ACOR
Announces Approximately 25 Wells Have Been Connected with
Atmos Natural Gas Gathering System on ACOR’s 10% Working
Interest in the Park City Kentucky Gas Field
CISCO, Texas--(BUSINESS
WIRE)-March 12, 2008-Australian-Canadian Oil Royalties
Ltd. (herein called ACOR) (OTCBB:AUCAF)
is pleased to announce that twenty five (25) out of thirty
four (34) of ACOR’s existing gas wells operated by
Resource and Energy Technologies Company (RETCO) are
currently being connected to a natural gas gathering
system owned by a unit of Atmos Energy Corporation and to
a gas processing facility, and operated by RETCO.
The gas plant is
completely finished. It is still in Oklahoma waiting to be
transported to the plant site in Kentucky. The multi-day
transport to Kentucky will begin near the end of this
month. The plant skids will be transported on 23 semi's.
Both of the gas plant towers - the 95' and the narrower
50' - have been delivered to the plant site and the lower
section of the larger tower has been set upright on its
pedestal.
The packing material has
also been placed inside. The foundations are being framed
and poured. Most of them are now complete. The electrical
grounding crew has finished burying the copper wire around
the perimeter of the plant.
Texas Gas has completed
the hot tap into their 8" high pressure gas line which
runs through the plant site. They have also delivered
their sales gas meter-run skid to the plant site.
After the plant arrives in
about three weeks, the fabricator will need between two
and four weeks to plumb all the different skids and plant
sections together, before turning on the switch, later
next month.
The first of the 34
well-head meter-run skids have arrived and have been
installed with the latest electronic meters and
telecommunications equipment, along with the perimeter
protection fencing. We have also set up two of the 95'
reception and relay towers, which will bring all the
well-head data to the plant site.
Click on link below to see
the photos of the gas plant towers and foundations being
poured
http://www.aussieoil.com/site/acor-map.htm.
The complete gathering
system running from 2" to 10" pipe has been purged of all
air and is now pressured up with gas. The Gas gathering
infrastructure consists of approximately 25 miles of
low-pressure, polyethylene pipeline to gather well-head
gas and deliver it to the RETCO operated HNNG-gas
processing plant. Natural gas liquids and nitrogen will be
removed from the gas before it is delivered to Texas Gas
Transmission for redelivery to consumers in the area. Gas
sales agreements are also in place with Atmos Energy
Marketing, LLC, a wholly owned subsidiary of Atmos Energy.
The JV Partner states that
the initial focus area in the Park City Gas Field
encompasses approximately 8,000 acres and has possible
estimated reserves from the New Albany Shale of
approximately 15 billion cubic feet (BCF) and possibly an
additional approximately 24 BCF from the Fort Payne
Limestone formation.
In March
2007, ACOR announced that The Company had signed a general
pooling agreement on the Park City Gas Field, located in
Kentucky. The pooling agreement gives ACOR a 10% working
interest in the pool under approximately 34 shut-in gas
wells.
In 2002,
ACOR made a significant change in its operations by
including domestic oil and gas exploration in its program.
ACOR entered into an Agreement with Resource and Energy
Technologies Company for the drilling and development of
oil and gas in the Park City Field Prospect in Edmonson
County, Kentucky. This field is located in the Highland
Rim Physiographic Province that extends over portions of
central Kentucky and middle Tennessee.
As of
April 5, 2004, a total of over 38 wells have been drilled
and paid for in Edmonson County, Kentucky. ACOR paid its
drilling costs with AUCAF restricted common stock based on
a value of $1.00 per share.
Because
of the lack of gas gathering pipelines in the area, it has
taken ACOR several years to get the project to this point.
It has been long known that this part of western Kentucky
contains significant shallow natural gas reserves from
several different formations, including the Ft. Payne
Limestone, New Albany Shale and Silurian/Devonian
carbonates.
In
January 2005, ACOR hired Production Meter & Testing
Company out of Breckenridge, Texas to test some of the
wells for 3 days on ACOR’s working interest in Kentucky.
Test
results: using various chokes from 24/64th to 16/64th.
PARSLEY
No.6 well: on a 24/64 choke tested at 494MCFPD
McCOMBS
No.3 well: on a 24/64 choke tested at 960MCFPD
ROYCE
HOUCHIN No.2 well: had fluid in it and tested flat at
50MCFPD
ACOR currently owns a 10% working
interest in the Park City Kentucky gas unit.*
*Other interests were
added to the pool which reduced ACOR’s percentage in the
gas pooling unit, but will increase the gas reserves in
the extended pooling agreement.
