APACHE Continues Drilling the Coelacanth
CISCO, Texas–(BUSINESS WIRE)–Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the JV Partner advises that the Coelacanth-1 well in VIC/P45 has drilled to approximately 6,000 feet in approximately 295 feet of water by the operator and farminee Apache Energy Pty Ltd, using Seadrill’s West Triton jack-up drilling rig.
Apache Energy Pty Ltd is a subsidiary of Apache Corp. (NYSE:APA). Apache will meet 100% of the cost of the Coelacanth-1 well and, at its option, the cost of a second well in ACOR’s ORRI under VIC/P45, in order to earn its full 66.67% interest.
At 6,000 feet, the primary objective is approximately 1900 additional feet from the 1st of three (3) main oil targets in the Coelacanth-1 well; the Top Latrobe, the Top Volador and the Intra-Volador. The JV Partner states that Apache’s assessed potential recoverable hydrocarbons of the Coelacanth structure on a success case range from 74.84 million barrels of oil in a P10 case to 5.85 million barrels in a P90 case, with a mean of 31.99 million barrels.
Current status of the drilling rig is that they are pulling out of the hole to change the drilling bit and hooking up the logging-while drilling tools and the bottom-hole assembly.
Drilling of the Coelacanth-1 well is expected to take approximately 16 days and will be drilled to a total depth of approximately 9,900 feet.
The Coelacanth-1 structure was discovered from the approximately $20,000,000 dollars worth of new 3-D seismic data. The Coelacanth-1 structure is in geological trend with the Bream Oil Field, the Kingfish Oil Field & the Kingfish West Oil Field.
The Geological Oil Trend starts from the Northwest to the Southeast portion of the Gippsland Basin:
1. Bream Field started drilling in 1988 and has produced approximately 88,000,000 barrels of oil or $8,800,000,000 at current market prices of $100.00 per barrel.
2. Kingfish West Field was discovered in 1968 and has produced approximately 200,000,000 barrels of oil or $20,000,000,000 at current market prices of $100.00 per barrel.
3. Kingfish Field was discovered in 1967 and has produced approximately 1,100,000,000 barrels of oil or $110,000,000,000 at current market prices of $100.00 per barrel.
4. The geological oil trend leads southeast to the Coelacanth-1 structure on ACOR’s ORRI under VIC/P45 with possible estimated reserves of approximately 74,000,000 barrels of oil or $7,400,000 at current market prices of $100.00 per barrel.
Click on link below to see a map of the Gippsland Basin showing this geological trend, the Coelacanth structure & a photo of the West Triton Drilling Rig http://www.aussieoil.com/site/map2.htm.
About VIC/P45:
VIC/P45 consists of 214,896 gross acres. VIC/P45 is located offshore in the most prolific oil-producing basin in Australia, approximately 1 1/2 miles east of the Kingfish Oil Field in the Southern Gippsland Basin in the Bass Strait.
The Kingfish Oil Field was discovered in the late 1960’s and is still producing and has produced approximately 1,100,000,000 of oil to date.
During the flush production of 1975 – 1979, the Kingfish Oil Field produced an average of approximately 250,000 Barrels of Oil per Day.
The permeability in the Kingfish Oil Field runs between 5,000 Milidarcies & 40,000 Milidarcies, which is extremely high.
VIC/P45 Proven Reserves
Back in the late 1980’s, Petrofina made two discoveries on VIC/P45 which includes one oil field discovery, called Archer and one gas field discovery, called Anemone-1A.
The Archer anticline has four (4) oil pays and seven (7) gas pays with approximately 1280 feet of net pay section. The estimated reserves of the Archer field are approximately 40,000,000 barrels of oil and approximately 32 BCF of gas.
The estimated reserves for the Anemone-1A are approximately 11.3 BCF of gas and approximately 600,000 barrels of condensate.
The decline in the price of oil in the late 1980’s made the Archer & Anemone non-economic to develop. If Apache is successful with the Coelacanth-1 well perhaps the Archer & Anemone fields could be considered economical to produce.
IMI, an independent third party geological appraisal company, estimated that VIC/P45 could possibly contain approximately 350 million barrels of oil and 4 TCF of gas.
ACOR owns a 7.5% of 1% ORRI under VIC/P45.
The Most Frequent AUCAF Shareholder Question Asked:
- What is a 7.5% of 1% ORRI possibly worth?
A 7.5% of 1% ORRI may not sound like a lot. But, for example if you owned a 7.5% of 1% ORRI under the Kingfish Oil Field* and if the Kingfish field produced 1,100,000,000 barrels of oil and the operator was able to sell the oil produced for an average of $100 per barrel, then your 7.5% of 1% ORRI would have generated in gross revenue approximately $82,500,000 before taxes.
*PLEASE NOTE: This was merely an example for you to try to understand that a small fractional ORRI’s under a giant oil field can possibly lead to large gains. ACOR does not own any ORRI’s under the Kingfish Oil Field and there are no guarantees of a similar performance.
About The Gippsland Basin:
In excess of 4 billion barrels of oil/condensate and 12 TCF gas reserves have been discovered in the Basin since exploration drilling began in 1964, with remaining reserves estimated at 600 million barrels of oil and 5 trillion cubic feet of gas. Current production of the basin is around 140,000 barrels per day of crude and 570 million cubic feet per day of gas. At peak rates, the Gippsland Basin can deliver more than 1,000 million cubic feet a day.
Some of the very best oil production in the world is found in the Gippsland Basin. Take for example, the Halibut Oil Field. The average well in the Halibut Oil Field has produced 60,000,000 barrels of oil per well or $6,000,000,000 worth of oil per well, at current crude market prices.
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.