CISCO, Texas, Feb. 12, 2004 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd. (OTCBB:AUCAF) is very excited to announce that it acquired a 2% Carried Working Interest under PEL 100 in the Cooper-Eromanga Basin, South Australia! The Operator for this 146,659-Acre Permit is Cooper Energy, which has made 4 outstanding discoveries in the past year, all adjoining ACOR's holdings. The permit was awarded on March 6, 2003. Cooper Energy is to earn 33.33% through the drilling of one well by March 6, 2005, but may earn 43.33% if a well is commenced prior to March 31, 2004. On Cooper Energy's website, planned drilling is reported between now and March 2004.
Keleary Field Adjoins PEL 100 -- Proven Presence!
The presence of oil has been proven both in the western portion of the block and along the eastern block boundary where the Telopea and Keleary fields are located.
The adjoining Keleary Field, which is only 3/4ths of a mile East of PEL 100, has produced 1,545,151 bbls through December 31, 2002. A twin seismograph Prospect is located just west of the Keleary Field.
The Carried Working Interest is through the first well. Santos built a 110 km long pipeline from the Moomba Gas Plant to the Keleary Field, which runs through PEL 100.
Tarragon #1
Five wells, all in the southern third of PEL 100, have been drilled, resulting in one discovery. The Tarragon #1 flowed 500 and 1,580 bbls oil/day from the Tinchoo and Hutton formations respectively. Additionally, about 2 meters of pay is interpreted in the Birkhead in this well. Hydrocarbon shows were also noted in Apacharie #1, Hamlyn #1 and Fulcia #1. Angelica #1 had no hydrocarbon shows.
A seismic review of all existing data by Cooper Energy has indicated that noteworthy velocity anomalies (highs) are present, which explain the reason for failure of several of the wells failing to find hydrocarbons. The interpretation has also shown that the Walkillie #1 well was drilled at least 13 m downdip to the west of the crest of the structure. As the Walkillie structure lies only about 3 km south of the Telopea oilfield, an updip well, named Acacia Grove #1, is planned for drilling on PEL 100.
New Oil Wells
Our first oil revenue check has been received on our Kentucky production. The operator reports 4 new oil wells in production in Kentucky and 2 more wells to start in production next week. Australian Canadian Oil Royalties has a 1/8th working interest in all six of these wells and our President, Mr. Ely Sakhai, also has 1/8th interest under these oil wells.
New Gathering System
ACOR has 1/8th working interest under approximately thirty-two new gas wells. Negotiations are underway to build ninety miles of gathering system. The Park City Gas Field is now six miles wide east and west and three miles north and south.
New Gas Processing Plant
A new gas processing plant is to be built for the Park City Gas Field. ACOR has been active in helping to raise the money so we can get a market for the gas, but we will not own an interest in this highly profitable gas plant. When the thirty-two new gas wells, in which ACOR owns working interests, go on line, we expect ACOR to become a profitable gas producing company. The gas plant will remove and market higher hydrocarbons such as distillates, which must be removed before the Pipeline Company will buy the gas as well as removing the nitrogen gas. Holloman Corporation of Odessa Texas are currently designing the Gas Plant and gathering system. Watch for an announcement that the plant has been funded!
New Wells in Queensland on our Overriding RoyaltiesUnder 10,812,400 Surface Acres
On ATP299, Santos has drilled three additional wells, one of which has been completed as an oil well, Talgeberry #8, in the Talgeberry Oil Field. The #1 Talgeberry, some years ago, came in with all IP of 3904 bbls of oil per day. ACOR holds a 5.75% of 1% overriding royalty under ATP299.
Offshore Operations
ACOR holds overriding royalties under VIC Permits 45 and 53, in the State of Victoria Australia. We received a verbal report that BHP Billiton plans to drill the Anemone Southeast Structure next. It is recommended in Victoria Department of Mines Report VIMP 61 as the best structure to drill next on Permit 45 with estimated oil reserves of 32 million barrels of oil in place and 29.2 billion cubic feet of recoverable gas. It is located 5 kilometers east of Archer Propsect, which has 4 oil pays and 7 gas pays with 1,282 feet of net pay zones. Both of these locations could be produced together from one platform.
ACOR plans to participate in an application for a new concession joining other oil companies and its President, Mr. Ely Sakhai, in a bid for a new Australian offshore area. The estimated reserves on the area are reported to have two billion dollars worth of oil and gas.
STOCK CERTIFICATES
If you hold your ACOR stock in street name (brokerage firm name), please ask your broker to transfer and ship a certificate to you. This will greatly reduce any attempt by market makers or brokers to short ACOR stock from Depository Trust Company and/or CEDE. Short sales reduce our stock price when we are gaining income and stock value for our shareholders. The Amendment to NASD Rule 3370 becomes effective February 20, 2004. Questions concerning this rule change should be addressed to Gary L. Gobsholle, Associate General Counsel, Office of General Counsel, NASD Regulatory Policy & Oversight at (202) 728-8104.
Certificated ownership by each shareholder will protect shareholder stock value as the Company continues to increase assets and revenue.
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.