AUCAF) Australian-Canadian Oil Royalties Ltd. (herein called
ACOR) (OTCBB: is pleased to announce that the operator for the
PEL 115 Joint Venture advises that the rig is drilling ahead in 8 1/2
inch hole to 1,833 meters following the running of Drill Stem Test No.
1 in response to oil shows observed in the sands of the Murta
Formation. Oil Shows were observed in the Murta Formation over the 14
meter interval from 1,317 to 1,331 meters as observed from cuttings
fluorescence. An open hole Drill Stem Test No. 1 was carried out over
the interval 1,312 to 1,325 meters.
A PEL 115 joint venture partners states the following: "We are
encouraged by the oil shows and test results from the Upper Murta
section in Lightning-1. The Murta section has been tested in the Upper
part of the reservoir and the test results from this section are
considered to be positive. The Murta reservoir section and hydrocarbon
shows continue below the tested interval and the reservoir has been
confirmed as the same gross thickness of fifteen meters as that
encountered in the Mirage wells. These results support the model that
the Murta reservoir contains oil over the Greater Mirage area the
exploitation and development potential of which will be evaluated
following the Jindivik 1 exploration well."
Lightning-1 Still Drilling -- Going Deeper!
Lightning-1 having successfully tested the Greater Mirage Murta
oil pool concept of a potential 23 million barrels of oil in place or
approximately $1.6 Billion Dollars (using current market prices) over
the Mirage-Lightning area will now test the potential of the deeper
Permian Patchawarra section with the interpreted potential to contain
a approximately 130 billion cubic feet of gas or 18 million barrels of
oil, if oil and gas is present. The recovery of oil cut mud from sands
of the Patchawarra Formation in Plotosus-1; three kilometers to the
northeast and down dip of Lightning-1 provide encouragement for the
possible presence of oil in the Permian target of the Lightning
Prospect.
Up dip gas shows in the previously drilled Burruna-1 in basement
overlain by the sealing Murteree shale, the seal for the Patchawarra
Formation in the adjacent major Permian oil and gas fields 10
kilometers to the north provides further encouragement for the Permian
hydrocarbon potential at Lightning-1. Burruna-1 lies two kilometers to
the southwest of the Lightning-1 well location.
Continued exploration success in the deeper Permian section, if
oil, would prove up a new significant Permian oil resource in the
southern part of the ACOR's ORRI under PEL 115. If exploration success
proves up Permian gas, this will be commercially significant as
Lightning-1 is 400 meters from the open access Moomba to Sydney gas
pipe line, thus ensuring ready access to the Sydney gas market.
Lightning-1 is to be drilled to a total depth of 2007 meters in 14
days from the start of drilling on April 7, 2006.
About PEL 115:
PEL 115 is located onshore South Australia in the prolific
Cooper/Eromanga Basin, the operator has completed the first phase of
appraisal/development activity of the Mirage-1 discovery by drilling
Mirage-2, Mirage-3 and Mirage-4 on ACOR's ORRI. Each of the three
wells drilled was successful in encountering hydrocarbons in the same
Murta Formation which is currently producing at Mirage-1.
The Mirage-2, Mirage-3 and Mirage-4 wells have all been prepared
for completion and when facility construction in the field is finished
the wells will be production tested to determine the optimum producing
wells for tie in to the facilities. This activity is expected to be
complete by mid June 2006.
PEL 115 on ACOR's ORRI consists of approximately 273,297 gross
acres and is divided into six (6) separate tracts. PEL 115 surrounds
the oil & gas producing fields at Dullingari, Toolachee, Strzelecki,
Della, and Kidman with cumulative recoverable reserves of
approximately 104 million barrels of oil and approximately 2.5 TCF of
gas or approximately $12.6 Billion dollars using $US62.00 per barrel
for crude oil and $US2.50 per mcf for gas.
About The Mirage Oil Field
Mirage-1 was discovered in 2004 and began oil production in
January 2005. The Mirage-1 well produces approximately 400 BOPD from
the Murta Formation and has produced over 37,000 barrels of oil to
date. Mirage-2 was spudded in Feb. 06 and is being completed as a
Murta Formation oil well. Mirage-2 is currently shut-in pending the
arrival of a swabbing unit to swab the well in for production testing.
The Mirage-3 well spudded in March 06 and will be completed as a
Murta oil producer after having successfully completed Drill Stem Test
(DST) No. 1 at an estimated flow rate of 324 barrels of oil per day.
Mirage-4 confirms the extension of the Mirage oil field and will be
completed as a Murta oil producer.
If the production testing of Mirage-2, Mirage-3, Mirage-4 &
Lightning-1 on the Mirage Oil Field is successful, as we hope it will
be, we should see an increase in production from the current 400
barrels of oil per day from the Mirage-1 to a possible target of
approximately 1,000 +/- barrels of oil per day. Any increase in oil
production from the Mirage Oil Field would be timely in this current
time of high oil prices.
ACOR owns a 1/10th of 1 % ORRI under PEL 115.
About Australian-Canadian Oil Royalties Ltd.:
ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT.
ACOR's principal assets consist of 15,440,116 gross surface acres of
overriding royalty interest and 8,561,007 gross acres of working
interests, located Onshore Australia in the Cooper-Eromanga Basin and
Offshore Australia in the Gippsland Basin in the Bass Strait.
ACOR is a publicly traded oil company trading on the NASDAQ OTC
Bulletin Board Exchange under the trading symbol "AUCAF."
Summary:
Australia is a "hot spot" for oil & gas exploration and ACOR is
positioned for possible "Company-Maker" discoveries. ACOR's working
interest and overriding royalty interest are located offshore &
onshore in the best producing basins.
Visit our website 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.
KEYWORD: NORTH AMERICA AUSTRALIA/OCEANIA TEXAS AUSTRALIA UNITED STATES
INDUSTRY KEYWORD: ENERGY OIL/GAS NATURAL RESOURCES MINING/MINERALS PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Australian-Canadian Oil Royalties Ltd.
CONTACT INFORMATION:
Australian-Canadian Oil Royalties Ltd.
Roger Autrey, 512-784-7828
rla@austin.rr.com
A True Wise Person Realizes How Much They DON’T Know, Rather Than How Much They DO..
