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The company told the ASX it was aiming for early production to take advantage of current high oil prices.
Orchard is currently involved in testing two discoveries – Jack Hamar in the South East Lost Hills area of the San Joaquin Basin and the Edge discovery in the Sacramento Basin.
In addition, Orchard said it was moving a fracture stimulation crew onto its South Belridge project to increase oil production from the field.
“All these projects have the potential to add significant amounts of oil and gas to Orchard’s growing production base,” the company said.
A “very active” 2006 drilling campaign, involving up to 20 wells, is also scheduled to start in June, according to Orchard.
The capital raising involves the placement of 7 million shares at A74c each to local and overseas institutions. E.L & C. Baillieu Stockbroking will organise the placement, which will comprise 3.51% of Orchard’s expanded share capital.
