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Author Topic: Nov. 28 Article on OCL - Street Investing
dtaylor
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Oracle Energy Corp (OCL) CDN
TSX-V:OCL

Average Volume: 523,108
52-Week High / Low: 1.36 / 0.095
Shares Outstanding: 28,333,000

Oracle Energy Corp. is a junior energy company actively engaged in the development of 6 oil and gas fields in Romania with JV partner Carpathian Energy. This is an advanced stage project where management is expecting production to commence within a few short months. Oracle is also engaged in the exploration and development of a suite of premier oil prospects situated on Yemen's Red Sea coast proximate to the Saudi Arabian border.

The company's priority exploration project is the Beta Prospect, located on the 8,151 square km Block 22 property, within the oil-rich Tihama Basin. Following extremely encouraging results from three phases of exploration conducted by the company's joint-venture partner, Mayfair Petroleum. Oracle Energy Corp. is embarking on an aggressive exploration and drilling program, targeting an identified structure with the potential to contain a major discovery of more than 200 million barrels of oil.

Oracle Energy Corp.'s Joint Venture Management Team is a group of highly motivated professionals with extensive experience in corporate development and an in-depth knowledge of the oil exploration industry in Yemen, the Middle East and worldwide. Having seen success in such a short period of time, will they continue their progress and bring forth a strong shareholder presence? Many investors believe that now is a good of time as any to be involved with this company who are in advance stages of their projects. If the potential of even one of their projects is a success, we will soon see their share value rocket beyond their 52-week high and reward investors with some deserving gains.

In 2001 Arne Greaves, CEO of Inland Petroleum formed Carpathian Energy with his Romanian Partner Alexandru Popescu, with the explicit goal of acquiring concessions on Government oil and gas fields that had been shut down or abandoned due to lack of technology and money. Oracle entered into an agreement to acquire a 20% working interest in the 6 concessions that Carpathian was awarded by the Romanian Government in November 2002. Since then, preliminary feasibility studies and analysis has been performed by Carpathian with the data leading management to believe that there is over 3 million barrels of recoverable oil (BO) and 12 Biliion cubic feet (BCF) of recoverable gas.

In 1991, Al-Malazi and Fairchild formed Mayfair Petroleum to conduct further exploration in Yemen, and pinpointed the Tihama Basin as a highly prospective area for future large oil discoveries. The company was awarded Block 22 in 1993 on uniquely attractive terms. Oracle acquired a 7% participating interest in the production sharing agreement on Block 22. Under the agreement, Oracle Energy Corp. has raised US $700,000 towards the cost of drilling the Beta Prospect and will pay a further US $700,000 towards the cost of drilling the Beta Prospect. If the drilling program is successful, Oracle Energy Corp. will contribute a further US $1.25 million, as a contribution to past costs, to earn its participating interest.

Since 1993, Mayfair has been exploring the oil-prone Tihama Basin and has spent a total of US$16 million to evaluate Block 22. Mayfair has completed three exploration phases to date including the acquisition of 640 km of new seismic data and the drilling of the Alpha-1, Gamma-1 and Delta-1 wells. To date, Mayfair has proved a working hydrocarbon system, defined a post-salt Miocene marine sedimentary fairway and identified a structure capable of holding more than 200 million barrels of recoverable oil.

Block 22 lies within the oil-prone Tihama/Jaizan Basin, which contains several discoveries in the Upper Miocene. Wells drilled adjacent to Block 22, across the border in Saudi Arabia are reported to have flowed oil, in one instance at a rate of 600 bopd, with the potential to flow up to 2000 bopd upon proper completion. Within Block 22, surface oil seeps occur on the Salif Peninsula, and have been used by the local population as a source of fuel. Oil seeps are also reported on the nearby Farasan Islands. Oil and gas shows were recorded over an interval of 2,500 feet in the offshore A1-Meethag-1 well, which contains hundreds of feet of rich oil-prone source rock within the objective Upper Miocene marine section. Onshore, small quantities of oil were recovered from the Abbas-1 and Alpha-1 wells.

A working hydrocarbon system is clearly present within Block 22 and drilling on the Beta Prospect will test the thickest Upper Miocene marine section present onshore in a location that is optimal for the development of high quality reservoir rocks.

So where exactly does the Beta Prospect stand? They are slated to commence drilling within the next few months and based on exploration conducted to date, Oracle believes excellent potential exists for a commercial discovery during the upcoming drilling program. In addition, seismic data indicates several other prospects in the Upper Miocene marine fairway within Block 22. We should see exactly where Oracle stands in the very near future.

As this potential hidden gem embarks on this major exploration program, in partnership with a highly acclaimed joint-venture partner, the company is positioned to play an active role in the development of the next Middle Eastern oil province.

Oracle benefits from their management’s venture capitalistic approach. Often, this equates to a very good upside potential for shareholders but associates itself with the notion of risk for reward. The prospective near-term ability for this company to bring cash flow with their advance projects adds intrinsic value into Oracle's share price and this has been shown by the positive upward correction and momentum in share value. With the presence of high-energy prices and Oracle’s potential for near-term revenue growth, investors may be rewarded significantly for their play in this company. However, we may soon find out if the reward outweighs the risk. Lets keep our eyes on this one.

Editor in Chief,
Streetinvesting.com

Streetinvesting.com has no vested interest in the above companies nor are they warranted in anyway.

Posts: 31 | Registered: Nov 2005  |  IP: Logged | Report this post to a Moderator
   

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