SOURCE: Australian Canadian Oil Royalties Ltd.

November 11, 2010 12:40 ET

A 3-Well Drilling Program Begins on ACOR's ORRI in the Cooper/Eromanga Basin -- Cooper/Eromanga Basin Flood Update

CISCO, TX--(Marketwire - November 11, 2010) - Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB: AUCAF) is pleased to announce that the JV Partner of the Utopia Oil Field states that the drilling operations of the Ubute-1 oil exploration well in ATP 560P located in the prolific Cooper/Eromanga Basin in SW Queensland has begun on ACOR's ORRI.

The Ubute-1 well is being drilled by the ADS Rig 6. Ubute-1 lies in the Utopia Block.

Ubute-1 will be the first of 3 wells to be drilled at ACOR's Utopia Oil Field in the next six (6) weeks.

Ubute-1 is primarily targeting oil in the Murta Formation and in the Wyandra Sandstone. Oil is proved and being produced from these zones in offsetting wells at the Talgeberry Field to the west, and Utopia Field to the south. The well will test secondary targets in the Namur Sandstone, Westbourne Formation, Adori Sandstone and Birkhead Formation, all of which produce oil in the area.

Significant oil shows were recorded in two zones in the nearby Toolerah Creek 1 well. The well is part of the joint ventures plan to seek expansion of Murta zone oil surrounding the Utopia Field and will intersect all target formations in a four-way dip closure.

It is planned to tag the Late Devonian age basement at TD of around 4,429 feet. The closure of the Ubute prospect covers an area of approximately 1.24 miles and is targeting approximately 500,000 barrels of oil recoverable at the Murta Level.

Oil from the Utopia field is sold and trucked to the nearby Eromanga refinery.

ACOR owns a 25% of 1% ORRI under ATP-560, which includes the Utopia Oil Field.

About The Utopia Oil Field:

The Utopia Oil Field is located in the prolific Cooper/Eromanga Basin in Queensland Australia. The Utopia Oil Field produces light, sweet oil from sands in the early Cretaceous Murta member, trapped in a low relief anticline. The Utopia Oil Field is the largest known Murta field in the Queensland sector of the Eromanga Basin and is severely underdeveloped.

A 2004 review indicated a relatively large pool, with possible recoverable oil reserve estimates of approximately 2.86 million barrels of oil (P50) on ACOR's ORRI.

Cooper/Eromanga Basin Flood Update-

After several months of delays due to heavy rains and flooding, parts of the Cooper/Eromanga Basin are finally allowing some operators to resume operations and drilling plans.

Heavy rain in 2010 saw much of Queensland & parts of South Australia undergo major flooding.

The floods that coursed through parts of the Cooper/Eromanga Basin have played havoc with oil & gas production for the basin's operators on ACOR's ORRI's & Working Interest. 

The floods were caused by rainfall generated by a monsoon trough described by a Bureau of Meteorology forecaster as "almost like a tropical cyclone over land."

The floods were described by the Queensland Minister for Primary Industries Tim Mulherin as the "worst flood in 120 years."

Click on link below to see photos of the flooding and also see the current drilling activity of the drilling of the Ubute-1 well on ACOR's ORRI under ATP-560.

http://www.aussieoil.com/site/acor-map.pdf

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of approximately 15,440,116 gross surface acres of overriding royalty interest and approximately 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:

Cautionary Note to U.S. Investors:

The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable" (P90), and "mean risked reserves," that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our Form 10K, Form 10Q and other filings with the SEC available from us at 1301 Ave M Cisco, Texas 76437. You can also obtain this information from the SEC on-line at www.sec.gov or by calling 1-800-SEC-0330.

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.

Contact Information

  • Contacts
    Australian-Canadian Oil Royalties Ltd.
    Investor Relations
    254-442-2638