CISCO, Texas, March 17, 2004 (PRIMEZONE) -- The following release is being issued by Australian-Canadian Oil Royalties Ltd.:
"Australian-Canadian Oil Royalties Ltd. (OTCBB:AUCAF) is pleased to announce that a contract to fund the gas plant in Kentucky was signed on Friday, March 12, 2004. The original 25 miles of gathering system is to be built by Holloman Corporation through the operator, Resource & Energy Technologies Company.
"Forty-five wells have been drilled out of a 50-well contract. All but one was successful in finding hydrocarbons, chiefly gas. The plant will be a cryogenic plant to separate liquid hydrocarbons and excess nitrogen from the gas so that the pipeline company will buy the gas. ACOR has ownership only in the production. ACOR has a 12 1/2% Working Interest in the 45 new wells in Kentucky, and our President has a 12 1/2% Working Interest in the same 45 wells. We traded our stock at $1.00 per share of restricted stock for our part of drilling and completing the wells, and our President paid cash for his part. This should provide substantial revenue for our Company.
"We are currently logging the next Dennison Well, which is making a sizeable amount of gas and the well drilled through a separate oil section. This well is located in the NW part of the Park City Gas Field."
AUSTRALIA
"ACOR is joining with several industry partners in applying for an area covering 641,238 acres with Estimated Potential Reserves of two billion dollars.
"Drilling has been announced for PEL 100 in which we hold a 2% Working Interest carried through the first well. The area is next to the Keleary Field. The Keleary No. 2 came in with an IP of 6,000 bbls of oil/day, and Santos built a 140 kilometer oil pipeline, which passes through PEL 100, to Moomba.
"We are working on a farmout deal on 818,904 acre PEL 112 for exploration and drilling. ACOR holds 50% Working Interest and our President holds 50% Working Interest
"This is an exciting time for ACOR! If you need any information on AUCAF please contact Investor Relations at (254) 442-2638 or 1-800-290-8342. Our e-mail address is acor@classicnet.net. You may access our website at www.acorltd.com."
NOTE TO EDITORS: Regarding "Estimated Potential Gross Revenue" in the subheadline -- Cash flow gross revenue is projected at full capacity (50 wells) to be $2,761/day upon completion of the gathering system at $5.55/MCF gas. An additional 50 wells are being drilled by an independent party on the acreage.
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.