ACOR Says Reserve Estimates on VIC/P60 Larger Than Originally Thought
Australian-Canadian Oil Royalties Ltd. says that the estimated possible reserves for the A-1 lead on ACOR's VIC/P60 has increased to approximately 9.2 times the original estimate. The average porosity for the Gippsland Basin wells is between 10% and 27%. One (1%) percent was originally used for the possible estimated reserve calculations on the A-1 Lead. The new calculation uses 19%, which is the correct average between 10% & 27%. Using 19% porosity and a market price $US60.00 per barrel oil, ACOR estimates that the A-1 lead could possibly contain approximately 77,771,244 barrels of oil or $US4,666,274,644.
VIC/P60 covers 339,769 acres and is located in the prolific offshore Gippsland Basin. The A-1 lead is only one of six leads identified. The A-1 lead is approximately 4.97 miles long and 1.24 miles wide with a seismic bright spot anomalie rated good to excellent. The seismic bright spot is 108' thick and 820' horizontal by 20,500' perpendicular wide behind a fault on the flank of the anticline. ACOR has traced the beds to the nearest oil and gas fields after processing 5,000 +/- seismic lines.
The Bass Strait part of the Gippsland Basin has near surface channels filled with limestone with a different velocity from the surrounding beds. Professors Malcolm Wallace and Gary Holdgate have released a report that not only described the velocity problem within the Seaspray Group but also gave a formula that when applied fixes the issues with false leads and the uplifting of structures. Mr. Roy Whiting, a geophysicist, using the Kingdom Seismic Software developed a seismic program which corrects velocities to get rid of this problem. Roy tried it out successfully on the nearest producing fields and seismic over production and applied it to the 2-D seismic on Permit 60. The big structure did not have any bright spots over the crest, but on the flank behind a fault trap discovered a spectacular bright and large anomalie.
We think that this seismic bright spot anomalie may produce like the Fortescue Field or the Cobia Field on the south flank and west flanks of the Halibut anticline.
The Halibut Field is just 2 permits North of VIC/P60 and has produced 60,000,000 bbls. per well to date. This amounts to $3,600,000,000 per well, if the oil were valued at today's price. On the west slope of the anticline, the fault trap forms the Fortescue Field, which has made 9,285,740 bbls. per well to date, or $557,144,400 per well, if the oil were valued at today's price. The fault trap on the side of the anticline on Permit 60 is a comparable situation to the Fortescue Field.
About The Gippsland Basin:
In excess of 4 billion barrels of oil/condensate and 12 TCF gas reserves have been discovered in the Basin since exploration drilling began in 1964, with remaining reserves estimated at 600 million barrels of oil and 5 trillion cubic feet of gas. Current production of the basin is around 140,000 barrels per day of crude and 570 million cubic feet per day of gas. At peak rates, the Gippsland Basin can deliver more than 1,000 million cubic feet a day.
ACOR is excited about our new calculations on VIC/P60. ACOR management is now working full time to locate an oil company and/or investor(s) to take a look at the six new anticlines and a fault trap on the flank of an anticline with 1,100 feet of closure, with an outstanding bright spot anomaly indicating oil.
Australian-Canadian Oil Royalties Ltd. owns a 25% Working Interest
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