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

Christies-4 Well DST #2 - 653 BOPD Adjoins ACOR's Largest Working Interest PEL 112 to the North

Posted on: Monday, 27 March 2006, 12:00 CST

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator on the adjoining area to the north of ACOR's PEL 112 advises that the Christies-4 well will be cased and suspended after encountering oil pay in the Hutton and Namur Sandstone. DST 1 was a misrun, and the results of DST 2 conducted on March 24th 2006 were a initial potential of 653 BOPD. Christies-4 was drilled to appraise the south eastern extent of the Birkhead/Hutton oil pool discovered in July 2003. It is the first of two Christie's wells in this program.

South Australia's Cooper/Eromanga Basin is exploding with new drilling activity, rewarding investors with some of the most profitable production in the area & ACOR's Largest Working Interest Holding Is In The Middle Of It!

12 new wells adjoining PEL 112 to the North, East & West have been slated for drilling in 2006 and the first 2 of the 11 wells are successful.

Production and Drilling Adjoining North of PEL 112

The adjoining production is multiple pay with wells averaging a reported $33,000,000.00 a year gross on the adjoining block to the north of PEL 112. Efforts to increase this yearly revenue stream are already underway, with the completion of the Christies-4 well with an initial potential of 653 barrels of oil per day. Immediately following the Christies-4 will be the Christies-5 well, then the Silver Sands-1 in April. To be followed in May, with the Sellicks-2 & Sellicks-3 and the Dalray-1. The operator has also announced plans to drill 4 more wells North of ACOR's PEL 112, the names are to be announced at a later date.

Production and Drilling Adjoining East of PEL 112

The adjoining production is multiple pay with 3 wells averaging a reported $75,000,000.00 a year on the adjoining block to the east of PEL 112. Efforts to increase this massive yearly revenue stream are already underway, with the spudding of the Worrior-4 well on March 5th. The Worrior-4 has oil shows recorded in the McKinlay, Birkhead & Pando Formations and gas shows in the Patchawarra Formation and will be completed as an oil producer.

Seismic and Drilling Adjoining West of PEL 112

A local Australian Oil company has entered into a farm-in agreement with a newly listed ASX public oil company. The new public oil company will earn an interest in PELA 71 for funding a total $2.2 million of exploration expenditure. The PELA 71 permit is located in the South Australian sector of the Cooper/Eromanga Basins and adjoins ACOR's PEL 112 to the West.

In PELA 71, the new operator expects to focus on the area around the Mulapula-1 well, drilled in 1986 by Delhi and Santos, which recovered oil on test from the Namur Formation prior to the plugging and failure of the testing equipment. The test was not repeated because the accumulation was deemed to be too small at a time of much lower oil prices.

The new operator's evaluation of the prospect has indicated a potential 5m oil column in the Mulapula-1 well, with significant up-dip potential, which will be further evaluated by modern seismic acquisition technology prior to drilling. Additional, potentially larger structures along trend will also be detailed by modern seismic, followed soon after by prospect drilling.

ACOR management is very excited about this news as it is further proof of oil migration running west thru PEL 112. We already have excellent proof of oil migration to the North & East of ACOR's PEL 112 borders, with the adjoining production averaging a reported 3,448 BOPD on the adjoining block to the east of PEL 112 and wells averaging a reported 1500 BOPD on the adjoining block to the north of PEL 112. The new well to be drilled west of PEL 112 name is to be announced at a later date.

All the wells are approximately 6,000 feet deep and cost around $1.5 million dollars each to drill and complete.

ACOR management is currently busy picking the new drilling location on PEL 112 from the new $1,100,000 seismic data and getting bids from drilling contractors.

ACOR owns 41.5% WI under PEL's 108, 109, & 112.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,293,450 gross surface acres of overriding royalty interest and 8,900,776 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 interest and overriding royalty interest 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