Operator States that the Offshore Australia Longtom Gas Field, located on
ACOR’s ORRI is on schedule to start production in July
CISCO, Texas -- June 18, 2009
Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is
pleased to announce that the operator, Nexus Energy Limited states that
Longtom gas field on ACOR’s ORRI is fully funded and remains on schedule for
an expected first gas supply to Santos Limited in July 2009 at a volume of
approximately 11,000 - 12,000 barrels of oil equivalent per day (100% basis).
ACOR owns a 1/20^th of 1% ORRI under VIC/54 (including VIC/L29) covering
approximately 155,676 gross acres.
About the Longtom Gas Field
The Longtom gas field is located in production license VIC/L29 in the
Gippsland Basin, offshore Victoria. The field is approximately 12 miles from
the coastline in approximately 183 feet of water depth. The development
concept for Longtom initially involves two subsea gas production wells tied
back to the existing Patricia Baleen facilities operated by Santos Limited.
Nexus has booked 2P reserves of approximately 350 BCF of gas and approximately
4 MMbbl of condensate for the field.
In September 2006, the Longtom-3 well flowed at over 75 MMCF per day on test
while bypassing the separator, confirming that it can also alone meet the
In September 2008, the Longtom-4 development wellwas successfully flow
tested. The test of the primary production zone within the Admiral formation
flowed at a rate of approximately 58 MMCF per day through a 64/64” choke on
ACOR’s ORRI. The well flowed for 35 hours before being shut-in to monitor the
pressure response from the reservoir.
The Longtom gas project is a significant long term infrastructure development
that has the capacity to deliver over 10% of Victoria’s annual gas demand. The
Longtom project financier has notified Nexus that head office credit approval
has been provided regarding the amended project milestone dates.
The offshore installation is progressing well and the approximately 5 mile
offshore pipeline to connect the Longtom gas field to the existing Patricia
Baleen offshore pipeline has now been laid on the seabed. In addition, the
control system installation and hook up work to the two existing Longtom
production wells is underway.
This installation work is the precursor to full commissioning of the offshore
production and gathering system that will deliver gas to the Orbost gas plant.
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
ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board
Exchange under the trading symbol "AUCAF."
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.
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
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