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Orchard Petroleum Limited
ABN 25 061 655 463
23 September 2005
Joint ASX and Media Announcement
New Drilling Program to Start in Sacramento Basin—Part of Forbes Gas
Project with Livingstone Petroleum Ltd.
Orchard Petroleum Limited (ASX: OPL) (Orchard) and Orchard Petroleum Inc. (OP Inc), a
wholly owned subsidiary of Orchard, are pleased to announce a new drilling program in the
Sacramento Basin (Forbes Project) of California.
OP Inc plans to resume drilling in October 2005 in the Sacramento Basin area of California
where we have approximately 15,000 acres of leased mineral rights. This acreage is the Forbes
project where we are partnering with Livingstone Petroleum Ltd (ASX: LPL) (Livingstone) and
Livingstone Exploration, Inc, its wholly owned subsidiary.
A drilling rig has been contracted for a period of six weeks to drill between two to three wells
depending on actual drilling time and other logistical matters.
The wells to be drilled are Larner North 2-12 and Wallace 2-13. The Larner well is located near
the site where OP Inc’s first gas discovery was made last year in this area. Our target is a Forbes
Formation, a prolific gas producing structure in the region and very similar to the first gas
discovery made at Larner1-12.
The Wallace well is expected to be drilled approximately two miles from Larner North. It will
also target a potentially gas charged Forbes Formation. A third prospect has been identified and
will be readied should we be able to complete the first two wells within the expected timeframes.
Depending on final rig availability, it is expected that drilling will commence mid October. OP
Inc has a 50% interest in the Forbes project and is the Operator. Livingstone holds a 50%
interest.
Comments
Orchard is very pleased to be restarting the Forbes Project with its new partner Livingstone. Our
leased area is a very productive gas region with good infrastructure for us to take a discovery to
market in very short order. With gas prices above US$ 10 per mcf, it could not be a better time to
be drilling gas wells.
For further information please contact Mr Steve Graves on 0011 1805 469 4656.
The geological information included in this announcement is based on information
provided by Mr Edward Duncan, a qualified geologist employed as a technical consultant
to the Company. Mr Duncan has practiced as a geologist in the petroleum industry for
over 20 years. Mr Duncan has consented to the inclusion of the geological information in
this announcement in the form and context in which it appears.