(Source: Business Wire)
Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator, Victoria Petroleum N.L. (Vicpet) for the PEL 111 Joint Venture, advises that the Short Term Production Test at Snatcher-1 has resulted in a flow to the surface from the Birkhead Formation of clean 48 degree API oil at a rate of 218 barrels per day on a 12/64 in choke.
The Short Term Production Test will continue over the next week to establish stabilized production rates and reservoir pressure information for future long term production.
Snatcher-1 was a successful test of the oil bearing potential of the Snatcher Prospect adjacent to the Santos Limited operated Charo Field in PPL 177. The PPL 177 license is wholly contained within PEL 111.
ACOR owns a 1/10th of 1% ORRI under PEL 111, covering approximately 292,819 gross acres.
Rig Moves to immediately Drill Snatcher-2 Well on ACOR's ORRI
Drill site preparation activities are in progress at the Snatcher-2 exploration well location for the planned drilling of Snatcher-2, expected to commence drilling in approximately 7 days time. The Century drilling rig is currently stacked at the Snatcher-1 well location, ready to move.
The Snatcher-2 exploration well location is approximately 2,949 feet to the northwest of Snatcher-1.
ACOR management looks forward to the drilling results from the Snatcher-2 exploration well as a discovery here would further confirm our belief in the potential of the Western Margin Oil Project within PEL 111.
About the Western Margin Oil Trend:
The new Snatcher oil field discovery on ACOR's ORRI under PEL 111 could possibly help discover a major new oil province that could possibly extend west to ACOR's PEL 112. The production testing of the Snatcher-1 well is planned to be carried out in mid July.
The western margin oil trend is an attractive exploration target for two reasons.
It is one of the few places where hydrocarbons from Cooper Basin source rocks can migrate into traps in the overlying Eromanga Basin. In most places, a cap rock at the unconformity between the Cooper and Eromanga prevents this happening, but along the western margin the cap rock is faulted, eroded or otherwise missing.
Secondly, the western margin is only lightly explored. Santos made oil discoveries at Charo and Callabonna in the early 1990s, but it left thousands of square miles unexplored because of its priority on gas exploration.
