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The Largest Continuous Onshore Drilling Program Ever in Queensland Australia May Get Bigger - $50 Million Dollar / 51 Well Drilling Program Planning to Add 20 More Wells to Drill on ACOR's ORRI Under ATP-299

Posted on: Thursday, 27 July 2006, 12:01 CDT

Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) reports that the JV partner of ATP-299 is pleased to announce that following the continued success of the Tintaburra drilling program, planning has commenced to add around 20 additional wells to the current program. The current 51 well program has been revised down by 1 well to fifty 50 wells but with the addition of 20 wells the program is expected to total 70 wells.

One of the latest reports from the JV partner stated that of the twenty-eight (28) wells drilled to date, eleven (11) have been placed online as oil producers and one (1) as a water injection well. Eleven (11) wells are cased and suspended, awaiting production test. Five (5) wells have been plugged and abandoned with 23 wells yet to be drilled in this first phase of the Tintaburra drilling program. This does not count the additional 20 wells planned to be added on ACOR's ORRI.

Rig PDI-735 spudded Talgeberry 13 on July 19th. Oil shows were encountered while drilling through the reservoir units of the Wyandra Formation, the Murta member, and the Birkhead Formation. Wireline logs indicated a total of 36 feet of net oil pay. The well was cased and suspended as a future oil production well and the rig was released to the Talgeberry 9 location on July 23rd.

Rig PDI-724 spudded the Endeavour 7 well on July 15th. Endeavour 7 encountered oil shows while drilling through the Birkhead reservoir section and wireline logs indicated 23 feet of net oil pay. The well was cased and suspended as a future oil production well; the rig was then released to the Endeavour 6 location on July 21st. Endeavour 6 well spudded on July 23rd. Endeavour 6 has encountered oil shows in the Westbourne and Birkhead Formations. Forward operations will run wireline logs to evaluate the reservoirs.

Rig PDI-721 spudded the Minni-Ritchi 1 well on July 20th. Minni-Ritchi encountered good oil shows in the Birkhead reservoir unit and evaluation of this zone with wireline logs is planned.

The Tintaburra drilling program on ACOR's ORRI is the largest continuous oil development and exploration drilling program ever undertaken in SW Queensland with three (3) modern rigs drilling and casing wells at around seven (7) days per well.

About The Tintaburra Oil Field:

Mulberry 1 was drilled in 2004 and is producing oil at a rate of approximately 600 barrels of oil per day. The 51 wells 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-Gimboola-Endeavour Field is 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.

Source: Business Wire

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