CISCO, Texas, July 28, 2004 (PRIMEZONE) -- Australian Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) announces the following news: ACOR has just purchased a .05% ORRI under VIC/P54 located in the prolific Gippsland basin. The operator is to be Apache Energy Ltd. (NYSE: APA). Apache is a well-known operator in offshore Western Australia, operating approximately 143 offshore wells in the past 5 years.
This is Apache Energy's first move into the Gippsland Basin and VIC/P54 is Apache's first choice. Nexus Energy has farmed out a 62.5% interest in its Gippsland Basin VIC/P54 permit to Apache Energy. Apache will fund 94% of estimated costs to undertake a two well drilling program (including a Longtom appraisal well and an exploration well). Upon execution of the farmin agreement it is understood that a drilling rig will be secured for possible drilling this year. The concession has proven reserves from a previous well. The Longtom 1 was drilled in the 1980s, with gas reserves estimates at 87 to 482 BCF of gas.
ACOR is pleased to have a similar situation on their ORRI under VIC/P45 with BHP/BILLITON, a $53 Billion Dollar Oil Company paying 100% of the exploration cost to explore for oil & gas. BHP/BILLITON is under contract to drill a well on VIC/P45 by May 2005.
ACOR owns an overriding royalty interest in the Gippsland Basin under VIC/P54, VIC/P45 & VIC/P53 and has absolutely no exploration expense under these offshore blocks, but ACOR will share in the revenue.
MORE ACOR ACTIVITIES IN THE GIPPSLAND BASIN:
ACOR has also applied for two oil and gas concessions Offshore Victoria Australia V03-3 and V03-4. The Government placed estimated oil & gas reserves on the 301,469 acre tract of V03-3 at 350 billion cubic feet of gas and three million barrels of condensate in the Angler Structure, which would gross approximately $US 2 Billion at the current market price. V03-4 covers 339,769 acres and contains a very large undrilled structure with over 400' of closure. Four oil structures and 5 leads have been currently identified on V03-4. If one or both concessions are granted, ACOR would have a 25% working interest along with three other industry partners, who each own a 25% interest.
ACOR will continue to maximize its efforts to increase shareholder value. ACOR management feels that the 7,568,607.2 acres of 100% net revenue working interest + 11,290,800 acres under which ACOR holds ORRI provides the key to tremendous growth potential for the company.
If you need any information on ACOR please contact Roger Lee Autrey/Investor Relations at (512)784-7828. You may access our website at http://www.acorltd.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.