Anglo Canadian Oil Corp.
TSX VENTURE : ACG

Anglo Canadian Oil Corp.

July 12, 2011 09:00 ET

Anglo Canadian Oil Provides Operations Update

CALGARY, ALBERTA--(Marketwire - July 12, 2011) - Anglo Canadian Oil Corp. ("Anglo" or the "Corporation") (TSX VENTURE:ACG) is pleased to announce the recently completed Dodsland 6-22 well will be equipped with a single well battery and will begin production when complete. This well represents a new Bakken oil pool discovery in which the potential barrels recoverable is unknown. In addition, the Buffalo Coulee 16-22 well has been equipped with a jet pump which is expected to remedy sand related production problems.

The Company holds Bakken rights in 17,640 noncontiguous acres in the Dodsland/Buffalo Coulee area of Saskatchewan, at a working interest of 100 percent. These land holdings range in area from Township 26 to 34 and from Range 20 to 26W3, near the towns of Kerrobert and Kindersley. Middle Bakken production exists in and around Anglo Canadian's land holdings and consists primarily of vertical wells, however, there are a small number of horizontal Bakken producers in the area. The oil ranges in gravity from 11.9 degrees API at Hoosier East Bakken to 15.4 degrees API at Plover Lake East Bakken.

Resource estimates of the Dodsland/Buffalo Coulee Bakken are included in the table below. The oil and gas resource calculations, performed by AJM Petroleum Consultants ("AJM"), were estimated in accordance with the Canadian Oil and Gas Evaluation Handbook ("COGEH") and National Instrument 51‐101 ("NI 51‐101"). The Evaluation Procedure section included in this report details the resource definitions and general procedures used by AJM in its determination of this evaluation. The full report may be viewed on Anglo's website, www.anglocanadianoil.com.

Discovered Petroleum Initially-in-Place
Dodsland/Buffalo Coulee Bakken Low Estimate
(MMstb)
Best Estimate
(MMstb)
High Estimate
(MMstb)
Discovered Petroleum Initially-in-Place (DPIIP) 51.5 81.2 128.1
Discovered Remaining Petroleum Initially-in-Place (DRPIIP) 51.4 80.9 127.8
Contingent Oil Resources
Contingent Remaining Oil Resources 3.6 6.8 12.7

(This Table and the paragraph above it were taken from a technical report entitle, "Resource Study Middle Bakken Formation, Dodsland/Buffalo Coulee Saskatchewan" authored by L. J. Machula, P.Geo, and L. Kis, P.Eng. of AJM Petroleum Consultants, April 2011.)

Anglo's primary focus continues to be the development of the Nordegg Play. Two surface locations (Ante Creek N. 3-4-67-26 W5 and Ante Creek N. 8-3-67-26 W5) have recently been surveyed in Anglo's Ante Creek area of West Central Alberta. These wells are planned to test for Nordegg and Montney oil. Drilling is expected to commence this summer. Recent studies show Anglo's Ante Creek Nordegg lands to constitute some of the highest permeabilities coupled with the highest pressures in the Nordegg oil fairway. These lands also exhibit high total organic content (TOC) measuring greater than 10%.

The Ante Creek area has seen an increase in drilling and licensing activity from some of the larger petroleum players in the region. A number of horizontal wells have been drilled and/or licensed into the Nordegg with results of confidential status. In addition, a well (Twnshp 67-24 W5) recently re-completed in the Nordegg flowed at an initial production rate of 30 bbl oil/day (4.6 m3 oil/day). This well contributes to the mounting evidence of the flow-ability of Nordegg oil as it relates to commercial volumes of production. Historical cumulative production in the greater Ante Creek area and within Anglo's focus area includes approximately 700,000 barrels of oil from three wells.

Anglo had obtained an independent resource assessment, based on its Nordegg properties and prepared by AJM an independent qualified resource evaluator, with an effective date of June 30, 2010 and which complies with COGE Handbook standards and National Instrument 51-101 entitled Standards of Disclosure for Oil and Gas Activities as adopted by the Canadian Securities Regulators.

Probabilistic analysis was used in the preparation of this volumetric resource estimate on Anglo's lands in the "Nordegg Member". The Report documents the results of AJM's independent evaluation with the following table summarizing the total un-risked Discovered Petroleum Initially-in-Place ("DPIIP") volumes for the four areas studied, including a best estimate of over 6.47 billion barrels of oil.

The full report may be viewed on Anglo's website, www.anglocanadianoil.com

Petroleum Initially-in-Place
Low Best High
Rycroft, Alberta 605,310 781,862 1,009,909
Kakut, Alberta 1,287,287 1,691,537 2,222,736
Sturgeon Lake, Alberta 1,845,799 2,465,124 3,292,252
Ante Creek North, Alberta 1,193,885 1,537,890 1,981,016
Total (Arithmetic Sum) 4,932,281 6,476,413 8,505,913

Hydrocarbon Liquid Analysis of Anglo's Shane Well samples from the Nordegg formation indicate an API of 26.3°@ 15° Celsius with 98.26% of the oil's mass representing carbon chains of C7 to C30. A Saturates, Aromatics, Resins, and Asphaltenes Test (SARA) has been performed and shows an aromatic content of 63.08% by weight. The Corporation is encouraged by this value as high aromatic content, which represents benzene (C6), toluene (C7), and ethyl benzene (C8) among others, may speak to greater oil flow-ability and a higher oil value.

The Nordegg formation offers a thick net pay in comparison to other current oil resource plays. Below is a table that provides the formation net pay for several producing zones.

Cardium Bakken Viking L. Shaunavon Nordegg
Net Pay (m) 6 – 14 6 – 12 3 – 8 4 – 8 21 - 27

(This Table was taken from technical report entitle, "Resource Nordegg Resource Study, Grand Prairie, Alberta" authored by A.R. Botterill, P.Eng, M.R. Price, P.Geo., and L. Kis, P.Eng. of AJM Petroleum Consultants, June 2010 and may be viewed in its entirety on Anglo's website.)

Anglo holds a 100% working interest in 269 sections (172,000 acres) of potential oil bearing Nordegg Member lands in West Central Alberta with a total estimated un-risked resource of 6.47 billion barrels of discovered petroleum initially-in-place. Please see the AJM Petroleum Consultants report at www.anglocanadianoil.com and Anglo's press release of July 20, 2010 for discussion of defined terms and disclaimers.

In addition, the Company holds a 100% working interest in 140 sections (89,600 acres) in the mature portion of the Duvernay/Ireton oil window. This is primarily a non-conventional shale resource type play with the potential for Beaverhill Lake conventional source oil rock. This area has recently seen major land sale activity.

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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