Electric logs into the deeper Olig Potter Sandstone now confirm an oil column of over 200 feet. In addition, the Reef Ridge/Diatomite section contains over 500 feet of good oil shows in a number of intervals.

Success in the Diatomite zone extends the productive trend from the large Belridge Oil Field in the adjoining lease into Orchard's acreage. A production test is being run in one of two oil-bearing sands in the deeper Olig Potter Sandstone from a 40 foot perforated interval.

So far over a 24-hour test the well pumped 42 barrels of oil per day and 58 Mcf per day of associated gas. Pumping constraints are having an impact on test results.

Several thousand wells have been drilled on the Belridge Anticline although the Sledge Hamar 1-7 well is the first to establish hydrocarbons in the Olig Sandstones.

Orchard and its partners are also planning further exploration and development on the acreage, which will include additional appraisal wells in the Diatomite intervals and the deeper Olig zone interval; the first of which is expected to spud within the next 45 days.

The Reef Ridge/Diatomite zones will not be tested in this well bore, as there is sufficient production data from the adjoining permit to plan a development schedule.

Participants in Sledge Hamar 1-7 include Orchard Petroleum Inc 10%, Ivanhoe Energy 40% and Nahabedian Exploration Group, LLC 50%.

"The results in the Potter represent a new producing zone which enhances the prospectivity of Orchard's acreage and opens up further drilling opportunities. Sledge-Hamar 1-7 will be a low cost development due to the very shallow oil reservoir and close proximity to the major oil infrastructure of the Belridge Oil field which is a 1.25 billion barrel oil accumulation producing over 100,000 bopd," said Orchard executive director Steve Warrener.

"A developmental drilling program is currently being planned for both the Olig Potter and Diatomite sections which could see production rates ramp up over the coming months."