$171,000,000 Hostile Takeover Bid Officially Submitted - Attempting To Acquire VIC/P54 Longtom Gas Field on ACOR's ORRI.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the Longtom Gas Field on ACOR's VIC/P54 has become a hot property because of the fast-maturing status of its key developments in the Longtom Gas Field and a conditional gas contract signed with Santos to purchase up to 320 BCF of gas from the Longtom Gas Field.

Anzon Australia has lodged a $A171,000,000 bid for its all-share takeover offer for Nexus Energy. Nexus Energy is the operator of VIC/P54 on ACOR's ORRI. One of the main targets being sought in the attempted takeover bid is the revenue potential that exists within the Longtom gas Field, located on ACOR's ORRI under VIC/P54 in the Gippsland Basin.

Nexus Energy's managing director has rejected the hostile $171 million takeover bid from Anzon Australia Ltd, describing it as inadequate. Anzon expects to send the offer to Nexus shareholders in mid-April. The offer would then have a closing date of mid-to-late May but this could easily be extended. The terms of offer could also be changed. It is now up to the Nexus shareholders to decide.

ABOUT VIC/P54

The Longtom Gas Field is located in the Gippsland Basin and was discovered by BHP in 1995, but was considered sub-commercial (70-120 bcf) at the time due to the lack of maturity of the gas markets and the interpreted reservoir quality. A 386+ meter gas column was intersected in the Emperor Formation in Longtom-1.

Longtom-2 was drilled in late 2004. A 400+ meter gas column was confirmed within the structure. The lower reservoir section in Longtom-2 flowed at a stabilized rate of 18-19 mmcf/day over a 12 hour period - an excellent result confirming the commercial potential of the previously untested lower reservoir section in Longtom. The upper reservoir section did not flow gas to surface - two third party engineers confirmed a subsurface test valve did not open; hence the well could not flow against the closed valve. A core from the upper reservoir section was taken and analyzed, confirming an excellent reservoir section highly capable of flowing gas. No gas-water contact has been intersected at Longtom to-date, suggesting deeper reservoir potential exists.

While Longtom-2 pointed to mechanical problems as the cause of poor flow rates from the main reservoir, seismic reprocessing and amplitude variation with offset (AVO) work indicates a strong gas anomaly in these sands as well as an untested anomaly in sands above the primary zone. Thus, Longtom-3 will be a multi-purpose appraisal seeking confirmation of the lateral extent of the lower reservoir as well as exploration of the anomaly higher in the stratigraphic column.

A good result from Longtom-3 appraisal well would clarify the independent assessment from Gaffney Cline & Associates for the Longtom Gas Field to possibly contain estimated reserves of 316 billion cubic feet and possibly add a further 250 billion cubic feet, which at the moment is listed as possible in the upper reservoir.

ACOR's ORRI under VIC/P54 is located in the prolific Gippsland Basin of the Bass Strait and consists of 155,676 gross acres.

Longtom-3 Well

Should the takeover attempt fail, ACOR is pleased to announce that the current operator of VIC/P54 has successfully raised $44.2 million. A portion of the capital raised will enable the operator to rapidly progress the commercialization of the Longtom Gas Field. The Longtom-3 well is expected to drill by May or June of 2006.

About The Gippsland Basin:

In excess of 4 billion barrels of oil/condensate and 12 TCF gas reserves have been discovered in the Basin since exploration drilling began in 1964, with remaining reserves estimated at 600 million barrels of oil and 5 trillion cubic feet of gas. Current production of the basin is around 140,000 barrels per day of crude and 570 million cubic feet per day of gas.

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. Preliminary engineering studies suggest 2 wells (Longtom-3 and 4) will be sufficient to drain the contracted 320 BCF gas. Further development wells would be required for reserves beyond this. The wells will be completed sub-sea, connected via a manifold and piped 12 km to Patricia Baleen facilities. Santos will process and purchase the gas from this point. The gross estimated capital expenditure is expected to be approximately $A160 million, including the cost of drilling and completing the Longtom-3.

Summary

ACOR anticipates that the ORRI under VIC/P54 will prove to be a substantial resource capable of delivering significant long term cash flow and value for our shareholders.

ACOR owns a 1/20th of 1% ORRI under VIC/P54.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,293,450 gross surface acres of overriding royalty interest and 8,900,776 gross acres of working interests, located Onshore Australia in the Cooper-Eromanga Basin and Offshore Australia in the Gippsland Basin in the Bass Strait.

ACOR is a publicly traded oil company trading on the NASDAQ OTC Bulletin Board Exchange under the trading symbol "AUCAF."

Summary:

Australia is a "hot spot" for oil & gas exploration and ACOR is positioned for possible "Company-Maker" discoveries. ACOR's working interest and overriding royalty interest are located offshore & onshore in the best producing basins.

Visit our website at www.aussieoil.com.

Disclaimer:

Except for historical information contained herein, the statements released are forward-looking statements that are made pursuant to the provision of the Private Securities Litigation Reform Act of 1955. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.