12 New 2006 Wells To Be Drilled - All Adjoin ACOR's 41.5% WI PEL 112 - The 1st Three (3) Wells of 12 Wells Strike Oil - Avg 100% Success - 5th Well Delray-1 Spuds.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator advises that the 5th well of the 12 wells to be drilled has spudded. The Delray-1 well adjoins ACOR's PEL 112 to the east. The Delray-1 well will target the Namur Formation, with estimated reserves of approximately 3 million barrels of oil. The 4th well, the Silver Sands-1 well spudded on Friday, the Silver Sands-1 well adjoins ACOR's PEL 112 to the north. The Silver Sands-1 a near-field exploration well located approximately 1.5km to the southeast of the Christies oil field and is targeting the Namur and Birkhead/Hutton oil reservoirs, with the Poolowanna as a secondary target. Both wells are expected to take approximately 14 days to drill and test.

The operator on the adjoining area to the north of ACOR's PEL 112 advises that the Christie-5 well will be cased and suspended after encountering oil pay in the Birkhead and Namur Formation with an initial potential of 403 BOPD. DST-1 across the interval 1,626m to 1,636m in the Birkhead Formation, resulting in a flow of 85 BOPD of oil through a 1/4" choke. DST-2 was run across the interval 1,377m to 1,382.5m in the Mid Namur reservoir, resulting in a flow of 318 BOPD of oil through a 1/4" choke. Christies-5 has successfully extended the northwest extent of the Birkhead/Hutton oil pool in the prolific Cooper/Eromanga basin discovered in July 2003. Christies-5 is located in the approx. 200 meters northwest of Christies-1 and 300 meters north of Christies-2.

The Christies-4 well was cased and suspended after encountering oil pay in the Hutton and Namur Sandstone. DST 1 was a misrun, the results of DST 2 conducted on March 24th was an initial potential of 653 BOPD.

The Christies Oil Field has confirmed that the oil entrapment model for the southern Queensland flank, like the Tintaburra/Mulberry Oil Field on ACOR's ORRI under ATP-299 is applicable in the area of ACOR's PEL 112. The Christies structure appears to be fully charged, with oil now proven in various stacked reservoirs. The drilling of Christies-2 and Christies-3 has resulted in two new pool discoveries within the Namur Sandstone, as well as improved reservoir potential within the main reservoir, the Birkhead Formation and Hutton Sandstone. Each of the zones tested gave good oil flows. The wells had initial potentials of 3600 BOPD on clean up flow from the Namur Formation.

The current production on the adjoining area to the north, not counting the new Christies-4 & Christies-5 wells is averaging a reported $33,000,000 a year gross on the adjoining block to the north of PEL 112.

The Worrior-4 was drilled on March 17, 2006 and was completed as an oil producer; the well adjoins PEL 112 to the east. The Worrior-4 has been tied into the Worrior Oil Field facilities. The initial 18 hour rate of the Worrior-4 was reported at 1,660 BOPD from the McKinlay formation. Worrior-4 encountered oil bearing reservoirs in the McKinlay and Birkhead Formations as expected.

The current production on the adjoining area to the east, not counting the new Worrior-4 well is averaging a reported $75,000,000 a year. The wells are approximately 6,000 feet deep and cost around $1.5 million dollars to drill and complete.

Why are we talking about the Wells that adjoin ACOR's PEL 112?

Take the smallest of the recent discoveries and multiply (x) it by $70.00 per barrel, current market price of crude oil times (x) 30 days, times (x) 12 months and apply it to ACOR's PEL 112 (x) 41.5% Working Interest and see the results for yourself. Now do the same with the largest discovery that adjoins ACOR's PEL 112.

Smallest Discovery so far, Christies-5  IP403 BOPD

Largest Discovery so far, Warrior-4     IP1,660 BOPD

Now you can see why ACOR management is so excited about all the drilling activity that is going on adjoining ACOR's PEL 112 to the north and east. In our opinion, any one of the recent discoveries from the smallest to the largest could be a possible "Company-Maker" discovery for our company, if discovered on PEL 112.

This is some of the most profitable production in onshore Australia, and ACOR is in the middle of it.

ABOUT PEL 112

ACOR has invested approximately 5 years of time and several million dollars on PEL's 112, 108, & 109.

PEL 112 covers 818,904 acres and has never been drilled on (no dry holes) and is located in the Cooper/Eromanga Basin of South Australia. ACOR has just completed a new seismic survey on PEL 112 at a cost of approximately $1,100,000. The new seismic survey has discovered two large seismograph highs as well as 28 smaller ones. The two large seismograph highs are called C-23 & C-26, which cover a combined area of approx. 5,534 acres with excellent closure.

ACOR is currently getting drilling bids for the 2 best drilling locations identified by seismic. The drilling locations for C-23 & C-26 have now been staked and the photos of the locations are available on our website.

ACOR owns 41.5% WI under PEL's 108, 109, & 112.

About Australian-Canadian Oil Royalties Ltd.:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT. ACOR's principal assets consist of 15,440,116 gross surface acres of overriding royalty interest and 8,561,007 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.