ACOR Begins Drilling in Cooper Eromanga Basin
Australian-Canadian Oil Royalties Ltd. has spudded the Kitson-1 well, located in the Cooper Eromanga Basin in South Australia. The well is expected to take approximately 15 days to drill.
The Kitson prospect is a large fault closed structure that also has a robust seismically mapped four way dip closed component at the crest and as much as 50 km2 of fault bound closure provided by a reverse fault.
The prospect includes five reservoir horizons the Jurassic Namur, Birkhead, Hutton, Poolawanna and Triassic Tinchoo. The Kitson-1 well is located on the four way dip closed portion on the structure.
The Kitson structure has been identified on regional mapping for some time but historically it was regarded as being too far from the center of the Cooper Basin and migrating hydrocarbons. With recent successes at outlying fields such as Christies, Sellicks and Worrior, the nearby James, Cook and Inland oil fields, oil shows in the nearby Nulla-Nulla-1 (15km east) and Wyeerie-1 (20km to the northwest) wells and the new seismic in PEL88, this has raised the profile of Kitson and it is now viewed as a viable target.
The Kitson-1 well is located up-dip of the Potiron-1 and Araburg-1 wells that were drilled in the late 1980s. The Potiron-1 and Araburg-1 wells encountered hydrocarbon shows in the Birkhead, Hutton and Poolowanna formations -- thus demonstrating that the area has experienced the migration of hydrocarbons through the geological section.
As the Kitson-1 well has counter-regional dip working to fill the various reservoir formations, fault independent closure and evidence of having an older core structure this is expected to increase the chance of making a hydrocarbon discovery.
Quoting one of the investors in the well, "The Kitson-1 well will test hydrocarbons trapped by both the four way dip closed component and the fault closed portion. The Kitson Prospect was defined by seismic mapping conducted in 2004. Potential reserves for the four way dip closure range from approximately 0.9 million to 4.6 million barrels of recoverable oil, if oil is present. The larger fault closed structure has a potential recoverable oil reserve ranging from approximately 5 million barrels up to 42 million barrels, if oil is present."
ACOR owns a 3/10ths of 1% ORRI, the largest single ORRI position currently in the company.
PEL 112 UPDATE
ACOR management has discovered that its nearest producing field, the Tantanna Oil Field, has produced approximately 7,340,646 barrels of oil from twelve (12) wells, at today's crude prices that equals approximately $367 Million or $30 Million per well. At approximately $1 Million per well cost to drill and $30 Million per well average production, that's a fantastic 30 times return on your investment. See figures below:
7,340,646 bbls = $367 million $367,000,000 / 12 wells = $30,583,000 / per well average production Average production per well / cost of well = $30,583,000 / $1,000,000 = 30.58 times return on investment dollars
ACOR has officially contracted with Terrex Seismic to begin shooting approximately 155 kilometers of 2-D Seismic on PEL 112 and approximately 35 kilometers of 2-D seismic data on PEL 108.
The properties are located in the prolific Cooper/Eromanga Basin, Australia's best onshore producing Basin.
ACOR has also hired Andy McGee, a highly respected Geophysicist. A
crew of approximately 35 personnel will be working this spring and
summer to perform the shooting & interpreting of the 190 kilometers of
seismic on PEL 112 & 108.
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