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Cleansweep-1 Well to Spud This Week on ACOR's 1% W.I. With Possible Est. Reserves of 4,800,000 Barrels of Oil or $384,000,000 at Current Crude Oil Prices

Posted on: Monday, 8 October 2007, 12:00 CDT

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the joint venture partner announced that the Cleansweep-1 exploration well in PEL 100 will commence drilling this week.

Primary oil targets in Cleansweep-1 are the Paning, Birkhead/Hutton and Poolowanna Formations with the Tinchoo Formation as a secondary target.

The Cleansweep-1 well will target un-risked mean oil in place of 4.8 million barrels, if commercial hydrocarbons are present.

The structure is a relatively simple four way dip closure at the southern end of a structural ridge. The basement is faulted down to the Patchawarra Trough on the southeast flank of the structure, providing a conduit for migrating hydrocarbons from the Permian. Closure is mapped at the top of the Birkhead Formation and at the Top Basement horizons.

About PEL 100

PEL100 covers approximately 145,569 gross acres and lies towards the north-east corner of South Australia on the northern margin of the Cooper Basin.

PEL100 has the full section of Cretaceous, Jurassic and Triassic formations. The southern portion of the block has the addition of some Permian formations. The Jurassic and Triassic formations are the main exploration targets within the block.

The Keleary and Telopea Oil Fields are located immediately to the east of the block, indicating a potential migration pathway into adjacent structures. The Keleary & Telopea Oil Fields together have produced in excess of 2,000,000 barrels of oil or $160,000,000 at current crude prices. The Keleary Oil Field encountered four commercial zones in three separate formations (Basal Birkhead/Hutton, Poolowanna and Tinchoo Formations), while the Telopea Oil Field encountered commercial oil in the Tinchoo Formation.

The Tarragon-1 discovery is located in PPL121, which lies in the western portion of the block. The Tarragon-1 flowed 2080 BOPD from the Tinchoo and Hutton formations.

ACOR owns a 1% Carried Working Interest under PEL 100 in this well

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.

Source: Business Wire

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