Orchard Spuds Citrus #7 at Southeast Lost Hills

Orchard Petroleum Limited (Orchard) and Orchard Petroleum Inc. (OP Inc.), a wholly owned subsidiary of Orchard, said that the Citrus #7 well, on acreage adjacent to the Southeast Lost Hills Project onshore California, spudded at 4 a.m. on 5 January 2007 (Pacific Coast Time, USA).

Orchard is the operator and is partnering in this drilling program with Nuenco NL and other participants. Orchard farmed into the acreage in 2006 with the requirement to drill a well on the acreage.

The Citrus # 7 well is designed as an appraisal well of the Southeast Lost Hills shallow gas discovery made by Orchard on the adjacent Southeast Lost Hills acreage. The well is designed to test zones of interest in the Pliocene, San Joaquin and Etchegoin Formations.

The Citrus # 7 well is expected to take approximately 7 days to reach a target depth of approximately 4,000 feet.

Participants in the Citrus No. 7 well are:

--Orchard (Operator) 35%
--Nuenco 30%
--Other Participants 35%