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Giant Oil Discoveries Adjoining ACOR's 13.83% W.I. PEL 112 Results in the Building of a $A7,600,000 Oil Pipeline-New Oil Field Discovery Adjoining PEL 112 As Parsons-1 Well Strikes Oil

Posted on: Wednesday, 28 November 2007, 09:00 CST

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of PEL 92 is building an approximate $A7.6 million dollar pipeline to transport oil from the New Oil Field Discovery Callawonga Oil Field for ultimate delivery to Port Bonython.

The Callawonga Oil Field is expected to deliver around 5000 barrels of oil a day to the markets on completion in the next month or so. Its role as a trunkline from the West Patchawarra Flank directly to markets is now assured and the costs of transport will now be reduced significantly.

The approximately 29 mile pipeline would help mitigate any trucking downtime due to weather. This pipeline is currently being constructed and on schedule for completion and commissioning early next year. Crude Oil from the Callawonga oil field will continue to be trucked to Tantanna and Moomba until the pipeline is operational.

About the Callawonga Oil Field

The Callawonga Oil Field is located on PEL 92 in the prolific Cooper/Eromanga Basin and adjoins ACOR's 13.83% working interest under PEL 112 to the North. The Callawonga-2 well will now be tied into the Callawonga facilities and is anticipated to contribute to production from the Callawonga Oil Field from October onwards.

The Callwonga-1 well was drilled in July 2006, the well encountered 26 feet of net oil pay in the Namur Sandstone and flowed oil on drill stem test at a rate of an initial potential of 2,400 bopd. The Callwonga-1 well has produced approximately 250,000 bbls of oil to date or approximately $17,500,000 at current crude oil prices.

On September 11, 2007, the Callawonga-2 flowed oil from the Namur Sandstone at an estimated rate of an initial potential of 4,992 barrels of oil per day through a 2" choke with 250 psi surface flowing pressure. On October 3, 2007, the Callawonga-3 well was drilled to a total depth of 6,374 feet and intersected 16 feet of oil pay section in the Namur reservoir. The clean-up flow rate for the Namur reservoir in the Callawonga-3 well was 5,660 barrels of oil per day with no water through a 2" line with a wellhead flowing pressure of 500 psi.

New Oil Field Discovery Adjoining ACOR's 13.83% W.I. PEL 112

The Parsons-1 exploration well spudded on November 17th 2007. The Parsons-1 well is located in PEL 92, which adjoins ACOR's PEL 112 in the Cooper/Eromanga Basin. The prospect is located approximately 5 miles west-northwest of the Christies Oil Field and 4 miles west-southwest of the Callawonga Oil Field. The well's primary objectives are the Namur, Birkhead and the Hutton formations, all of which are productive reservoirs at Christies.

The well was drilled to a total depth of 5,961 feet. The JV Partner said that wireline logs indicated that the Parsons-1 well intersected roughly 39 feet of gross oil column in high porosity Namur formation sandstones. The operator said the field was likely to contain more than 1 million barrels of recoverable oil.

The Operator stated that the reservoir quality in the Parsons-1 well is comparable to that present at the Callawonga Oilfield where the Namur Sandstone in Callawonga-3 flowed oil at a rate of 5660 barrels per day during a clean-up flow.

The Parsons-1 well is close not only to the Callawonga field, but also to the Christies and Sellicks oil discoveries, that also adjoin ACOR's PEL 112.

All four Oil Field Discoveries adjoining ACOR's PEL 112 are on the western Cooper Basin's West Patchawarra flank, an area virtually ignored by earlier explorers that is now becoming recognized as a significantly productive area in the Basin.

The Operator states: "This latest discovery confirms our belief in the potential of this under-explored region of the Cooper-Eromanga Basins. The region now deserves recognition as a significant oil sub-province of the basins."

On finalization of the Parsons-1 wireline logging program, the well will be completed as a future oil producer.

About PEL 112

On October 17th, ACOR announced that 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.

The Operator of PEL 112 has informed ACOR Management that the spud date was delayed by approximately 30 days. Heavy rains washed away part of the new road that was built for the drilling rig to move on to the new drilling locations and had to be repaired and one last South Australian Governmental Review of the Drilling Permits.

The Operator of PEL 112 has assured ACOR Management of no more expected delays, the Hunt drilling rig has been confirmed to begin drilling as soon the Operator of PEL 112 is ready.

The Operator of PEL 112 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. All the wells are approximately 6,000 feet deep and cost around $1.5 million dollars each to drill and complete.

PEL 112 covers approximately 818,904 gross acres, and has never been drilled (no dry holes). ACOR and partners have 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 24 smaller ones. The 2 large seismograph highs are called C-23 & C-26, which cover a combined area of approx. 5,534 acres with excellent closure.

ACOR and partners have invested approximately 6 years and several million dollars in PELs 112, 108, & 109. ACOR management is very excited to have negotiated a 3-well carried position over the 3 areas, which substantially reduces the Company's risk.

The 13.83% Carried Working Interest has potential to bring substantial revenue into the Company, should any or all of the three wells drilled prove to be commercial.

ACOR's carried working interest in the 1st three wells will exclude ACOR from all exploration and completion costs.

The Closest Oil Field to PEL 112

ACOR management has discovered that its nearest producing field, the Tantana Oil Field, has produced approximately 7,340,646 barrels of oil from twelve (12) wells, at today's crude prices that equals approximately $623 Million Dollars or $52 Million per well. The Seismic line 85-XAB shows a possible look-alike structure on ACOR's PEL 112 similar to the Tantana Oil Field.

ACOR owns a 13.83% Carried WI through the first 3 wells under PELs 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 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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