CISCO, Texas, July 26, 2004 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd. (OTCBB:AUCAF) (herein called ACOR) is excited to announce the following news: ACOR has purchased a 1/10th of 1% overriding royalty interest (ORRI) under PEL 111 & PEL 115, located in South Australia in the prolific Cooper/Eromanga Basin. The concessions are all part of a giant area that was held for almost 40 years by Santos/Exxon. The Government forced Santos/Exxon to give up this area in 1998.
Petroleum Exploration License (PEL) 115 consists of 1,106 sq kms that surround the major Toolachee, Dullangari and the Della gas fields with cumulative estimated recoverable reserves of 1.4 trillion cubic feet of gas and 31 million barrels of oil. Some 31 oil and gas prospects and leads have been defined on 2D and 3D seismic within PEL 115. All areas of the PEL 115 permit have good access to existing oil and gas pipelines and production infrastructure. Three wells, including the Almonta Prospect, are scheduled to be drilled on PEL 115 by the end of 2004.
Impress Ventures NL, a working interest partner in PEL 111 and PEL 115, states the following:
"The Hornet Prospect, a robust 3D controlled feature in the center of Permit 115, 8 km to the Northeast of the giant Toolachee gas field with reserves estimated at 1 Trillion cubic feet of gas. The Hornet Prospect has significant upside gas reserves potential if the stratigrafic component of the target Permian Patchawarra Formation traps hydrocarbons. The upside recoverable gas potential is in excess of 25 billion cubic feet (BCF) of gas while the four-way closure has potential for 11 BCF. The next well to be drilled immediately following the Hornet well is expected to be the Ventura Prospect, a large four-way closed feature to the Southwest of the Narcoonowie oil field with a potential to hold recoverable reserves of up to nine (9) million barrels of oil and 58 billion cubic feet of gas. Drilling is expecting to commence in October 2004 on PEL 111 with the Catalina Prospect located 8 km Northeast of the Fly Lake oil & gas field. The Catalina Prospect is a low risk closed feature with the potential to contain recoverable reserves of 25 BCF of gas and four (4) million barrels of oil."
ACOR also holds a 2% working interest under PEL 100 and is currently participating in a seismic program on this area. Australian-Canadian Oil Royalties Ltd. is extremely excited about the opportunity these tremendous ORRI areas possibly hold.
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.