CISCO, Texas, Nov. 2, 2004 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd. (OTCBB:AUCAF) is excited to announce that events in the company's history have just occurred.
The company has acquired offshore Permit VIC/P60 covering 339,769 acres in the Bass Strait of Victoria Australia along with 3 other equal partners. This means ACOR's interest is a net 84,942 acres.
The Bass Strait has what we believe is the oil field with the highest average per well cumulative production in the world - three billion dollars worth of oil per well at today's price on Bloomberg on 60,000,000 BBLS/well. The name of the field is Halibut Oil Field which is located midway between VIC/60 on the south and VIC/P54 on the north. ACOR purchased an overriding royalty under VIC/P54. Apache Petroleum, the operator, has announced they will drill an offshore well on the Longtom structure starting November 2, 2004. Immediately following the drilling of this well, Apache will follow up by drilling Grayling Number 1 Exploration well to a depth of 2900 meters. The prospect has the potential to contain approximately 104 million bbls of oil. Apache is paying 94% of the costs to earn a 62.5% WI. Apache operates over 100 wells in offshore Western Australia. The permit owner estimates the field has the potential to contain mean gas reserves of 270 BCF of gas with an upside potential of over 500 BCF of gas.
Adjoining VIC/P60 is VIC/P45. It is reported that BHP-Billiton will start drilling before May 16, 2005 probably on the Anemone SE structure SE of the Archer well which has 11 pays, 4 oil and 7 gas with 1200 feet of net pay section.
The Kingfish Field begins 1-1/2 miles west of VIC/P45. It has produced 1.1 billion barrels from 41 wells or an average of 26,000,000 bbls per well. North of the Kingfish Oil Field is permit VIC/P53, which ACOR holds an ORRI. Cue Petroleum is exploring this area with 3-D Seismic Program. One and eight tenths miles east of VIC/P53 is the Halibut Oil Field. ACOR holds a .05% overriding royalty in VIC/P45, VIC/P53, and VIC/P54. The interest in VIC/P60 is 25% WI. ACOR's interests in Victoria go N-S thought the middle of some of the best production in the Bass Strait.
The new concession has an anticline with 400 feet of seismic closure. The anticline is an undrilled upper Latrobe prospect. The Halibut and Kingfish Oil Fields are completed in the upper Latrobe of Tertiary Age. The area is in deep water. A deep water drilling rig has just been moved in from Norway to drill wells west along the Coast, which will be very satisfactory for drilling this prospect. One well in the Halibut Oil Field has produced as much oil as 10,000 wells on the Bend arch between Cisco and Wichita Falls, Texas.
For additional information concerning AUCAF please contact our office at 254-442-2638.
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.