ACOR: South Australia Drilling Program Reaches Milestone
Australian-Canadian Oil Royalties Ltd. (ACOR) said that its JV partner of ATP-299 has announced that the 70-well drilling program is now half completed with 36 wells drilled, of which 30 have been cased as future oil producers or water injectors and only 6 wells have been plugged and abandoned.
The Tintaburra drilling program on ACOR's ORRI is the largest continuous oil development and exploration drilling program ever undertaken in SW Queensland with three (3) modern rigs drilling and casing wells at around seven (7) days per well.
As previously announced in ACOR's July 27th press release, due to the continued success of the Tintaburra drilling program on ACOR's ORRI, planning has commenced to add around 20 additional wells to the current program. The current 51 well program has been revised down by 1 well to 50 wells but with the addition of 20 wells the program is expected to total 70 wells.
The 20 additional wells announced will include 6 development wells, 12 delineation wells, and 2 near field exploration wells, principally to be drilled at the Endeavour and Mulberry fields.
This week's update on ACOR's ORRI under ATP-299 includes the successful drilling of two new oil wells Endeavour 10 and Talgeberry 10.
Rig PDI-724 completed drilling the Endeavour 10 development well and a core was cut over the reservoir section. Endeavour 10 encountered approximately 33 feet of net oil pay in the Birkhead reservoir and has been cased and suspended as a future oil production well. The rig was then released to the Reliance 1 well location where current operations are preparing to set the 8 5/8" surface casing.
Rig PDI-735 spudded Talgeberry 10 on July 30th. The well encountered a total of 23 feet of net oil pay, and has been cased and suspended as an oil production well. The rig was then released to the Talgeberry 11 well location where it is currently drilling.
Rig PDI-721 drilled Whynott 1 well located approximately 3 kilometers east of Minni-Ritchi 1. Whynott 1 encountered oil shows in the Westbourne Formation and did not encounter any significant shows in the Birkhead Formation. Production tests carried out on the Westbourne Formation failed to recover any oil. The well is currently being plugged and abandoned.
At the halfway point, the 70 Well Drilling Program on ACOR's ORRI has generated a number of notable results:
- Extended the Mulberry Oil Field over a 1.8 mile trend
- Encountered up to 49 feet of net oil pay in several wells at the Endeavour Oil Field.
The most successful wells encountered so far in the targeted drilling pay zone (Birkhead) were at locations from the Endeavour Oil Field in the north and south to the Mulberry Oil Field and the Talgeberry Oil Fields.
About The Tintaburra Oil Field:
Mulberry 1 was drilled in 2004 and is producing oil at a rate of approximately 600 barrels of oil per day. The 70 wells to be drilled in 2006 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 Mulberry-Gimboola-Endeavour Field is part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299 and is estimated to contain around 84 million barrels of proved plus probable oil in place or approximately $5,036,640,000, at current market prices.
ACOR owns .0575 of 1% ORRI under ATP-299.
The JV partner of ATP-299 reports that planning for 2007 is already underway. The 2007 drilling program on ACOR's ORRI will be dependent on results through 2006, but may involve an additional 50 wells.
About Australian-Canadian Oil Royalties Ltd.:
ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,440,116 gross surface acres of overriding royalty interest and 8,561,007 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin and Offshore Australia in the Gippsland Basin in the Bass Strait.
ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board Exchange under the trading symbol "AUCAF."
Australia is a "hot spot" for oil & gas exploration and ACOR is positioned for possible "Company-Maker" discoveries. ACOR's working interests and overriding royalty interests are located offshore & onshore in the best producing basins.
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