CISCO, Texas, Jan. 12, 2005 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd (herein called ACOR) (OTCBB:AUCAF) and our President jointly hold 1/4 interest in excess of 50 new gas wells in the new Park Cities Gas Field located in Kentucky. It requires a gas gathering system and gas processing plant in order to market the gas. The wells are paid for thanks to our President who paid cash for his interest in the wells and the contractor, Robert Thorpe who took Australian-Canadian Royalties Ltd. stock at a dollar a share when the bid price of the stock was considerably under a dollar a share.
According to the operator, the 5MMCFPD gas plant is expected to fund some time next week when Mr. Eric Prim representing the Holloman Corp. meets with the investment group to finalize details.
The investment group hired Production Meter & Testing out of Breckenridge, Texas to test 5 wells for 3 days. The test results came back very promising!
Test results: using various chokes from 24/64th to 16/64th.ACERO No.7: on a 24/64 tested at 492MCFPDPARSLEY No.6: on a 24/64 choke tested at 494MCFPDMcCOMBS No.3: on a 24/64 choke tested at 960MCFPDBEWLEY No.1: on a 24/64 choke tested at 1.013MMCFPDROYCE HOUCHIN No.2: had fluid in it and tested flat at 50MCFPD
They also tested the adjoining wells, while testing the 5 wells above and only one well was affected with 11No. of pressure drop.
ACOR has a 12.5% working interest in the Kentucky Gas Project.
Offshore Australia Bass Strait
PERMIT 60
ACOR and our President have paid their exploration money for the first year's seismic work on the 25% interest they each have. Seismic review is in progress with Mr. Roy Whiting, geophysicist at Holloman Corp., now working full time on the 339,000 acre offshore block.
ACOR has a 25% working interest in VIC/P60.
PERMIT 54
The GRAYLING No.1 is currently drilling at 8,220 feet with 600 feet to go to Total Depth. The well encountered two hydrocarbon bearing zones, one in the Latrobe and one in the Golden Beach. The nature of the hydrocarbons and the quality of the reservoir section will be evaluated through detailed log analysis and further wireline testing and sampling once the well has reached TD.
The Longtom-2 well flowed at a stabilized rate of 18-19 MMCF/per day of gas through a 1" choke over an 11 hour period with well head pressure at the end of the test at approximately 965 psi. The Longtom -2 successful test is a major discovery in the Gippsland Basin. It represents the first significant gas flow from the Emperor Formation. The majority of the Gippsland Basin wells have been completed in the upper Latrobe Formation.
In excess of 4 billion barrels of oil/condensate and 12 TCF gas reserves have been discovered in the Basin since exploration drilling began in 1964, with remaining reserves estimated at 600 million barrels of oil and 5 trillion cubic feet of gas.
ACOR holds a .05% overriding royalty interest in VIC/P54
PERMIT 53
Cue Energy is planning a 320 kmsq 3D seismic survey in the early part of 2005 to highlight the potential of Vic/P53, particularly in the area of the Veilfin-1 well which had oil and gas shows. Depth conversion work is anticipated to be enhanced through the use of the proposed new 3D seismic. Vic/P53 is considered prospective for oil and gas at the top Latrobe and also at deeper intra Latrobe levels. Vic/P53 is surrounded by the oil and gas producing fields held by Esso/BHP.
Vic/P53 is a complex block but, given its location, it is inherently prospective, provided depth conversion complexities can be addressed using new 3D seismic data. Importantly, there has not been a well drilled within the area of Vic/P53 during the last 20 years. Likewise, no dedicated 3D survey has yet been shot in the block, apart from surveys shot in adjacent acreage which peripherally covered the edges of Vic/P53. Over this period, technology and the ability to deal with the complexities of depth conversion have improved dramatically. This aspect, when taken with strategic geological location of Vic/P53, argues well for the development of top and intra Latrobe plays, once a high resolution 3D seismic survey has been undertaken.
ACOR holds a .05% overriding royalty interest in VIC/P53
PERMIT 45
The Kingfish Field begins 1-1/2 miles west of VIC/P45. The Kingfish Oil Field has produced in excess of 1.1 billion barrels of oil. Calculating at current crude oil prices of $US43.40 per barrel, this represents approximately $47.74 billion worth of production. BHP-Billiton is under contract to start drilling before May 16, 2005, probably on the Anemone SE structure SE of the Archer well, which has 11 pays, 4 oil and 7 gas with 1200 feet of net pay section.
ACOR holds a .05% overriding royalty interest in VIC/P45
Onshore South Australia Cooper/Eromanga Basin
PEL 115
Victoria Petroleum has discovered the Murta oil trend under ACOR's overriding royalty interest on PEL 115 from the drilling of the Ventura No.1 and Mirage No.1. Combined initial potential from these wells is approximately 850 barrels of oil per day.
Production testing on the MIRAGE No.1 commenced on January 10, 2005. The Almonta No.1 is expected to begin drilling in February and two more wells by May on PEL 115.
ACOR holds a .1% overriding royalty interest in PEL 115.
PEL 111
Victoria Petroleum is scheduled to drill the Catalina No.1 gas prospect in May 2005 with estimated reserves at 56 Billion cubic feet of gas.
ACOR holds a .1% overriding royalty interest in PEL 111.
MORE DRILLING IN 2005
Cooper Energy announces plans for initially drilling five (5) wells in 2005 on Petroleum Exploration Licenses 88 & 100 under which Australian-Canadian Oil Royalties Ltd. has overriding royalty interests and a working interest.
Cooper Energy has been extremely successful in their drilling program in South Australia bringing in large producers on the East and North sides of our PEL 112 ranging from Initial Potential of 500 barrels per day to 5,600 barrels per day and averaging about 2,000 barrels per day as Initial Potentials.
PEL 88
The KITSON No.1 on PEL 88 South Australia is scheduled for drilling in March 2005. Cooper Energy estimates potential reserves at 4,000,000 to 33,000,000 barrels of oil! The GEORDIE No.1 is estimated to begin drilling in Sept. 2005. Estimated potential reserves are at 1,700,000 barrels. The TRANSIT No.1 is scheduled for drilling in Dec. 2005. Estimated potential reserves are 1,700,000 barrels.
ACOR holds a large ORRI interest in PEL 88, a .3% overriding royalty interest.
PEL 100The YORK No.1 is scheduled for drilling July 2005. Estimated potential reserves are 4,400,000 barrels! The STRICKLAND No.1 on PEL 100 is scheduled for August 2005. Estimated potential reserves are approximately 2,000,000 barrels!
ACOR holds a 2% working interest and plans to pay 2% of drilling and completion costs. ACOR paid for its part of the seismic program on PEL 100.
AUCAF Stock
Our current Market Price on Jan. 10 is $1.05 a share Asked. Today 3,500 shares traded at $.55 a share and the Bid Price is $.40 a share.
Summary
ACOR management is very excited about all the activity that is happening with the companies vast assets and looks forward to the potential revenue that these holdings could bring in to the company.
Visit the company website for daily drilling reports 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.