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Cleansweep 1 Discovers Oil Shows on ACOR's 1% W.I. With Possible Est. Reserves of 4,800,000 Barrels of Oil or $456,000,000 at Current Crude Oil Prices

Posted on: Thursday, 1 November 2007, 12:00 CDT

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the joint venture partner states that the Cleansweep 1 exploration well has drilled into the basal Birkhead Formation where oil shows were observed over the interval 6,981 feet-6,998 feet.

The oil shows were accompanied by oil in the drilling mud and elevated gas readings of 300 units on a background of 10 units.

Current operations are preparing to run Drill Stem Test 1 over the interval.

Cleansweep 1 is targeting un-risked mean oil in place potential of 4.8 million barrels in the Birkhead/Hutton, Poolowanna and Paning formations.

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

PEL 100 covers approximately 145,569 gross acres and lies towards the north-east corner of South Australia on the northern margin of the Cooper/Eromanga Basin.

PEL 100 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 # 2 well came in with an IP of 6,000 BOPD. The Keleary oil well adjoining PEL 100 to the east has produced 1,200,000 barrels of oil or $114,000,000 at current crude prices from one well and is still producing.

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 well 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.

The operator of PEL 100 is also the operator of the giant discoveries adjoining ACOR's 13.83% WI PEL 112 to the east. ACOR and this operator used the same geophysicist and seismic company in discovering the following wells on the adjoining areas to the east.

Worrior-1 well came in with an initial potential of 2800 BOPD.

Worrior-2 well came in with an initial potential of 2000 BOPD.

Worrior-3 well came in with an initial potential of 276 BOPD.

Worrior-5 well came in with an initial potential of 250 BOPD.

Worrior-6 well came in with an initial potential of 2300 BOPD.

The operator of PEL 112 has scheduled the Hunt #3 drilling rig for an anticipated spud date of November 15th, 2007. This represents one of ACOR's possible biggest revenue generating opportunities.

PEL's 108, 109, & 112 are located in South Australia in the prolific Cooper/Eromanga Basin. The Operator has agreed to drill and complete three exploratory wells in the northern section of PEL 112. Site locations have been predetermined and road access is now completed.

PEL 112 covers approximately 818,904 gross acres, and has never been drilled on. All the wells are approximately 6,000 feet deep and cost around $1.5 million dollars each to drill and complete.

ACOR owns a 13.83% Working Interest in PEL's 108, 109 and 112 with a combined gross acreage of 1,325,715. ACOR's carried working interest in the 1st three wells will exclude ACOR from all exploration and completion costs, after which, ACOR will pay it proportionate part of the drilling and exploration cost.

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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