Contract Signed To Sell 350 BCF Of Gas Under ACOR's ORRI VIC/P54
Cisco, TX - Australian-Canadian Oil Royalties Ltd. (ACOR) announced that the operator announced an agreement for the toll processing and sale of up to approximately 350 BCF of gas over 10 years with major Australian oil and gas exploration and production company Santos Limited. Under the terms of the agreement Santos has agreed to process raw gas from the Longtom field located in Bass Strait through its existing Patricia Baleen facilities near Orbost in Victoria, and then purchase the sales quality gas. The Longtom field is located on the offshore Australian block, VIC/P54 located in the prolific Gippsland Basin. VIC/P54 consist of 155,676 gross acres.
The agreement is conditional on the successful completion of the Longtom #3 appraisal well and the operator is confident that this will be achieved. Drilling of this well is scheduled to commence in May 2006. If the appraisal is successful, first gas is scheduled to be supplied from the project from June 1, 2008.
The company anticipates that Longtom will prove to be a substantial resource capable of delivering significant long term cash flow and value for ACOR. The gas from the Longtom gas field will be processed through the nearby Santos owned Patricia Baleen gas processing facilities located on the south coast near Orbost in Victoria. Processing the gas at Patricia Baleen will considerably reduce the operator's field development costs. It also has the additional benefit of utilizing existing infrastructure thereby reducing project technical risk and environmental impact.
ACOR owns a 1/20th of 1% ORRI.
More ACOR Assets in the Gippsland Basin
VIC/P60
ACOR also owns a 25% WI under Permit 60 located in the Bass Strait in Offshore Victoria and covers approximately 339,000 acres. Our company along with Holloman Corporation have conduced a detailed re-interpretation of the 2-D seismic resulting in the identification of a structure that, if productive, has the potential to contain mean reserves with a value of US$500,000,000, at today's hydrocarbon prices and before deduction of expenses. Robert Kamon of ACOR and Eric Prim, VP of Holloman Corporation, are leaving to travel to Australia to meet with the Department of Natural Resources & Environment to present the seismic report and discuss future development which includes a $US2,000,000 3-D seismic survey over the 6 structures located in the 2-D seismic re-interpretation.
ACOR owns a 25% working interest.
VIC/P45
The Kingfish Field begins 1-1/2 miles west of VIC/P45. The Kingfish Oil Field has produced in excess of 1.1 billion barrels of oil. Calculating at current crude oil prices of $US43.40 per barrel, this represents approximately $47.74 billion worth of production. The WI partner has announced the location for the next well to be drilled on VIC/P45. The location is called, the Scampi Prospect. The Scampi Prospect is based on stacked sands at the Top Latrobe level, with further stacked pay potential mapped down to a four-way dip closure at Top Golden Beach level. Scampi is considered by the operator to be a relatively low-risk play with an interpreted well-defined structural closure, the potential for high quality reservoirs and proximity to proven hydrocarbon charge. The primary target depth for Scampi is about 2700m.
The prospect has the potential to contain mean reserves of 34 million barrels of oil, if hydrocarbons are present at the Scampi prospect. There is further potential in the various deeper zones of this prospect. Both porosity and permeability at the Scampi location are assessed to be favorable, as evidenced by the same zones penetrated in the nearby oil discovery well, Archer-1, located to the immediate west, also in VIC/P45.
SOURCE: Australian-Canadian Oil Royalties Ltd.