Woollybutt-4H Well Adjoining ACOR's ORRI To Increase Production To Approx. 14,000 BOPD
Cisco, TX - Australian-Canadian Oil Royalties Ltd. is pleased to announce that a major expansion is about to commence with the offshore development drilling of the Woollybutt-4 well of the Southern Lobe which will result in the production rate increasing to at least 14,000 barrels of oil per day early in 2008.
The Woollybutt oil field adjoins ACOR's ORRI under WA-373 to the south and is located in the prolific Carnarvon Basin in Western Australia.
The contracted semisubmersible Songa Venus drilling rig has begun a sidetrack operation on the Woollybutt-4 well in the permit on the Barrow Sub-basin offshore Western Australia as part of the plan to expand production from the oil field, according to a joint venture partner.
The rig has re-entered the previously drilled Woollybutt-4 well and is drilling out the cement plugs prior to commencing the Woollybutt-4H sidetrack.
Woollybutt-4H will sidetrack from the Woollybutt-4 well and will be drilled and completed as a horizontal well in the Top Barrow Sandstones, which contains similar oil to the Northern Lobe of the Woollybutt field.
After completing the Woollybutt-4H well, the rig will move on to drill the Woollybutt-6 appraisal well. The Woollybutt-6 well will test if there is more oil between Woollybutt-3 and Woollybutt-5.
If Woollybutt-6 is successful, total oil production could possibly reach approx. 20,000 bbls oil per day or approx. $1,600,000 per day at current crude oil prices. The completion of Woollybutt-4 and Woollybutt-6 are expected to add about 10 million barrels of oil reserves to the already producing field.
About the Woollybutt Oil Field
Oil was discovered in the Woollybutt-3A well drilled in the Southern Lobe in 1999, and the discovery was confirmed with the drilling of the Woollybutt-4 and Woollybutt-5A appraisal wells.
The Woollybutt-4 and Woollybutt-6 wells will be tied via subsea flowlines to the floating production, storage and offloading vessel Woollybutt Four Vanguard in early 2008.
The Woollybutt field is located in about 328 ft of water about 50 miles north of Onslow on the North West Shelf of Australia.
Woollybutt has been a success story with the production to date from the Northern Lobe exceeding 26,500,000 barrels of oil or approximately $2,120,000,000 at current crude oil prices.
Total reserves for the field are estimated to be 40,000,000 barrels of oil or approximately $3,200,000,000 at current crude prices. Currently the Woollybutt field adjoining ACOR's ORRI under WA-373 is producing around 7,000 barrels per day.
About Offshore Western Australia
Offshore Western Australia is well established nationally and internationally as a significant hydrocarbon-bearing area. Offshore Western Australia has risen to prominence as Australia's leading oil producing State, with the State's daily oil and condensate production having surpassed that of Victoria's Gippsland Basin.
Offshore Western Australia also leads the nation in gas and LNG production. Petroleum (crude oil, condensate and natural gas) has become a leading contributor to the State's resources sector. Petroleum production accounts for more than one third of the value of Western Australia's mineral and energy production.
Offshore Western Australia was home to 67 producing oil and gas fields in 2005.
Collectively, they produce in excess of $AU14 billion worth of oil, gas, condensate, LNG and other products per year.
About ACOR's ORRI under WA 373 & WA 372
ACOR purchased two (2) royalty interests under offshore exploration permits, WA 372 & 373 in May 2007. The permits are located in the prolific Northwest Shelf in the Carnarvon Basin.
The Carnarvon Basin is Australia's second largest basin in terms of oil production and is by far the largest in terms of gas production.
The location of ACOR's ORRI under WA 372 & WA 373 is located close to some giant oil & gas discoveries. The eastern border of WA 372 is approximately 10 kilometers from the Barrow Island Oil Field, Australia's largest oil field with approximately 1.25 Billion barrels of oil in place or $87,500,000,000 at current market prices. The Barrow Oil Field has already produced approximately 300,000,000 barrels of oil or $21,000,000,000 at current market prices.
This does not even take in consideration the giant gas fields in the area. Located approximately 30 kilometers from the western border of WA 372, the Gorgon gas field has estimated reserves of 18 TCF of gas and 132,000,000 barrels of oil or $54,240,000,000 at current market prices.
The operator of WA 372 & 373 has an estimated $AU61,000,000 exploration program that includes drilling 2 wells within the 1st three years on each block. The estimated cost to drill one well is in excess of $AU10, 000,000.
ACOR owns a 1/30th of 1% ORRI under WA 372 & WA 373.
SOURCE: Australian-Canadian Oil Royalties Ltd.