Last buy AUCAF .60 +.20 on oil news plus shattered .43 previous 52wk high on huge volume for it and 3.11mil in float w/13.76mil. total! Here's news today: Giant Oil Discoveries Continue Adjoining to ACOR's 13.83% Carried WI under PEL 112-The Callawonga-3 Well Strikes Oil & Flows 5,660 BOPD, Followed by the Callawonga-2 Well of 4,992 BOPD, & the Callawonga-1 Well of 2,400 BOPD
Wednesday October 3, 12:37 pm ET
CISCO, Texas--(BUSINESS WIRE)--Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF - News) is pleased to announce that the operator of PEL 92 advises that the Callawonga-3 well has been flow-tested through production tubing. The Callawonga-3 well was drilled to a total depth of 6,374 feet and intersected 16 feet of oil pay section in the Namur reservoir.
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The clean-up flow rate for the Namur reservoir in the Callawonga-3 well was 5,660 barrels of oil per day with no water through a 2" line with a wellhead flowing pressure of 500 psi.
Callawonga-3 is the second well in a three well appraisal/development drilling program to develop the Callawonga Oil Field. The development wells are targeting the Namur reservoir that is currently being produced from the Callawonga-1 discovery well.
The rig will now move to the Callawonga-4 location to spud.
About the Callawonga Oil Field
The Callawonga Oil Field is located on PEL 92 in the prolific Cooper/Eromanga Basin and adjoins ACOR's 13.83% working interest under PEL 112 to the North. The Callawonga-2 well will now be tied into the Callawonga facilities and is anticipated to contribute to production from the Callawonga Oil Field from October onwards.
The Callwonga-1 well was drilled in July 2006, the well encountered 26 feet of net oil pay in the Namur Sandstone and flowed oil on drill stem test at a rate of an initial potential of 2,400 bopd. The Callwonga-1 well has produced approximately 250,000 bbls of oil to date or approximately $17,500,000 at current crude oil prices.
On September 11, 2007 the Callawonga-2 flowed oil from the Namur Sandstone at an estimated rate of an initial potential of 4,992 barrels of oil per day through a 2" choke with 250 psi surface flowing pressure.
It is expected that Callawonga-2 and 3 will be tied into the production facilities and placed on production towards the end of October.
About PEL 112
ACOR has signed a farmin agreement for the oil & gas exploration of ACOR's PELs 108, 109, & 112, located in South Australia in the prolific Cooper/Eromanga Basin. The operator has agreed to drill and complete 3 wells in exchange for a 66.667% Working Interest in all 3 areas. The operator will carry ACOR for 13.83% W.I. in the 1st three wells.
After the 3rd well, ACOR will pay its part of any future exploration performed on the 3 areas. The exploration manager is working to try to secure a drilling rig and will make every attempt to drill the 1st two wells within 2007 on PEL 112, subject to rig availability.
PEL 112 covers approximately 818,904 gross acres, and has never been drilled (no dry holes). ACOR and partners have completed a new seismic survey on PELs 112 at a cost of approximately $1,100,000.
The new seismic survey has discovered two large seismograph highs as well as 24 smaller ones. The 2 large seismograph highs are called C-23 & C-26, which cover a combined area of approx. 5,534 acres with excellent closure.
ACOR and partners have invested approximately 6 years and several million dollars in PELs 112, 108, & 109. ACOR management is very excited to have negotiated a 3-well carried position over the 3 areas, which substantially reduces the Company's risk.
The 13.83% Carried Working Interest has potential to bring substantial revenue into the Company, should any or all of the three wells drilled prove to be commercial. ACOR's carried working interest in the 1st three wells will exclude ACOR from all exploration and completion costs.
The Closest Oil Field to PEL 112
ACOR management has discovered that its nearest producing field, the Tantanna Oil Field, has produced approximately 7,340,646 barrels of oil from twelve (12) wells, at today's crude prices that equals approximately $513 Million or $42 Million per well. The Seismic line 84-XAB shows a possible look-alike structure on ACOR's PEL 112 similar to the Tantana Oil Field.
ACOR owns a 13.83 % Carried WI through the first 3 wells under PELs 108, 109, & 112.
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.
Have a great night and I'm getting the game on...tuna
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