Oil Shows Already Discovered As The Eleven Well Drilling Program Begins On ACOR's ORRI
Cisco, TX - Australian-Canadian Oil Royalties Ltd. announced that the JV partner of ATP 267 has begun its intensive eleven (11) well drilling program for 2007 on ACOR's ORRI with the spudding of Dilkera North 1 well on December 31st 2006.
The eleven (11) well drilling program is already off to a great start as oil shows were recorded in the Murta Member on the Dilkera North 1 well, and these shows will be evaluated by wireline logs. The Dilkera North 1 well is being drilled on a structural culmination to the north of the Dilkera oil field and is targeting oil in the Murta Member and the Birkhead Formation.
The Dilkera North 1 well was drilling ahead at approximately 3675 feet on January 3rd 2007. The eleven (11) well drilling campaign on ACOR's ORRI is designed to appraise the Birkhead oil pool discovered in the Muthero-3 well in December 2005 on the Muthero oil field where three appraisal wells will be drilled and one development well which will target the Murta Member and lower Birkhead in the vicinity of Muthero-3.
Also, three appraisal and two development wells will be drilled on the Thungo oil field targeting oil in the Murta Member. The Kamel-1 exploration well will be drilled on a structural culmination to the north of the Thungo oil field. The well is targeting oil in the Murta Member and the Birkhead Formation.
Typically, the wells are drilled in 6 to 10 days and connection of successful wells is targeted in 40 to 60 days. Successful wells will be completed and connected to existing oil production facilities which will be upgraded to handle the anticipated increased production volumes on ACOR's ORRI.
About ATP 267:
The western border of ATP 267 is located approximately 5 miles from the Jackson Oil Field. The Jackson Oil Field has reserves in excess of 40,000,000 barrels of good quality crude oil or approximately $2.2 Billion Dollars at current crude market prices.
Three wells were drilled on ATP 267 during the 2005 drilling program; Muthero-3, Winna-4 and Currambar-1. All three wells were successful on ACOR's ORRI. ATP 267, including Petroleum License (PL) 33, 50 & 51 consists of approximately 220,800 gross acres and is located in Queensland Australia in the prolific Cooper/Eromanga Basin.
The Muthero-3 appraisal well is located in the Petroleum Lease 51 on ACOR's ORRI. Muthero-3 was drilled to a total depth of 4692 feet. Oil shows were encountered in the Birkhead Formation and Murta Member during drilling. DST-1 flowed oil on final flow at 1030 BOPD through a 1/2" choke at 25 psi. Muthero-3 was cased and suspended as a future Birkhead oil producer. The Muthero-3 well commenced production at around 525 BOPD in February 2006.
The Winna-4 appraisal well reached a total depth of 4484 feet. The primary objective Murta Member reservoir of the Cooper-Eromanga Basin sequence was encountered as predicted with good oil shows. Winna-4 was cased and suspended as a future Murta oil producer.
The joint venture partners spudded the Currambar-1 exploration well in ATP 267P in the Cooper-Eromanga Basin of south west Queensland. The well, located some 2 miles southeast of the Dilkera-2 oil well, reached a total depth of 4554 feet. Moderate to fair oil shows were recorded in the Murta Member. The well was cased and suspended as a future Murta oil producer.
ACOR management is excited about the discoveries made in 2005 on ATP-267 and is very excited about the potential revenue from the additional eleven (11) new wells to be drilled this year. ACOR owns 17.15% of 1% ORRI under ATP 267 which include Petroleum License 33, 50, & 51.
SOURCE: Australian-Canadian Oil Royalties Ltd.