Australian-Canadian Oil Royalties Ltd. (ACOR) signed a series of agreements with two private Australian companies and a private Canadian company to acquire a 100% working interest in Petroleum Leases 18 and 40 (PL18, PL40) and a 50% working interest in Petroleum Lease 280 (PL280) in the Surat Basin in Queensland, Australia.
The leases are in the Bowen/Surat Basin in Queensland Australia. The assets acquired by ACOR include five oilfields: Yellowbank Creek, Thomby Creek, Louise, McWhirter, Narrows and Beardmore. These fields were developed in the 1970s and 1980s, and have produced some fraction of the estimated oil originally in place.
The company believes that additional oil is recoverable through the application of well-established enhanced recovery techniques including downspacing, horizontal drilling, and reservoir pressure maintenance through waterflooding.
In the first quarter 2012, subject to completion of the acquisition, the company will be undertaking a workover program of certain wells on PL 40 and PL 280, which will reactivate two old wells at a cost of $250,000. The workover program is anticipated to bring total field production to approximately 25 barrels of oil per day.
The closing is anticipated in January 2012, subject to completion of the proposed financing described below, obtaining approval of the Minister of the State of Queensland, as well as other required consents and the renewal of the authority to prospect on ATP582, among other conditions.
Upon closing the acquisition, William Petrie Sr. and Jesse Meidl will join ACOR’s board.
Petrie has in excess of 35 years of experience as a petroleum geologist, primarily in Western Canada. He began his career with Mobil Oil, leaving after several years to join the independent sector. He has been involved as president and director for a number of public and private oil and gas companies.
Meidl has over 15 years of experience in the oil and gas sector. He is chief financial officer of a private international energy company, headquartered in London. Prior to that, he was an investment banker in the international oil and gas group of Thomas Weisel Partners in London (Now Stifel Nicolaus). He was previously the chief financial officer for Arsenal Energy Inc. He qualified as a chartered accountant with KPMG in Calgary, where he specialized in oil and gas exploration and production and services. He also holds the ICAEW Corporate Finance qualification and a business communications degree from the University of Saskatchewan (Canada).
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