Anglo Canadian Oil Corp. Provides Oil Analysis and Reservoir Parameters Update
CALGARY, ALBERTA--(Marketwire - Sept. 2, 2010) - Anglo Canadian Oil Corp. ("Anglo" or the "Corporation") (TSX VENTURE:ACG) is pleased to provide results from laboratory tests on oil samples taken from the Shane 7-11 horizontal well (the "Shane Well").
The Corporation commissioned AGAT Laboratories of Calgary, Alberta to conduct an Oil Analysis, Hydrocarbon Liquid Analysis and Properties of C6 + Fraction Test to further understand the nature of the Shane Well's 7-11 oil to assist in developing a stimulation program. The oil analysis, coupled with the oil so far retrieved from the well and other evidence, is encouraging and contribute to management's view that the Nordegg Member may be capable of producing commercially retrievable quantities of oil on Anglo's 8,064 hectare Shane lease. The Nordegg Member has produced over 600,000 bbls of oil from three vertical wells situated in the Nordegg Member oil bearing fairway in the Grande Prairie region of West Central Alberta.
Hydrocarbon Liquid Analysis of the Shane Well samples indicate an API of 26.3 degrees @ 15 degrees Celsius with 98.26% of the oil's mass representing carbon chains of C7 to C30. A Saturates, Aromatics, Resins, and Asphaltenes Test (SARA) has been performed and shows an aromatic content of 63.08% by weight. The Corporation is encouraged by this value as high aromatic content, which represents benzene (C6), toluene (C7), and ethylbenzene (C8) among others, may speak to greater oil flowability and a higher oil value.
As the Corporation makes preparations for a horizontal multi-stage frac of the Shane Well, and a vertical frac on the Sturgeon Lake South 5-10 well, historical evidence has also been reviewed. The porosity and permeability of the source rock serves to provide an indication of the flowability of oil. Looking at these two values in comparison to existing economically producing zones like the Bakken formation may offer some insight into the potential of the Nordegg Member. Below is a comparison of the porosity, permeability, net pay, and API of the Nordegg and Bakken formations taken from the previously disclosed AJM Nordegg Resource Study commissioned by Anglo and prepared by AJM Petroleum Consultants of Calgary, Alberta, which may be viewed in its entirety on Anglo's website, www.anglocanadianoil.com .
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Bakken Nordegg
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Permeability (mD) 0.2 - 1.0 0.1 - 10
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Reservoir Porosity (%) 9 - 12 5 - 18
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Net Pay (m) 6 - 12 21 - 27
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API (Oil) 42 17 - greater than 25
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Anglo has retrieved Nordegg Member core from both the Shane Well and Sturgeon Lake South 5-10 well which is largely consistent with previous findings. Completion operations on the Shane Well and Sturgeon Lake South 5-10 well will continue pending petrophysical and engineering evaluations, and pursuant to equipment availability.
Anglo holds a 100% working interest in 269 sections (172,000 acres) of potential oil bearing Nordegg Member lands in West Central Alberta with a total estimated un-risked resource of 6.47 billion barrels of discovered petroleum initially-in-place. See the AJM report at www.anglocanadianoil.com and Anglo's press release of July 20, 2010 for discussion of defined terms and disclaimers.
Given the size of the land position, Anglo expects the reservoir quality of the Nordegg Member to change depending on location.
