2008-07-31 23:45:03 -
www.aussieoil.com - Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that Nexus Energy Limited, the operator of VIC/P54 including the production license VIC-L29 advises that the Longtom-4 development well in the Gippsland Basin, offshore Victoria has drilled into approximately 328 feet of gas pay zone.
The Longtom-4 well confirms the ability
of seismic to predict the position of gas-charged reservoirs across the field.
Nexus is now preparing to run wireline logs and, following this, Longtom-4 will be plugged back before the horizontal section of the well is drilled by the West Triton jack-up rig. This will intersect lengthy intervals of the two deepest sands that are prognosed to contain the major portion of gas reserves in this part of the field.
The Longtom-4 well is the second development well at the Longtom project.
The operator estimates the Longtom Gas Field reserves at approximately 323 Billion Cubic Feet of gas and 4,000,000 barrels of condensate.
Longtom-4 will be production tested and suspended as a future gas producer on ACOR's ORRI.
ACOR owns a 1/20th of 1% ORRI under the 155,676 acres (243 square mile) VIC/P54 (VIC/L29).
The Longtom-3 well, drilled during the third quarter of 2006, is ready for commercial production with no further rig intervention required.
Gas produced from the Longtom wells will enter a new 12 inch pipeline and will be transported from the field to the end of Santos' existing Patricia-Baleen pipeline, approximately 11.8 miles away. Nexus will construct this pipeline and the associated control lines and equipment.
The Next Offshore Well to be drilled on ACOR's ORRI
The next offshore well to be drilled after the Longtom-4 well is completed as a producer on ACOR's ORRI is called the Bazzard-1 Well, located Offshore in the Gippsland Basin on VIC/P53. The Bazzard-1 well will be drilled with the same drilling rig that is currently drilling the Longtom-4 well.
VIC/P53 consists of approximately 182,858 gross acres. VIC/P53 is also called the "Hole of the Doughnut" as it is surrounded by nine (9) giant producing oil & gas fields, leaving VIC/P53 in the middle.
One of the nine (9) giant fields is called the Halibut Oil Field.
The Halibut Oil Field adjoins VIC-P53 to the east
Esso Australia, a subsidiary of Exxon, operates the Halibut Oil Field located in the Bass Straits. The Halibut Oil Field was discovered in 1967 and has produced approximately 840,000,000 barrels of oil or approximately $100,800,000,000,000 (calculated by using current market prices of $120.00 per barrel) from 14 wells and is still producing.
One of the 1st original oil wells is the Halibut 15A well, which was drilled in 1967 and intersected an approximately 492 foot oil section.
The Halibut 15A well has produced approximately 84,000,000 barrels of oil or approximately $10,800,000,000.00 (calculated by using current crude oil prices of $120.00 per barrel) from one well!
The Halibut 15A well still has a projected production life of up to approximately the year 2077!
Last year, Esso Australia drilled three wells that offset the Halibut 15A well, the 1st well came in with an IP 3,800 BOPD, the 2nd well came in with an IP 12,500 BOPD & the 3rd well came in with an IP 9,000 BOPD. All three wells came in with 0% water cut.
These are incredible results in attempts to increase the life of a 41 year old oil field.
About VIC/P53
The JV partner of VIC-P53 will drill an exploration well called Bazzard-1 in order to test a four-way dip closure that the JV partner believes could hold approximately 30-50 million barrels of oil.
The location, adjacent to this infrastructure, and proximity to pipelines, processing facilities and major markets, offers potential advantage through infrastructure savings and gives encouragement to participation in VIC/P53. The hydrocarbons recorded at Veilfin-1 established the existence of a working petroleum system in the permit area.
ACOR owns 3/20ths of 1% ORRI under at 182,858 acre (285 square mile) VIC/P53.
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.
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 and Offshore in the Carnarvon Basin in Western Australia.
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.
Australian-Canadian Oil Royalties Ltd.
Investor Relations, 254-442-2638
acor@classicnet.net 
