inc.), a Wholly owned subsidiary of Orchard, announced that the South Buckeye 1-18 exploration well at the Forbes Gas Project has reached its targeted depth of 9,600 feet and has encountered gas in one of the objectives between 9,315 feet and 9,345 feet.

Based on the electric logging of the well, there appears to be approximately 10 to 15 feet of net pay in the Forbes formation interval. The amount of net pay encountered in this well is characteristic of Forbes formation gas producing wells in the area.

The decision has been made to set pipe and complete the South Buckeye 1-18 well. A testing program to determine the commerciality of the gas discovery will begin once a service rig can be scheduled. A commercial gas flow at South Buckeye 1-18 could be put on production under our current agreements with gas buyers following completion of short pipeline connections to the well.

The next well in the Forbes Gas Project will commence drilling within the next few days at the Heavenly Prospect. The drilling at the Forbes Gas Project area in the Sacramento Basin in Northern California is an important project for OP Inc. because it has a very large leased acreage position and is the Operator in this project. This area contains a significant prospect inventory covered by 3-D seismic as well as existing production operated by OP Inc. which enhances the commercial value of any discoveries.

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

The Executive Chairman of Orchard, Steve Graves said, "Orchard is very pleased with being able to progress to the next stage of development at the South Buckeye gas discovery well." "The Forbes Gas Project is a separate project from our oil and gas projects at South Belridge and Southeast Lost Hills in the southern half of the State of California in an area referred to as the San Joaquin Basin. In the event that the South Buckeye 1-18 well proves to be a commercial discovery, this is expected to enhance OP Inc.'s reserve and production base. A commercial discovery at South Buckeye 1-18 is likely to further support the new technical assessments of our prospects in the area and the ability to identify potential gas targets."

Orchard is an oil and gas production, development and exploration company based in Melbourne with a wholly owned subsidiary, OP Inc, which has operations focused in California's prolific hydrocarbon Sacramento and San Joaquin Basins.

Orchard has nine projects which includes an extensive land position in California. These projects include: South Belridge, Forbes Gas, Southeast Lost Hills and Turk Anticline along with an exploration joint-venture involving 5 projects with Aera Energy, LLC, which is jointly owned by Shell and ExxonMobil.