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Mirage-3 DST Flows Oil 324 BOPD - 83% Drilling Success on ACOR's ORRI
3/8/2006
CISCO, Texas, Mar 08, 2006 (BUSINESS WIRE) --

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator for the PEL 115 Joint Venture advises that at 0600 hours Central Standard Time (CST) today the operation was running back into the hole to drill ahead at 1330 meters towards the secondary targets in the well after having successfully completed Drill Stem Test (DST) No.1.

Open hole DST No.1 over the Murta formation interval 1317-1330 meters recovered 27 barrels of clean oil with no water in the drill string over a two hour flow period equating to an estimated flow rate of 324 barrels of oil per day. The results of this DST are similar to those for the producing Mirage-1, the discovery well for the Mirage Oil Field and confirm the extension of the Mirage oil pool to this northern portion of the Mirage Oil Field. The Murta oil sands, the primary target for Mirage-3, are producing 970 meters to the southwest at Mirage-1.

Secondary targets are sands of the McKinlay at 1,368 meters, Namur at 1,383 meters, Birkhead at 1,592 meters and Hutton at 1,618 meters. The proposed total depth for the well is 1,668 meters, when the well will be completed as a Murta oil producer. ACOR is very pleased with the recovery of oil on DST from the third development well.

83% Success Rate on ACOR's ORRI

The operator has drilled a total of six wells on PEL 115. So far, five out of the six wells drilled on PEL 115 have been completed and put into production or are awaiting production testing. This gives PEL 115 an impressive 83% drilling success ratio.

The operator has three more wells planned to drill back-to-back on PEL 115.

About The Mirage Oil Field

Mirage-1 was discovered in 2004 and began oil production in January 2005. The Mirage-1 well produces from the Murta Formation and has produced over 37,000 barrels of oil to date. Mirage-2 was spudded in Feb 06 and is being completed as a Murta Formation oil well. Mirage-2 is currently shut-in pending the arrival of a swabbing unit to swab the well in for production testing. The operator for the PEL 115 advises that interpretation of the 3D seismic data is indicating that the oil/water contact encountered in Mirage-1 is below what has been mapped as the structural closure of the Mirage feature.

This means that the Mirage Oil Field has either a stratigraphic component or the Mirage Oil Field is larger than first mapped.

The interpretation of the 3D data set suggests that Mirage-1 could be part of a larger feature covering approximately 20 square kilometers that includes the Lightning and Jindivik prospects five kilometers to the northeast.

Using conservative reservoir parameters, such an area has the possibility of containing up to 20 million barrels of oil in place.

Further exploration drilling is required to confirm this possibility and this will take place after the Mirage-4 development well, with the drilling of the Lightning-1 and Jindivik-1 exploration wells.

ACOR owns a 1/10th of 1% ORRI under PEL 115.