Anglo Canadian Oil Corp.
TSX VENTURE : ACG

Anglo Canadian Oil Corp.

August 30, 2011 08:00 ET

Anglo Licenses Ante Creek 8-3 Well Targeting Nordegg Oil

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2011) - Anglo Canadian Oil Corp. ("Anglo" or the "Corporation") (TSX VENTURE:ACG) has received approval to drill its 8-3-67-26 W5 Ante Creek well. Lease and road construction is expected to be complete within a week with the rig move and well spud following imminently, pending rig availability and weather. Anglo's 3-4-67-26 W5 well licensing is currently in the approval process. It is Anglo's current expectation that the 3-4 well is to be drilled following the 8-3 well.

Both these wells target the Nordegg and Montney zones.

In addition, the Corporation has completed the surveying of three locations on its Sturgeon Lake lands targeting the Nordegg. Winter location scouting has been performed on potentially four multi-well pads also targeting the Nordegg on its Ante Creek lands.

Recent successful activity within the Nordegg Member oil fairway has been reported. A major player active in the area recently reported a Nordegg horizontal well completed with a multi-stage frac had produced 500 BOE/d with 400 bbl/d oil in initial flow back tests. Anglo's Ante Creek Nordegg lands are on trend with this well, which is approximately 30 miles from Anglo's lands. The same company had also drilled a horizontal multi-stage frac'd Nordegg well approximately 30 miles from and on trend with Anglo's Ante Creek lands. The 30 day initial production rate for this well was 78 bbl oil/d.

These wells reportedly produced an API oil gravity of, respectively, 41 degrees and 32 degrees.

This same company plans to have additional results from four Nordegg and Montney wells drilled in the Placid and Simonette areas by early September.

In addition another Nordegg producer, 11 miles from Anglo's Ante Creek lands, was recompleted recently in a vertical well and produced at an average of 29 bbl/d oil over the initial 30 day producing period.

Anglo owns rights to 172,160 acres (269 sections) of potential Nordegg oil bearing lands in West Central Alberta, as well as 89,919 acres (140 sections) of potential oil bearing Beaverhill Lake and Duvernay lands in Central Alberta and an additional 17,640 acres (27 sections) of potential Bakken and Mannville oil bearing lands in the Kindersley area of Southwest Saskatchewan. In the vast majority of these lands, the Corporation holds a 100% working interest.

Anglo had obtained an independent resource study in respect of its 172,160 acre "Nordegg Member" oil prospect in West Central Alberta. This resource evaluation (the "Report") was prepared by AJM Petroleum Consultants ("AJM"), an independent qualified resource evaluator, with an effective date of June 30, 2010 and complies with the Canadian Oil And Gas Evaluation Handbook (COGEH) 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 Petroleum Initially in Place as follows:

Discovered Petroleum Initially-In-Place (Mstb)
Area 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

* Note: These volumes are an arithmetic sum of multiple estimates of Discovered Petroleum Initially-in-Place, which statistical principles indicate to be misleading as to volumes that may actually be initially in place. Readers should give attention to the estimates of the individual classes of DPIIP and appreciate the differing probabilities associated with each. The probability associated with the High estimate would be considered far less than P10, and conversely, the Low estimate would be expected to be much higher than the presented arithmetic sum. Probabilistic aggregation could have been performed, but given the lack of general acceptance in these procedures, COGEH (section 5.5.3) prefers that these values not be presented.

AJM did not assign any recovery factors to this area, and are of the opinion that such recovery factors will ultimately be dependent on proving the presence of economically producible oil, as well as the number of wells drilled per section, and the technology used to complete these wells. Therefore, AJM has only estimated PIIP at this time and would require further information before recoverable volumes could be reported.

In addition to the Nordegg resource estimate, Anglo had commissioned AJM to provide a resource study on Anglo's Dodsland/Buffalo Coulee, Saskatchewan properties. The report summarizes the conventional resources in the Middle Bakken Formation, which is presented in tabular form below. The oil and gas resource calculations, upon which the report is based, were estimated in accordance with the COGEH and National Instrument 51-101.

Discovered Petroleum Initially-in-Place
Discovered Petroleum
Initially-in-Place
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
Dodsland/Buffalo Coulee Bakken Low Estimate
(MMstb
) Best Estimate
(MMstb
) High Estimate
(MMstb
)
Contingent Remaining Oil Resources 3.6 6.8 12.7
Contingent Gas Resources
Dodsland/Buffalo Coulee Bakken Low Estimate
(Bcf
) Best Estimate
(Bcf
) High Estimate
(Bcf
)
Contingent Raw Gas Resources 3.1 6.2 12.3
Contingent Sales Gas Resources 1.9 3.8 7.7

Cautionary Statements

The estimate of remaining recoverable resources (un‐risked) includes contingent resources that have not been adjusted for risk based on the chance of development. There is no certainty that the pools will be developed or, if they are developed, there is no certainty as to the timing of such development.

Individual wells or small pools could have results that are below the low estimates or exceed the high estimates for any or all parameters. Distributions are estimates for the average result over the company's land holdings as a whole.

RESOURCE AND RESERVE DEFINITIONS

AJM has prepared the estimates of resources and reserves in accordance with the process published in the COGEH Volume 1, 2nd Edition.

The term "resources" encompasses all petroleum quantities that originally existed on or within the earth's crust in naturally occurring accumulations, including Discovered and Undiscovered (recoverable and unrecoverable) plus quantities already produced. Accordingly, total resources is equivalent to Total Petroleum Initially-In-Place ("PIIP").

Total Petroleum Initially-In-Place ("PIIP") is that quantity of petroleum that is estimated to exist originally in naturally occurring accumulations. It includes that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations, prior to production, plus those estimated quantities in accumulations yet to be discovered (equivalent to "total resources").

Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of Discovered Petroleum Initially-In-Place includes Production, Reserves, and Contingent Resources; the remainder is unrecoverable.

Production is the cumulative quantity of petroleum that has been recovered at a given date.

Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be recoverable from known accumulations, as of a given date, based on: the analysis of drilling, geological, geophysical, and engineering data; the use of established technology; and specified economic conditions, which are generally accepted as being reasonable. Reserves are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on development and production status.

Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status.

Both the Nordegg and Bakken resource studies may be viewed in their entirety on Anglo's website www.anglocanadianoil.com

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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