AUCAF is Australian Canadian Oil Royalty Ltd (ACOR)

AUCAF, on a 70 hole drill campaign, for 2006, is 50% complete and succesfully found Oil in 30 out of 36 holes.  My avg cost 0.52 dropped back to 0.45 then back to 0.52 stable on 3255 shares.  Each well has been capped and ready for production.  

They have a signed agreement with Santos for the next 10 years to process their Oil.  Company is working with China to secure agreements - China very interested and currently has a delegation working with the AUCAF team.

Both on shore and offshore drilling going on.  Offshore, AUCAF, is drilling among existing producing well holes.  Expects of save significantly by leveraging existing  pipelines and infrastructure.

http://www.acorltd.com

Bill

The attached graph indicates that the bottom is near.  I placed a limit order for 2000 shares this morning at 0.45.  

The ask is near .50 but there is still a little downward pressure left as of yesterday.

I expect the price to start trecking upward to the 6mo high over the next couple of months somewhere in the neighborhood of $1.45 to $1.66 then I would ring the register in that range.

Good stock with decent upside.  It also helps with the geopolitical uncertainty of Iran's large percentage of Oil production possibly being sanctioned or blocked if they continue down the rhetoric path.

The same news posted for EESV also applied to AUCAF.

The news is not good for the oil consumer.

At 0542 CDT, US - Hurricane season is just starting to peak, IRAN's nuclear enrichment ambitions causing market uncertainty, US wants to impose economic sanctions on IRAN (the 4th largest exporter of Oil), supply constraints, rising demand (i.e., China increased oil consumption by 12% in July), and most important very few refineries left to process the oil.  Most refineries are 20 and 30 years old!

I expect the market price for AUCAF to go as well on the news just noted.  Further, I expect China to aggressively expand their acquisition of mineral rights to foreign countries in an effort to satisfy their insatiable appetite for energy related products.

The heat is also causing exceedingly high demand for electricity consumption related to air conditioning too.

This is good news since AUCAF recently announced their finds related to NG test drilling.  

Bill



I had sell orders in this morning but cancelled them after reading the Asian news that Oil and demand for Oil was up.  

Even on a down day for Oil - AUCAF is holding steady.

Some market prognosticators still calling for Oil to reach $100/barrel.  This could be a temporary pull back in the price of oil.  Even if the price comes back to 50/barrel its still profitable for oil companies to continue drilling and producing.

I doubt that will happen since the US Goverment's Energy Information Agency (EIA) is forecasting oil to average $70/barrel for the rest of 2006 and 2007 as China and India move full speed ahead with their thirsty growing economies.  

See the reports on the EIA website for the short-term outlook for crude and gasoline:

http://www.eia.doe.gov/emeu/steo/pub/contents.html


Now this is really interesting.  The EIA is expecting imported oil to the US to go down (Supply) while consumption (demand) expected to rise through the remainder of 2006 and 2007.  Check it out:

http://www.eia.doe.gov/emeu/steo/pub/h1tab.html

For AUCAF, China is working closely with Australian producers as well as other countries around the world to secure sources of energy and this will continue to drive world petroleum demand as the US will have to compete with China and India for the same sources of petroleum.

I can see why AUCAF and EESV will continue to be good players in the pink and OTC market for Oil, Coal, Coal Bed Methane, etc.

Bill

$50+ Million Dollar / 70 Well Program - The Largest Continuous Onshore Drilling Program in SW Queensland Australia Strikes Oil on Three (3) More Wells on ACOR's ORRI under ATP-299

http://biz.yahoo.com/bw/060829/20060829005421.html?.v=1

Just another example that this crew is in the game to build their business.  This is a buy even if the price goes to a buck...just wish I had more money to invest!  

Anyone got a few Lottery dollars they were going to throw away...  I'd rather put it in this stock.  At least the odds of winning are significantly better.

China's petroleum engineers team with ACOR's management to cooperatively explore and drill for oil.

http://www.aussieoil.com/site/leads,seismic,infrastructure.htm

This may not be current news but it does provide insight into the operations at ACOR.  There's lots of info on their website and they're in the git'r done mode.

Bill

AUCAF is undervalued at the current levels considering the market potential for both discovered, capped, and estimated reserves based on 2D and 3D Seismic graphs.  Their drilling program continues to successfully strike oil better than 83% of the time.

Excerpt from their quarterly statement in May 06:

"The Company owns 41.5% working interest in Petroleum Exploration License ("PEL") 112, which covers approximately 818,000 acres. The first quarter of 2006 was focused on farming-out PEL 112 located in the Cooper/Eromanga Basin. The importance of ACOR's 41.5% working interest in PEL 112 is best described by the production on the adjoining concessions to the east and north. To the east of PEL 112 is the Worrior Field consisting of two wells that are generating annual oil sales of $US75,000,000. Eleven more wells have been announced for drilling this year expanding the Worrior Field. To the north of PEL 112 is the Christies Field, which is producing approximately $33,000,000 per year in oil sales. "

Source: 10QSB - http://biz.yahoo.com/e/060518/aucaf.ob10qsb.html

Bill

Contract Signed with Santos to Sell 320 BCF of Gas on VIC/P54

ACOR is also pleased to announce that the operator of VIC/P54 has signed the Longtom Gas Sales and Toll Processing Agreement with Santos. The agreement will enable the operator of VIC/P54 to process and sell up to 350 BCF of gas over 12 years (with an option for additional 91 BCF of gas) from the Longtom Gas Field located in Bass Strait on ACOR's ORRI.

The gas from VIC/P54 will be processed through Santos existing Patricia Baleen facilities near Orbost in Victoria. The Longtom Gas Sales Agreement with Santos is conditional on the successful completion of the Longtom-3 appraisal well and the operator of VIC/P54 is confident that this will be achieved.

Upon a successful completion of Longtom-3, the first gas is anticipated to flow from the Longtom Gas Field by mid 2008.

Source: http://biz.yahoo.com/bw/060906/20060906005594.html?.v=1

Monday October 16, 9:47 am ET


CISCO, Texas--(BUSINESS WIRE)--Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF - News) reports that the JV partner of ATP-299 has announced more continued success with the Tintaburra development drilling program. Mulberry 21, Mulberry 22 and Endeavour 19 wells have all been cased and suspended as a future oil production wells on ACOR's ORRI.

http://biz.yahoo.com/bw/061016/20061016005575.html?.v=1

The price has held at 0.30/sh for a little over a month now.  It may have hit its support level.

Still a very good entry point for a company with comparably low LTD and signed contracts with Santos for processing the crude and natural gas.  

While the company's balance sheet could use some improvement the potential exists for future earnings based on the success of their oil drilling program.  The share price is down for now and I see a bright future for AUCAF.  The price of oil is starting to rise again and this may be the time to add more to the portfolio.  The 52 week high was just over $1.80/sh.