PetroFrontier Corp (PFC)

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PFC wells mentioned - AUCAF.24 -ACOR Obtains Renewal For ATP 582, Covering 5.0 Million Acres In The South Georgina And Simpson Desert Basins In Queensland, Australia

Sep 25, 2012 8:30:00 AM
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CISCO, Texas, Sept. 25, 2012 /PRNewswire/ -- Australian-Canadian Oil Royalties Ltd. (OTCBB: AUCAF) ("ACOR" or "the Company") is pleased to announce that its wholly-owned subsidiary Cooper-Eromanga Oil Inc. ("CEO") has received a renewal from the Queensland Department of Natural Resources and Mines for Authority To Prospect Number 582 ("ATP 582").

(Logo: http://photos.prnewswire.com/prnh/20120301/DA62510LOGO)

ATP 582 covers more than 5.0 million acres in the South Georgina and Simpson Desert Basins in Queensland, Australia. The South Georgina Basin has recently received considerable industry attention with the drilling of the first horizontal multi-stage fracture stimulation wells in the Northern Territory. One of the wells to be tested is immediately offsetting the boundary of ATP 582. These wells are designed to test the Arthur Creek "Hot Shale," which has technical similarities to tight unconventional hydrocarbon reservoirs in the United States and Canada. The results of these wells are anticipated by the end of this year will assist in establishing the prospectivity and resource potential of ATP 582.

More than 20 wells have been drilled on, and in the vicinity of ATP 582 in both Queensland and the Northern Territory, which establish the regional configuration of the South Georgina Basin and the depositional trends of the formations within it. Mirrica-1, drilled on ATP-582 in 1980, encountered a much thicker Arthur Creek Formation, including a thicker "Hot Shale," than the original Owen-2 well, drilled in 1990, and currently being re-drilled immediately adjacent to ATP 582 on the Northern Territory portion of the basin. This overall basinward thickening of the Arthur Creek over ATP 582 is thought to substantially improve its hydrocarbon potential. ATP 582 is also basinward of the Ethabucka-1 well, drilled in 1974,which tested 200 mscf per day (approximately 30 barrels of oil equivalent per day) of dry gas from a shallower zone. This well was abandoned due to drilling problems before reaching the Arthur Creek shale and represents the only well, to date, to successfully recover hydrocarbons in the South Georgina Basin.

The renewal term is for a period of 4 years, expiring July 31, 2016. ACOR has initiated the design and planning for the first period seismic program, which it expects to acquire in the first and second quarters of 2013. The results of this seismic program will determine the locations of the first two wells, which the Company currently anticipates drilling in the third and fourth quarters of 2013.

We seek safe harbor.

For further information on ACOR, please visit our website at www.aussieoil.com, e-mail [e-mail] or call:

1-254-442-2638 (Office)

1-800-290-8342 (Toll Free in the United States)

Forward-looking statements

Certain of the information contained in this press release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may," "should," "anticipate," "expects," "seeks" and similar expressions.

Barrels of Oil Equivalent Disclaimer

Barrels of Oil Equivalent ("BOE") are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil (6 Mcf : 1 bbl). BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

SOURCE Australian-Canadian Oil Royalties Ltd.