ACOR Spuds Mulberry-8

Australian-Canadian Oil Royalties (ACOR) says that the operator of ATP-299 has reported that the third well of the 51 planned wells has begun with the spudding of Mulberry-8 on ACOR's overriding royalty interest (ORRI) in the Cooper/Eromanga Basin. The target is the Birkhead Formation.

The total depth of the Mulberry-8 is 1432 meters. The location of Mulberry-8 is approximately 830 meters south/southeast of the Mulberry-1 well and 940 meters south/southwest of the Mulberry-2 well. Monday morning, the Mulberry-8 well had reached 225 meters in 10 5/8-inch surface hole and was running 8 5/8-inch casing.

Mulberry-1 was drilled in 2004 and is producing 48.5 degrees API oil at a rate of approximately 600 barrels of oil per day. The 51 wells are designed to achieve additional oil production and to test the extent of the oil pool in the Birkhead 11-77 sand discovered in the Mulberry-1 well. The Tintaburra Oil Field contains significant proved undeveloped oil reserves and exploration up side.

ACOR notes that the largest program of continuous oil drilling ever undertaken in the south/west Queensland section of the Cooper/Eromanga Basin is already off to a promising start, with the successful completion of the first two wells (Mulberry-6 & Mulberry-7) of the 51 wells to be drilled. The Mulberry-6 & Mulberry-7 was successful in increasing the boundaries of the Mulberry Oil Field and have been cased as future Birkhead oil producers. The wells reportedly encountered good oil shows in mud logs in the Birkhead Formation.

The Mulberry Field is part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299. The Tintaburra Oil Field is estimated to contain approximately 84 million barrels of proved plus probable oil in place.