Esri supports Oracle 10g with the 10g client and Oracle 11g with the 11g client,
using Oracle's client drivers. While 10g clients may be able to connect to 11g
servers, I doubt you'll always have a fault-free path.
I have an environment where the Oracle SDE database has been upgraded to 11g from 10g, but the desktop clients remained at 10g due to the huge number of mxd layers that would need to be converted to 11g in the connection parameters. I have started writing python code to convert these layers in a batch mode. While performing this testing I noticed that even though a test computer has no 10g Oracle Client software but it does have 11g Oracle Client software installed, the connections to SDE still work.
As such, it would appear from the surface that this big conversion job is not necessary. My question would then be what functionality would I be missing if I leave the Oracle 10g client connections (--> EDIT: Probably the ArcGIS connection files) in place, even though the desktop computers would have the 11g Oracle Client software installed on them?
This is my understanding of what is present:
sde: oracle10g <-> Oracle 11g client <-> Oracle 11g Server
The "sde: oracle10g" invokes Oracle's 10g libraries (oci.dll), for which Oracle
provides reverse compatibility in the 11g client. This is not an Esri-tested and
certified configuration. It may work, but it cannot take advantage of any 11g
capabilities present in the sdeora11gsrvr101 DLL.