ACOR to Begin Multi-Well Drilling Program on ATP 299
Australian-Canadian Oil Royalties reports that the operator of ATP-299 has announced a massive drilling program on ACOR's overriding royalty interest, which will commence in January 2006 and operate continuously until at least July 2006. It will comprise 49 firm wells and 2 contingent wells. The wells will range from development and appraisal wells to near field exploration (NFE) wells. Initial drilling will commence with appraisal and development wells at the Mulberry Field and move on to NFE targets and other producing oil fields along the Endeavour-Mulberry-Talgeberry trend. The program will commence with one rig but an additional rig will be added to the program around the end of March, 2006.
About ATP 299
The Tintaburra Block contains about 84 million barrels of proved plus probable oil in place. The 2006 program is planned to develop the Mulberry Field, commence increased oil recovery from other producing fields and potentially recover an additional 20 million barrels of oil from the Block. The groundwork for this program has been laid since 2002 with an ongoing investment in reservoir studies and 3D seismic surveys, followed by the new field discovery at Mulberry in early 2004, and successful development drilling at that field in April 2005.
The main focus of the program will be centered around the Mulberry field, with 45 wells planned for the area, taking advantage of prevailing high oil prices.
ACOR owns .05.75% of 1% ORRI under ATP-299
In the late 1970's, Robert Kamon, a Petroleum Engineer was President of another public oil company with assets in Australia. Robert had noticed the East-West oil migration path in the Cooper/Eromanga Basin and stepped out approximately 92 miles East from the nearest oil & gas producing field (The Jackson Field) and leased what would be considered at the time a rank wildcat area, called ATP 299. The 1st well drilled on ATP 299 was called the Tintaburra # 1 and it came in with an initial potential of approximately 1835 barrels of oil per day from two zones. Successful well after well was drilled and completed on ATP 299 and a large oil company bought ATP 299 for several hundred million dollars. As stated earlier in this press release, ATP 299 has estimated reserves of approximately 84 million barrels of oil and the operator is still drilling on the area with 51 wells planned to be drilled in 2006. When Robert sold controlling interest in the old public company that he was President of, it was trading at approximately 180 times the original price from the time at which Robert bought controlling interest.
ACOR owns a 41.5% working interest under PEL 112 & after 40 years, Robert Kamon is still actively exploring in the Cooper/Eromanga Basin. Robert is a director of ACOR and one of the largest shareholders in the company. ACOR is just stepping out approximately 23 miles West from the Worrior producing field and has leased 818,904 gross acres of what is currently considered a wildcat area, called PEL 112.
One of our best prospects C26, identified from the $1,100,000 new seismic data is approximately 4.25 times the size of the Worrior Oil Field that has approximately $37,750,000 per well per year pipeline runs.
37,750,000 per well per year x 41.5% ACOR's working interest = $15,666,250 per well per year of gross pipeline runs.
More About ACOR's PEL 112
The purpose is to obtain production like that being developed on the 3 adjoining areas. Based on $59 per barrel oil, the Worrior Field on adjoining PEL 93 is making $37,120,833 per well per year gross pipeline runs. With an estimated per well cost of $1,500,000, this means the Warrior Field pays out a number of times per well per year.
East-C26 is located on the Northeastern part of PEL 112. East-C26 is the largest structure mapped from the new seismic program, and it is the closest structure on PEL 112 to the Worrior production. East-C26 covers 3,459 acres inside the closure.
The East C26 structure occupies an area that is approximately 4 1/4 times the size of the Worrior structure.
The diagonally offsetting lease to the northeast of PEL 112 has the nearest producing field - the Tantanna Field, which has made 7,500,000 barrels and still has 8 wells producing. Production was discovered in 1988, and current production is $8,400 per day.
The average well in the Tantanna field has paid out many times the drilling and completion costs. The Tantanna #1 is 12 miles northwest of PEL 112.
IMPORTANT NOTE: A seismic line, 84-XAB, runs through the Sturt Field north of the Tantanna Field and all the way across PEL 112. The structure on the seismic line in the Sturt Field is similar to the 2,075-acre seismograph high East-C23, and that both the producing field and the seismograph high East-C23 have the Permian rocks subcropping under the Jurassic to serve as sourcebeds.
On the adjoining area to the north is PEL 92, which has the Christies Field producing 1,544 bbls/day pipeline runs. The operator to the Christies Field has announced 2 additional wells to be drilled in the near future. 1,544 bbls/day = 563,560 bbls/year = 563,560 x 59 oil = $33,250,040/year gross production. This is extremely good onshore production.
ACOR used the same geophysicist, Andy McGee, and the same seismic contractor, Terrex Seismic, who discovered the new production on adjoining PEL 92 and PEL 93. We have just completed 155-km of new seismic on PEL 112. The report covers the 30 located seismic highs, with a table rating each of the seismograph highs on PEL 112 (located under section PEL 112, in the back of the Regional and Prospect Interpretation Report by Andy McGee.) The seismic work is of extremely good quality.
ACOR owns 41.5% working interest under PEL 112
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