67 Wells Drilled to date in 2006 - 77% Successful with an additional 81 Wells Planned in 2007 on ATP-299 - The Largest Onshore Continuous Drilling Program Ever in Australia on ACOR's ORRI.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) reports that the JV partner of ATP-299 has announced that the 2006 $50 Million Dollar - 70 well drilling program on ATP-299 on ACOR's ORRI is considered to be a tremendous success with a 77% success rate from its participation in 69 wells in the block so far this year. The 2006 drilling program is still continuing with the Endeavour 21 well being cased as a new oil producer.

2007 Drilling Program (81 Additional Wells) on ACOR's ORRI

The JV partner is so pleased with the results that they have announced an additional 81 wells are planned to be drilled in 2007 on ATP-299 on ACOR's ORRI, although the program may vary depending on results.

The breakdown of the 81 wells planned to be drilled on ATP-299 are as follows:

Co Endeavour Oil Field - 22 Wells

Co Mulberry Oil Field - 20 Wells

Co Talgeberry Oil Field - 9 Wells

Co Gimboola Oil Field - 2 Wells

Co Chancett Oil Field - 1 Well

Co Tintaburra Oil Field - 27 wells

About The Tintaburra Oil Field:

The 2006 (70 well) Tintaburra drilling program plus the planned 2007 (82 well) drilling program on ACOR's ORRI is the largest continuous oil development and exploration drilling program ever undertaken in Australia with two (2) modern rigs drilling and casing wells at around ten (10) days per well.

The wells to be drilled are designed to achieve additional oil production and to test the extent of the oil pool in the Birkhead 11-77 sand discovered in the Mulberry 1 well.

The Mulberry 1 well, located on ATP-299 was drilled in 2004, and the well came in with an initial potential of approximately 600 barrels of oil per day. ATP-299 is located in the prolific Cooper/Eromanga Basin.

The Mulberry, Endeavour, Talgeberry, Gimboola & Chancett Oil Fields are all part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299 and is estimated to contain around 84 million barrels of proved plus probable oil in place or approximately $5,036,640,000, at current market prices.

ACOR owns .0575 of 1% ORRI under ATP-299.

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 interests and overriding royalty interests 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.