CISCO, Texas, Nov. 12, 2003 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd. (Nasdaq:AUCAF), stock symbol "AUCAF" on the NASDAQ Bulletin Board is pleased to announce the drilling of 17 commercial oil and gas wells in the second and third quarters of 2003. Additional wells are currently being drilled. These wells are located in the Park City Gas Field in Edmonson County, Kentucky. AUCAF has a 1/8th working interest in these wells. The operator intends to drill a total of 50 wells by December 31, 2003.
The Company is currently negotiating with pipeline companies and investors to participate in building the gathering system and a state of art gas plant. Oil is currently being trucked to the refinery.
AUCAF has substantial working interests and overriding royalty interests in Australia, both onshore and offshore. BHP Billiton, Australia's largest public oil company is currently moving a 20,000-foot depth semi-submersible rig to AUCAF's VIC/P45. After completing $US 20,000,000 in 3-D seismic, the rig is to arrive in November 2003 to begin operations. An independent engineering firm, IMI, estimates reserves for VIC/P45 at 350,000,000 barrels of oil and 4 trillion cubic feet of gas. AUCAF has a 0.05% gross overriding royalty on VIC/P45.
On November 3, 2003 the Company appointed James L. Lemmon, J.D. as General Manager. Mr. Lemmon (Jimmy) has both a banking and legal background as well as experience in the oil and gas industry. His duties include shareholder relations, SEC filings, general corporate responsibilities including obtaining investment capital for AUCAF.
The Company's principal business is purchasing, holding, developing and sale of royalty and working interests of good oil and gas leases and concessions.