Kentucky: The 2 - 4 MMCFPD Gas Plant Has Funded!
South Australia: Approx. 500 BOPD oil production online by Mid-March!
Bass Strait: VIC/P54 Longtom-2 / Grayling-1A Is this a major new
gas discovery?
Australia 2005 Drilling Schedule: Approx. Ten (10) more wells to
drill on ACOR's ORRI
CISCO, Texas, Feb. 2, 2005 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to make the following announcements.
Kentucky:
The 2-4 MMCFPD Gas Plant has Funded!
ACOR management visited yesterday by phone with Mark Stevenson, President of Holloman Corporation (Odessa, Texas) and is pleased to announce the gas plant has funded. Construction is to begin immediately, depending on weather conditions. The plant is expected to go online in approximately five to six months. ACOR management is extremely excited about the funding of the plant and the potential revenue stream this could generate for the company. ACOR owns 12.5% working interest in the Kentucky gas field with interest in excess of 50 wells.
South Australia:
PEL 115
Approx. 500 BOPD by March / Est. 2.8 Million bbls oil
The Mirage-1 well is planned to produce conservatively at 300 barrels of oil per day on free flow although flow rates of up to 400 barrels of oil per day are indicated as possible from the initial "clean up" production data over the perforated 16 meter interval from 1,320 meter to 1,336 meters. The interpreted recoverable oil reserves for the Mirage Oil Field using this information is a range of recoverable oil reserves from a mean of 1.3 million barrels up to a maximum of 2.3 million barrels.
The Ventura-1 well flowed clean 54 degree API oil at rate of 84 barrels of oil per day on a 1/2 inch choke during the "clean up" production test phase from an interpreted net pay of 2 meters over the perforated oil column interval of 1,365 meters to 1,376 meters in the McKinlay/Namur. The interpreted recoverable oil reserves for the McKinlay/Namur formation of the Ventura Oil Field using this information is a range from a mean recoverable reserve of 220,000 barrels of oil up to a maximum of 460,000 barrels of oil.
For the Mirage and Ventura oil fields, a cumulative maximum potential of up to 2.8 million barrels of recoverable oil has been mapped from the current data with initial cumulative oil production of 500 barrels of oil per day budgeted for these first two wells.
ACOR is excited about the vast potential this concession holds for its shareholders. ACOR holds a .1% overriding royalty interest in PEL 115.
Offshore Australia:
VIC/P54
Grayling-1A
ACOR is pleased to announce that wire-line logging has confirmed three gas columns in the Grayling-1A well. The gross gas columns interpreted from pressure measurement and sampling are as follows:
1. Intra Latrobe: 2,069 - 2,077 meters measured depth 2. Golden Beach 1: 2,571 to 2,617 meters measured depth 3. Golden Beach 2: 2,614 to 2,638 meters measured depth
The operator says the well has confirmed the viability of the Golden Beach reservoirs as an exploration target in Vic/P54.
"Given its proximity to Longtom, gas at the Grayling location may provide additional reserves for a future development in Vic/P54," the company said.
Future operations on the well include further logging to correlate seismic to the formations encountered in the well.
Longtom-2
The testing of the Longtom-2 discovery is underway after the partners detailed a coring program. On December 6, 2004, 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 operator said spot permeability's had been obtained by injecting air into points along the core's axis to determine comparative permeability's at various points along the core. The operator said the initial visual inspection and spot permeability's were encouraging in terms of the likely flow potential of the reservoir sections in the Longtom-2 core.
Given the importance of Longtom to the company, the operator was independently remapping the field to determine the likely range of recoverable gas volumes and conducting other engineering studies as part of a program focused on rapidly appraising and commercially developing the discovery.
If the Longtom coring program is successful, this will be a major discovery in the Gippsland Basin as 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.
2005 Drilling Schedule: Ten (10) Wells planned
Offshore Australia
PERMIT 45 1 Well
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. The operator is BHP-Billiton and 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
South Australia
PEL 115 3 Wells
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 1 Well
The Catalina No.1 gas prospect is expected to begin in May 2005 with estimated reserves at 56 Billion cubic feet of gas. ACOR holds a .1% overriding royalty interest in PEL 111.
PEL 88 3 Wells
The Kitson -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 -1 is estimated to begin drilling in Sept. 2005. Estimated potential reserves are at 1,700,000 barrels.
The Transit -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 100 2 Wells
The York -1 is scheduled for drilling July 2005. Estimated potential reserves are 4,400,000 barrels!
The Strickland -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.
More ACOR working interest holdings:
PERMIT 60
ACOR holds a 1/4 interest in Victoria Offshore Permit 60. The other partners are Holloman Corp. of Odessa, Texas which has a million and one half dollars a week income, our President, Ely Sakhai, and Robert Thorpe. Holloman Corp. is the operator. Both ACOR and Sakhai have sent their checks to Holloman Corp. for the first year's seismic work. Mr. Roy Whiting, an expert Geophysicist is now working full time on the reinterpretation. ACOR purchased the KINGDOM Seismic Program at a cost of approximately U.S. $21,000 for 2-D & 3-D seismic reinterpretation and delivered it to Mr. Whiting to use specifically for Permit 60.
ACOR has a 25% working interest in VIC/P60.
South Australia:
PEL 112
After witnessing the phenomenal exploration success rate of the South Australian "new IPO explorers" overall exploration success rate of 51% in the Cooper/Eromanga Basin.
It has been seriously discussed by management that ACOR, along with its President should drill on PEL 112. If approved, ACOR/Sakhai would fund 100% of the year 2 & 3 seismic and drilling expenditures on PEL 112.
Cooper Energy has been extremely successful in their drilling program in South Australia bringing in large producers on the adjoining 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.
A discovery like this on PEL 112 with ACOR's 50% WI would be a "company-maker".
ACOR/Sakhai each has a 50% working interest in PEL 112.
PEL 108 & 109
Several companies have expressed an interest in exploring on these blocks. No formal agreements have been made yet, but ACOR is considering its options on these valuable oil & gas concessions in South Australia's hottest drilling area with a 51% drilling success.
ACOR/Sakahi each has a 50% working interest each in PEL 108 & 109.
AUCAF Stock
Our current Market Price on Jan. 31 is $.65 a share with a $.55 a share Bid Price and the Ask Price is $1.10 a share.
Summary
ACOR management is very excited about all the activity that is happening with the company's vast assets and looks forward to the potential revenue that these holdings could bring in to the company.
"The future looks so bright at Australian - Canadian Oil Royalties Ltd."
Visit the company website for daily drilling reports at http://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.