The program will begin with the South Belridge 4-7 vertical well this week which will be drilled to a total depth of 1524 metres over seven days. It will focus on expansion of the oil-rich Diatomite section covering over 243m of hydrocarbon intervals in the area.

SB 4-7 is part of the first five wells in the drilling program testing the Diatomite sections where Orchard has had previous success. The wells will be drilled back-to-back over the coming months, before being completed and prepared for stimulation by hydraulic fracturing in multiple stages.

The company has successfully tested and completed the new approach in a multi-staged fracturing program on the SB 3-7 well.

The final well in the six well program will test the shallow gas sections found in the previous five wells. Depending on the results, the company may consider a separate gas development program.

Orchard is hoping to bring new production facilities for the South Belridge program online by year end and is in the process of finalising oil and gas sales agreements with customers.

The company also recently finalised a contract to drill 10 additional wells at South Belridge in January 2006.

Participants in the South Belridge joint venture are Orchard Petroleum Inc. (operator) 25% interest and Maxim TEP 75% interest.

Maxim will provide funding for the program to the value of $37 million.