AUCAF -- Muthero 7 Well Strikes Oil on Muthero Oil Field on ACOR's ORRI Inspired by the Muthero 3 Oil Discovery with Approx. IP 1030 BOPD
Tuesday February 20, 9:11 am ET
CISCO, Texas--(BUSINESS WIRE)--Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF - News) is pleased to announce that the JV partner of ATP 267 advises that the Muthero 7 well in southwest Queensland Australia has been cased and suspended as a future Murta oil producer on ACOR's ORRI.
The Muthero 7 well spudded on February 8th and was drilled to a Total Depth of 3,759 feet. Oil shows were recorded in the Murta Member and the well was cased and suspended as a successful oil well.
More Drilling on ACOR's ORRI
The Muthero 4 well spudded on February 13th and is to be drilled to a total depth of 4,698 feet.
The Muthero 4 well is the 2nd of four (4) wells planned to be drilled on the Muthero oil field and is designed to appraise the Murta zone and Birkhead oil pool discovered in the Muthero 3 well in December 2005 on ACOR's ORRI.
The Muthero 3 well was drilled to a total depth of 4692 feet. Oil shows were encountered in the Birkhead Formation and Murta Member during drilling. DST-1 flowed oil on final flow at 1030 BOPD through a 1/2" choke at 25 psi. The Muthero 3 well commenced production at around 525 BOPD in February 2006 on ACOR's ORRI.
100% Success Ratio - 1st five (5) Wells out of eleven (11) Strike Oil
The eleven (11) well drilling program on ATP 267 began on December 31st 2006 with the spudding of the Dilkera North 1 well. The Thungo 9 well was the 2nd well, it spudded on January 9th 2007. The 3rd well was the Thungo 10 well, it spudded on January 15, 2007. The 4th well was the Thungo 13 well, it spudded on January 21st, 2007. The 5th well was the Muthero 7 well, it spudded on February 8th, 2007.
All five (5) wells were cased and suspended as future Murta oil producers on ACOR's ORRI.
The wells are drilled in 6 to 10 days and connection of successful wells is targeted in 40 to 60 days. The successful wells will be completed and connected to existing oil production facilities, which will be upgraded to handle the anticipated increased production volumes on ACOR's ORRI.
About ATP 267:
ATP 267, including Petroleum License (PL) 33, 50 & 51 consists of approximately 220,800 gross acres and is located in Queensland Australia in the prolific Cooper/Eromanga Basin. The western border of ATP 267 is located approximately 5 miles from the Jackson Oil Field. The Jackson Oil Field is Australia's 2nd largest onshore oil field and has reserves in excess of 40,000,000 barrels of good quality crude oil or approximately $2.2 Billion Dollars at current crude market prices.
Three wells were drilled on ATP 267 during the 2005 drilling program; Muthero 3, Winna 4 and Currambar 1. All three wells were successful on ACOR's ORRI.
ACOR management is excited about the discoveries made in 2005 on ATP 267 and is very excited about the 100% successful beginning of this eleven (11) well drilling program and the potential revenue that could be generated for the company.
ACOR owns 17.15% of 1% ORRI under ATP 267 which include Petroleum License 33, 50, & 51.
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 interests and overriding royalty interests 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.
Contact:
Australian-Canadian Oil Royalties Ltd.
Investor Relations, 254-442-2638
acor@classicnet.net
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Source: Australian-Canadian Oil Royalties Ltd.
