We have two JIRA instances with different schemas on the Oracle 11g DB server.
Is it suggested to use the same database server with different schemas?.
One JIRA instances running JIRA 5.1.6 and other running JIRA 7.3.8.
It's not a problem to have multiple instances of Atlassian tools on one physical DB server. Make sure that each application connects to the DB with its own user, and make sure that user only has access to the DB instance that it is supposed to. This is true regardless of DB technology.
Unfortunately, Oracle doesn't completely hide its table names from users that do not have access to the instance, and this can cause problems with Atlassian applications. Many applications have tables with the same name. Check this article for some details. There is a link to a bug at the bottom of the page that has a workaround that you will likely need to do.
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