CISCO, Texas, Nov. 11, 2004 (PRIMEZONE) -- Australian-Canadian Oil Royalties Ltd. (OTCBB:AUCAF) is excited to announce that Apache Corp. has spudded the Longtom-2 well in the offshore Gippsland Basin of Victoria in the Bass Strait.
Offshore Australia Well Longtom-2
Located under ACOR's ORRI on VIC/P54, the well is being drilled to further evaluate the gas sands that were encountered in the Longtom-1 and Longtom ST-1 wells drilled by BHP Petroleum in 1995, and to test the potential for deeper reservoirs which were not reached by these wells.
The original wells encountered a 1246 foot gross gas column in the Emperor Formation without reaching the base of the gas. The operator indicates the field has the potential to contain estimated gas reserves of 270 Bcf with an upside potential of over 500 Bcf of reserves. Longtom-2 will be immediately followed by the Grayling-1 exploration well. Grayling will be drilled to a depth of 9,514 feet. The prospect has the potential to contain estimated reserves of 104 million barrels in an oil case.
Onshore Australia Well Canberra-1A
Australian-Canadian Oil Royalties Ltd. (ACOR) is excited to announce that Victoria Petroleum has spudded the Canberra-1A located under PEL 115 in South Australia in the Cooper-Eromanga Basin. The Canberra-1A will test the Canberra Prospect which is interpreted to have the potential within Permian sands to contain up to 161 billion cubic feet of gas and 4 million barrels of oil, if oil and gas are present.
ACOR owns a 1/20th of 1% overriding royalty interest under VIC/P54 & a 1/10th of 1% overriding royalty interest under PEL 115 and has absolutely no exploration expense under these areas, but ACOR will share in the gross revenue.
ACOR acquires a 25% Offshore Working Interest
ACOR has acquired a 25% working interest in the offshore Permit VIC/P60 covering 339,769 acres in the Bass Strait of Victoria Australia. ACOR has already begun the year one (1) seismic expenditures on the block. VIC/P60 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 average well in the Halibut Oil Field has produced as much oil as 10,000 wells on the Bendarch between Cisco and Wichita Falls, Texas.
ACOR Offshore ORRI
Adjoining VIC/P60 is VIC/P45. The Kingfish Field begins 1-1/2 miles west of VIC/P45. The Kingfish Oil Field has produced in excess of 1.1 billion barrels of oil. Calculating at current crude oil prices of $US48.50 per barrel, this represents approximately $53.35 billion dollars worth of production.
ACOR owns an ORRI under VIC/P45 and 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.
ACOR holds a .05% overriding royalty located Offshore Australia in the Bass Strait under VIC/P45, VIC/P53, and VIC/P54.
ACOR's offshore ORRIs and working interests in the Gippsland Basin go North & South through the middle of some of the best production in the Bass Strait. In excess of 4 billion barrels of oil/condensate and 12 TCF gas reserves have been discovered in the Gippsland Basin since exploration drilling began in 1964, with remaining reserves estimated at 600 million barrels of oil and 5 trillion cubic feet of gas.
ACOR management is extremely excited about the company's vast assets, the drilling activity, and the potential it has to bring in revenue to the company.
New ACOR Website
Visit our new website to see more information on all the properties just mentioned above at: www.aussieoil.com .
About Australian-Canadian Oil Royalties Ltd.
ACOR's principal assets consist of 14,926,346 gross surface acres of overriding royalty interest and 8,900,776 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin & 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.
Annual Meeting
ACOR's Annual Meeting is scheduled for 10:00 a.m. Friday, November 12th in Cisco, Texas. Please call 254-442-2638 if you plan to attend.
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.