• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

$50+ Million Dollar / 70 Well Program - The Largest Continuous Onshore Drilling Program in SW Queensland Australia Strikes Oil on Three (3) More Wells on ACOR's ORRI Under ATP-299

Posted on: Tuesday, 29 August 2006, 09:00 CDT

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) reports that the JV partner of ATP-299 has announced the successful drilling of Talgeberry 11, Talgeberry 14, and Cranstoun 3. All three wells will be cased as future oil production wells.

Rig PDI-735 spudded Talgeberry 11 on August 5th. The well encountered a total of 20 feet of net oil pay in the Westbourne, Adori and Birkhead formations. This well has been cased and suspended as an oil production well.

Rig PDI-735 was then released to the Talgeberry 14 well location. Drilling at Talgeberry 14 encountered oil shows in several zones and wireline log evaluation indicates 13 feet of net oil pay in the mid Birkhead reservoir. The well is currently being cased and suspended as a future oil production well.

Rig PDI-724 spudded the Reliance 1 well on August 8th. During drilling a wet mid Birkhead reservoir was encountered. Reservoir quality was deemed suitable for future water injection/production and the well was cased and suspended as a future water injection/production well.

Rig PDI-724 spudded Cranstoun 3 on August 16th. Cranstoun 3 encountered 10 feet of net pay in the Birkhead Formation. Cranstoun 3 is approximately 1,300 feet southeast of Cranstoun 1 and extends the field area to the southeast.

Current operations on ACOR's ATP-299 ORRI

Rig PDI-724 was released to the Cranstoun 4 well which spudded on August 22nd. The surface casing is currently being pressure tested and forward operations are to drill ahead in 7 7/8" hole.

Rig PDI-735 is currently drilling the Talgeberry 15 well located 2,297 feet north northwest of Talgeberry 5. Operations at Talgeberry 15 are currently pressure testing the surface casing and forward operations will drill ahead in 7 7/8" hole.

About The Tintaburra Oil Field:

The 70 well Tintaburra drilling program on ACOR's ORRI is the largest continuous oil development and exploration drilling program ever undertaken in SW Queensland with two (2) modern rigs drilling and casing wells at around seven (7) days per well. The JV partner of ATP-299 reports that planning for 2007 is already underway. The 2007 drilling program on ACOR's ORRI will be dependent on results through 2006, but may involve an additional 50 wells.

Mulberry 1 was drilled in 2004 and is producing oil at a rate of approximately 600 barrels of oil per day. The 70 wells to be drilled in 2006 are designed to achieve additional oil production and to test the extent of the oil pool in the Birkhead 11-77 sand discovered in the Mulberry 1 well.

The Mulberry-Gimboola-Endeavour Field is part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299 and is estimated to contain around 84 million barrels of proved plus probable oil in place or approximately $5,036,640,000, at current market prices.

ACOR owns .0575 of 1% ORRI under ATP-299.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,440,116 gross surface acres of overriding royalty interest and 8,561,007 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin and Offshore Australia in the Gippsland Basin in the Bass Strait.

ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board Exchange under the trading symbol "AUCAF."

Summary:

Australia is a "hot spot" for oil & gas exploration and ACOR is positioned for possible "Company-Maker" discoveries. ACOR's working interests and overriding royalty interests are located offshore & onshore in the best producing basins.

Visit our website at www.aussieoil.com.

Disclaimer:

Except for historical information contained herein, the statements released are forward-looking statements that are made pursuant to the provision of the Private Securities Litigation Reform Act of 1955. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

Source: Business Wire

More News in this Category