ACOR to acquire onshore assets in Australia

Australian-Canadian Oil Royalties (ACOR) has signed agreements with two private Australian companies and a private Canadian company to acquire onshore assets in the Surat Basin in Queensland, Australia.

The company will acquire a 100% working interest in Petroleum Leases 18 and 40 and a 50% working interest in Petroleum Lease 280.

The assets include five oilfields: Yellowbank Creek, Thomby Creek, Louise, McWhirter, Narrows and Beardmore.

ACOR will issue 21.85 million common shares and five million share purchase warrants and will pay $3m within 12 months of the closing of the acquisition.

ACOR will also pay an overriding royalty of 3% on production attributable to Petroleum Leases 18, 40 and 280 to the vendors.

The acquisition is subject to completion of the proposed financing, where ACOR will sell its six million common shares for $2m, and other customary closing conditions.