Australian-Canadian Oil Royalties Ltd. (ACOR) reported that the operator states that the drilling roads should be completed by February 25 thus allowing the drilling rig to move to the first of 2 drilling locations.
The operator has secured the Hunt Drilling Rig and the rig is officially in the operator's name. The rig is sitting idle, while the road construction crews repair the roads damaged by pervious heavy rains. While the rig sits idle, the operator is obligated to pay a day rate of several thousand dollars per day for the rig to remain 100% available to the operator. Obviously, the operator is very motivated to get the rig to the drilling site and begin drilling as soon as possible.
The operator is also thinking positive about a possible successful oil well being discovered as they have already purchased the casing equipment needed to complete a successful oil well.
The first well to be drilled on PEL 112 is called the Pecos-1 and will be drilled on either the C-23 or C-26 structures. The C-26 structure covers approximately 3,459 acres and has approximately 338 foot of closure. The C-23 structure covers approximately 2070 acres and has approximately 300 foot of closure.
The drilling of the Pecos-1 well represents one of ACOR's possible biggest revenue generating opportunities.
The closest oil field to PEL 112 is the Tantana Oil Field. The Seismic line 85-XAB shows a possible look-alike structure on ACOR's PEL 112 similar to the Tantana Oil Field. The Tantana Oil Field has produced approximately 7,340,646 barrels of oil from twelve (12) wells, at today's crude prices that equals approximately $682 Million Dollars or approximately $57 Million per well.
The C-23 & C-26 structures are equal to or bigger than the Tantana structure.
ACOR owns a 13.83% Carried W.I. through the first 3 wells under PELs 108, 109, & 112.
The Operator of PEL 112 has agreed to drill and complete three exploratory wells in the northern section of PEL 112. All the wells are approximately 6,000 feet deep and cost around $2.5 million dollars each to drill and complete.
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