ACOR’s PEL 444, PEL 112 & PEL 111 are Located in an Oil
Boom in the Western Oil Rim of the Cooper/Eromanga Basin
in South Australia
Dear Shareholder,
ACOR is well positioned in the exciting new oil
producing trend in the western rim of the Cooper/Eromanga
Basin, which is Australia’s largest oil and gas
producing basin. ACOR has carried working interests and
overriding royalties under thousands of acres along this
western oil rim.
The Western Oil Rim is an attractive exploration target
for three reasons.
1. It is one of the few places where hydrocarbons from Cooper Basin
source rocks can migrate into traps in the overlying
Eromanga Basin. In most places, a cap rock at the
unconformity between the Cooper and Eromanga prevents
this happening, but along the western margin the cap
rock is faulted, eroded or otherwise missing.
2. The western margin is only lightly explored. Santos
made oil discoveries at Charo and Callabonna in the
early 1990s, but it left thousands of miles unexplored
because of its priority on gas exploration.
3.
The Permian source beds sub crop under the Jurassic
Reservoir beds with porosities up to 25% and
permeabilities up to 10,000 millidarcies.
Exploration in recent years has produced a series of oil
discoveries within the western oil rim. As of April
2010, approximately
23,630,870
barrels of oil has been produced in the western oil rim
or $US1,654,160,900 using $US70.00 per barrels crude oil
prices.
Important Notice:
There are 10
New Field Discoveries not reported in the 23,630,870
barrels of oil production figure.
Those new
oil fields are Snatcher, Warhawk, Marino Tigercat,
Tigershark, Wirraway, Marino, Chilton, Purlubie,
Purlubie South & Butlers.
Concession Adjoining
ACOR’s PEL 112 Draws Highest Guaranteed Bid in Acreage
Release
The South Australian Government recently announced
successful bidders on five new Petroleum Exploration
Licenses within the Cooper Basin.
The highest guaranteed bid was offered on Block CO2009-A
which directly abuts the northern borders of ACOR’s PEL
112 concession (see map). The winning bid requires
ACOR’s newest neighbor to drill 12 exploration wells and
shoot 650 square kilometers of seismic on the acquired
acreage at an estimated cost of approximately
$AU25,000,000.
"The highly competitive bidding reflects the petroleum
industry's continuing view that the South Australian
Cooper Basin represents a real asset in their
exploration portfolios... it clearly indicates their
perception of the potential for further oil and gas
discoveries...," stated Hon. Paul Holloway, South
Australia's Minister for Mineral Resources. "Success
rates for oil are high and discoveries can be
commercialized within months," Holloway continued. "The
country's exploration industry has been reshaped by the
turnover of Cooper Basin acreage since 1998 through a
number of 'Company-Making' discoveries... The CO2009
acreage release confirms that the Cooper Basin remains a
very attractive exploration address."
About PEL 111
Snatcher Oil Field Commenced 1st Oil
Production in January 2010.
The Snatcher Oil Field is situated on the Western Oil
Rim, with the Snatcher-1 and Snatcher-2 wells producing
oil from a channel system present within the Jurassic
Birkhead Formation.
The Snatcher-3 oil discovery will be placed on
production in 2010.
ACOR owns a 1/10th of 1% ORRI under PEL 111, which
includes the Snatcher Oil Field, covering approximately
292,819 gross acres.
About PEL 112 & PEL 444
In June, the operator of PEL 112 & PEL 444, released a
press release stating the results of an independent
petroleum study which increases the probable (P90)
reserves in ACOR’s PEL 112 & PEL 444, located in
Australia's Cooper/Eromanga Basin by 600%.
The study, received by the operator on June 12th
2009, analyzed only
10 of 45 drilling leads
and concluded undeveloped P90 and mean risked reserves
related to those leads were approximately 25,300,000
barrels of oil and approximately 31,600,000 million
barrels of oil, respectively.
The independent study was conducted by ISIS Petroleum
Consultants Pty. Ltd. of Australia, an internationally
recognized petroleum engineering firm. The reported
increase in reserves results, in largest part, from the
likely migration of oil past the Cooper Basin's Permian
zero edge resulting in the recognition of the Namur
Sandstone as the Company's primary reservoir.
The operator of PEL 112 & PEL 444 states that seismic
acquisition and a 5-well drilling program to begin
exploration of the leases will require expenditures in
excess of $11,000,000.
ACOR owns a 13.83% working interest under PEL 112 & PEL
444 and is 100% fully carried for its 13.83% working
interest in the next 2 wells drilled on either block.
ACOR will pay their proportionate part on any
exploration cost thereafter. PEL 112 and PEL 444
comprise of approximately 4,544 Sq. kilometers or
approximately 1.125 million gross acres.
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."
Summary:
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.
Visit our website at
www.aussieoil.com.
Disclaimer:
Except for historical information contained herein, the
statements released are forward-looking statements that
are made pursuant to the provision of the Private
Securities Litigation Reform Act of 1955.
Forward-looking statements involve known and unknown
risks and uncertainties that may cause the Company's
actual results in future periods to differ materially
from forecasted results. Such risks and uncertainties
include, but are not limited to, market conditions,
competitive factors, the ability to successfully
complete additional financings and other risks.
Contact:
Australian-Canadian Oil Royalties Ltd.
Investor Relations, 254-442-2638
acor@classicnet.net
