Anglo Canadian Oil Corp.
TSX VENTURE : ACG

Anglo Canadian Oil Corp.

October 20, 2010 17:28 ET

Anglo Canadian Oil Corp. Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Oct. 20, 2010) - Anglo Canadian Oil Corp. ("Anglo" or the "Corporation") (TSX VENTURE:ACG) has suspended operations on its Shane 7-11 horizontal well. The well was drilled, cored, logged, plugged back and drilled horizontally through a 32 metre thick Nordegg zone, which included two relatively porous and fractured limestone lenses and a dolomitic portion near TVD at 1,300 metres.

The 600 metre dolomitic portion of the horizontal 1,240 metre length wellbore was washed with acid and produced up to approximately 2 m3/day oil. The upper limestone lenses were fractured in 6 stages using a ported packer system with a total of 180 tonnes of sand. The horizontal wellbore profile was designed in such a manner which would allow testing of the different facies as observed from the core samples. Also, this relatively shallow Nordegg horizon would help contain costs while testing different completion techniques. The Nordegg is as deep as 2100m TVD on Anglo southerly land holdings.

Swabbing of the wellbore provided up to 3 m3/d oil with up to 80% water cuts.

Core analysis of the matrix of the Nordegg Member taken from the vertical wellbore is encouraging with large amounts of calcite (27%) quartz and silica (23%) and a corresponding low amount of clay (9% illite), which provides a very brittle rock that is easily fractured. Total clay and organic matter was 16% in this core.

The viscosity of the oil was encouraging; the absolute viscosity being approximately 7-9 mPa*s at 50 degrees C (downhole temp is 46 degrees C) and API oil gravity at approximately 26 degrees. The high aromatic content of the oil can act as a diluent, effectively lowering the viscosity of the oil. Asphaltenes, which if in abundance can cause plugging of the pore throats, is in low concentrations at 2.6% by weight.

The Jurassic Nordegg is well known oil source rock with large amounts of OOIP in West Central Alberta. Anglo has secured 269 sections (69,000 ha) of Nordegg rights in the heart of the "thermally mature" fairway of the play. Recent land sales of some Nordegg rights in the area have fetched upwards of $300/ha. for 2 year licences. All of Anglo's 100% W.I. lands are 5 year leases, which may allow for the drilling of as few as 9 wells to secure the Nordegg rights on their lands indefinitely.

It is Anglo's mission to fully exploit their first mover advantage in this newest of resource plays to emerge in Western Canada. An AJM report, commissioned by Anglo states that there is approximately 6.5 billion barrels of Discovered Petroleum Initially in Place on Anglo's Nordegg properties alone (see disclosure and disclaimers in Anglo's press release of June 16, 2010).

Completion operations on the Sturgeon Lake South 5-10 well will continue pending additional core analysis of the 5-10 well. Upon full analysis of the core and subsequent stimulation designs, field operations will resume pending field equipment availability.

Recent additional aero magnetic studies purchased, and coupled with 2-D and 3-D seismic will be utilized to determine locations going forward, as well as recently published pressure surveys and hydrodynamic studies.

Anglo also holds 20 net 100% working interest sections of potential heavy oil Bakken and Mannville rights in the Kindersley area of SW Saskatchewan.

Anglo is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Common Shares are listed on the TSX Venture Exchange under the trading symbol "ACG".

CAUTION REGARDING FORWARD LOOKING STATEMENTS

Certain statements contained herein may constitute forward-looking statements Such forward-looking statements are subject to both known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Corporation to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Except as required by law, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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