Wilpinnie 4 Well Strikes Oil On PEL 115 On ACOR's ORRI
Cisco, TX - Australian-Canadian Oil Royalties Ltd. announced that the PEL 115 Joint Venture advises that the Wilpinnie 4 well has struck oil on ACOR's ORRI, the current operation was pulling out of the hole with Core #1 after cutting an approximately 29 foot core from 4,849 – 4,878 feet prior to running an open hole Drill Stem Test. Oil shows continued to be observed while drilling and coring and extend over the 69 feet interval from 4,744 – 4,878 feet in the mid Namur Sandstone.
The start of the oil show interval seen in Wilpinnie 4 is approximately 56 feet high to the same oil shows seen in Wilpinnie 3. The current operation was running open hole Drill Stem Test #1 over the interval 4,744 – 4,878 feet to test the oil shows observed while drilling and coring in the mid Namur Sandstone to date.
Wilpinnie 4 is being drilled approximately 656 feet northwest and up dip of the Wilpinnie 3 well which on an open hole drill stem test of the mid Namur sand interval from 4,855 - 4,901 feet measured depth flowed 45 degree API oil to surface on a one half inch choke at an initial rate of 785 barrels of oil per day.
Wilpinnie 3 lies in the northern portion of PPL 93 and was drilled in 1993. Santos Limited, the operator for the PPL 93 Joint Venture, is drilling Wilpinnie 4 to a total depth of 5,203 feet.
The Tomcat (Wilpinnie 4) Prospect as mapped by the PEL 115 JV covers an area of 1.1 square miles with 63% of the prospect present within the northern portion of PEL 115 and 37% present within the adjoining PPL 93. The Tomcat Prospect is interpreted from seismic data to have the potential to contain recoverable oil in the range of 3.6 million barrels to 5.7 million barrels, if oil is present.
The operator of PEL 115 interprets that Wilpinnie 3 was drilled close to the oil-water contact of the interpreted Tomcat Prospect closure. Wilpinnie 4 which has been sited to be up dip to Wilpinnie 3 could test a greater oil column than encountered in Wilpinnie 3, if the seismic interpretation of the Tomcat Prospect is valid.
The Tomcat Prospect is interpreted as a tilted fault block with a stratigraphic component with the crestal culmination at the mid Namur horizon within PEL 115 and up dip and .68 miles north of Wilpinnie 3.
About PEL 115
PEL 115 on ACOR's ORRI consists of 273,297 gross acres and is divided into six (6) separate tracts. PEL 115 surrounds the oil & gas producing fields at Dullingari, Toolachee, Strzelecki, Della, and Kidman with cumulative recoverable reserves of approximately 104 million barrels of oil and approximately 2.5 TCF of gas or approximately $12.6 Billion dollars using current market prices for crude oil and $US2.50 per mcf for gas.
The permit represents one of the lowest risk areas for exploration in the Cooper Basin. Initial studies of the available seismic data have identified several leads and prospects with the potential to contain commercial recoverable reserves of oil and gas, if oil and gas are present. The proximity to infrastructure suggests that the economic viability of any exploration success is assured.
A four well drilling program commenced in late August 2004 going through to mid December 2004. The first well, Hornet-1, defined by 3D seismic, encountering gas in the target Permian sands. Hornet-1 has been cased for production testing when a gas market has been identified.
Exploration drilling activity continued in the south-western part of PEL 115 with Ventura-1, where oil recoveries were made in the primary and secondary target sands, the Murta and Namur, with the Namur recovering oil at up to 352 barrels of oil per day.
Canberra-1 followed, testing a high risk but potentially high reward Permian sand stratigraphic gas trap, but hydrocarbons were not encountered.
The fourth well in the 2004 drilling program, Mirage-1, recovered oil from the Murta Formation on drill stem tests. PEL 115 Joint Venture commenced an Extended Production Test (EPT) in late April 2005 on Mirage-1 with a free flow rate of 274 barrels of oil per day.
During the year, the Mirage-1 and Ventura-1 wells in the South Australian Cooper Basin were put on long-term production, with production licenses being granted over both oil fields in August 2006. Average combined gross production from the Mirage/Ventura oil fields for the past year was at a combined rate of 328 barrels of oil per day. With the recent successful development drilling of Mirage-3 and Mirage-4 and fracture stimulation, we look forward to an increase in oil production from the Mirage Oil Field.
The interpreted recoverable oil reserve for the Mirage Oil Field using this information is a range of recoverable oil reserves from a mean of 1.3 million barrels up to a maximum of 3.6 million barrels, however; the interpretation of the 3D data set suggest that Mirage-1 could be part of a larger feature covering approximately 12 miles. Such an area has the possibility of containing up to approximately 23 million barrels of oil in place, subject to the presence of suitable Murta sand reservoir on ACOR's ORRI.
ACOR owns 10% of 1% ORRI under PEL 115
SOURCE: Australian-Canadian Oil Royalties Ltd.