ACOR Is Developing from a Royalty Co. to an Exploration Company; Offshore Longtom Gas Field Estimated at 300 - 500 BCF.

CISCO, Texas -- Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF.OB) is pleased to announce that because of several exciting events such as; the giant oil discoveries adjoining PEL 112 to the North and East with no dry holes in between, the price of crude oil above $US50.00 per barrel and the 52% "Wildcat" drilling exploration success rate by new junior oil companies in the Cooper/Eromanga Basin. Australian-Canadian Oil Royalties Ltd. is wisely being transformed into an oil exploration company.

ACOR holds approximately 7,650,352 net working interests acres in the most prolific basins in Australia, located onshore in the Cooper/Eromanga Basin and offshore in the Gippsland Basin.

ACOR's President, instructed management to hire the very best Seismic & Geophysical team available in the Cooper/Eromanga Basin in order to begin a detailed exploration program on PEL 112 & 108. ACOR hired Andy McGee, a highly respected Geophysicist and Steven Tobin of Terrex Seismic. A crew of approximately 50 personnel will be working this spring and summer to perform the shooting & interpreting of the 190 kilometers of seismic on PEL 112 & 108.

ACOR management was in Australia this past month and spent two weeks of vigorous negotiations with the South Australian Government on PEL's 108, 109, & 112. ACOR management has been granted a variance that will allow for ACOR to take all the seismic money pledged on all three areas on PEL 108, 109, & 112 and spend the majority of the money to shoot 155 kilometers of Seismic on PEL 112 and 35 kilometers of seismic on PEL 108. Because of the excellent talent that ACOR has hired to explore on PEL 112 & 108, the South Australian Government has also agreed to allow ACOR to keep PEL 109 for possible future exploration at a later date.

PEL 112 has an approximately 4,000 barrel of oil per day producing fields (Christies & Sellicks) adjoining to the North of 112 and the approximately 4,000 barrel of oil per pay producing Warrior field adjoining 112 to the East.

ACOR is very excited about the current prospects mapped on PEL 112 and Mr. McGee & Mr. Tobin had some valuable suggestions to help ACOR get the best prospects shot on PEL 112 & 108. Our company and ACOR's President is spending approximately $AU940,000 on the seismic program.

ACOR owns a 50% working interest under PEL 112, 108, & 109.

Offshore Permit VIC/P60:

Permit 60 located in the Gippsland Basin and consists of 339,769 acres. 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. Mr. Roy Whiting, an expert Geophysicist is now working full time on the reinterpretation.

Mr. Whiting has reported to ACOR management that he has already identified several really good structures on Permit 60.

ACOR owns a 25% working interest in VIC/P60.

Offshore VIC/P54 Longtom Gas Field

The drilling of the Longtom #3 as an appraisal well is expected in September 2005 using the Ocean Patriot drilling rig. The drilling program will ensure the rapid appraisal of the field which if successful will lead to its early development. The well will be designed such that it can be suspended as a future commercial gas producer that can be rapidly bought into production. Final permeability results from the core recovered from Longtom #2 are very positive. Nexus' analysis indicates the upper sands at Longtom will flow at commercial rates in an appropriately drilled and completed well. Mapping and engineering studies indicate that the Longtom field contains commercial quantities of gas with potential large reserves upside.

Nexus has revised the recoverable gas volume estimates based on geological data obtained from the Longtom #2 well (including the core data recovered from the sidetrack). Current indications are that, based upon a successful Longtom #3 appraisal well, estimated potential Proved + Probable recoverable gas volumes at Longtom could be in excess of 300 Bcf, with estimated potential Proved, Probable and Possible gas volumes of up to 500 Bcf.

Victoria annually consumes approximately 220 Bcf of gas per year at a wholesale value of around $600 million.

The permeabilities obtained from special core analysis indicate the upper sands of the Longtom #2 well could potentially produce gas at rates in excess of that recovered from the Lower sands which flowed at approximately 19 million cubic feet per day during Test #1. Reservoir damage through drilling could have been the reason these sands did not flow. Alternatively, analysis of pressure data from Test #2 by Nexus indicates that the well may not have produced gas due to a mechanical malfunction of the test tools. Reservoir simulation studies completed by Nexus indicate that Longtom development wells will produce at commercial rates for a period of up to 10 years with out intervention. Nexus is considering several different development options for the Longtom gas field including the possibility of a stand alone development similar to the nearby Patricia Baleen field approximately 12 km away.

The objectives of the Longtom #3 well are to confirm the commercial gas flow and reserve potential of the upper sands of the Longtom reservoirs and the lateral extent of the lower sands by drilling horizontally through the reservoir. It is planned to suspend the well as a producer.

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

Kitson-1 well to spud April 21st on ACOR's ORRI under PEL 88:

Cooper Energy kicks off an exciting 2005 drill program with the Kitson-1 exploration well, which has undiscovered mean reserves of 5 million barrels of oil. Kitson-1 is located in PEL88 approximately 200 km north northeast of Moomba in South Australia, is expected to spud around 21 April 2005, take 18 days to reach the planned total depth of 2,205 meters and expected to cost $1.8 million.

The Kitson prospect consists of a large 2 fault closed structure, which at its crest contains 2 four way dip closed structures. Five zones of potential production are targeted in the Namur, Birkhead, Hutton, Poolowanna and Tinchoo formations. Should a reservoir be discovered in the Namur, then the fault closed structure is estimated to contain a recoverable oil reserve range of between 5 to 42 million barrels, with an estimated mean of 20 million barrels.

Cooper Energy CEO, Mike Scott said the company's exploration portfolio always has room for a few high risk-high reward wells like Kitson. "With the possibility of discovering up to an estimated 42 million recoverable barrels in a single reservoir plus the enormous upside of discovering multiple reservoir zones this undoubtedly has to be classed as a company making target.

"Should we have a discovery at Kitson there is an even larger target in PEL88 -- the Lancier prospect. Lancier lies 15 km to the west of Kitson and Cooper would intend following this up as soon as feasibly possible following a success on Kitson.

ACOR owns a larger ORRI under PEL 88, a 3/10ths of 1% ORRI.

ACOR's ORRI under ATP 299:

The Mulberry-2 in the Cooper/Eromanga Basin has been announced as a successful oil appraisal well. The well located on ATP 299, encountered four meters of oil pay in the 12-5 sand of the Birkhead Formation and has extended the Birkhead 12-5 oil pool 450 meters north/west of the Mulberry-1 discovery.

Mulberry-2 is the first of a three well appraisal drilling program designed to test the extent of and develop the reserves in the Mulberry pool. Mud logs encountered good shows and subsequent wire line logging indicated that it is likely to be productive. The well has been cased and suspended as a potential future oil producer from the Birkhead Formation and the rig released to prepare to drill the Mulberry-3 appraisal well.

More ACOR Updates:

As previously announced in the February 7th press release stating that the plant had funded and ACOR was set to receive gas revenue from Kentucky, the funding of the plant did not materialize as previously reported to ACOR management. According to the Kentucky operator, some working interest holders in the project did not accept the terms offered for the plant to be funded. The operator is seeking other means of funding the gas plant.

About Australian-Canadian Oil Royalties Ltd:

ACOR management draws no cash salary. ACOR has NO LONG-TERM DEBT.

ACOR's principal assets consist of 14,926,346 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 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 to see more information at: http://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.