$50 million dollar - 51 well drilling program

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$50 Million Dollar - 51 Well Drilling Program On ACOR's ORRI - 1st Five (5) Wells Strike Oil - Averaging 100% Success - Mulberry-14 Is Successful (w/Strongest Oil Shows) on the $5 Billion Dollar Potential Oil Field
CISCO, Texas--(BUSINESS WIRE)--April 7, 2006--Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of ATP-299 has successfully drilled and completed the Mulberry-14, this is the 5th successful well to be completed as a Birkhead oil producer of the 51 planned wells. Mulberry-14 will be completed in the Birkhead Formation after the well encountered strong oil shows in mud logs over the interval 1,241 to 1,257 meters. The oil shows were described as 40% to 60% bright yellow/green spotted to patchy fluorescence, fast steaming cut with a thick film of residue. This represents a significant extension of the Mulberry Oil Field. Following wireline logging a more detailed reservoir analysis will be performed on Mulberry-14. The total depth of the Mulberry-14 is 1340 meters. The location of Mulberry-14 is approximately 430 meters south/east of the Mulberry-3 well and 650 meters east of the Mulberry-9 well.


Since it began in Feb 2006, the largest program of continuous oil drilling ever undertaken in the southwest Queensland section of the Cooper/Eromanga Basin is off to a fantastic start with the successful completion of the first five wells (Mulberry-6, Mulberry-7, Mulberry-8 and Mulberry-9) of the 51 wells to be drilled. All the wells encountered fair to good oil shows in mud logs in the Birkhead Formation.

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 Tintaburra Oil Field contains significant proved undeveloped oil reserves and exploration up side.

ACOR's ORRI under ATP-299 will help build ACOR's ORRI revenue in the Cooper/Eromanga Basin.

The Mulberry Field is part of the Tintaburra Oil Field on ACOR's ORRI under ATP-299. The Tintaburra Oil Field 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.

12 New Wells To Be Drilled This Year Almost Surround ACOR's Large Working Interest Holding -- PEL 112; The 1st Two Wells of 12 Wells Strike Oil

The operator on the adjoining area to the north of ACOR's PEL 112 advises that the Christies-4 well will be cased and suspended after encountering oil pay in the Hutton and Namur Sandstone. DST 1 was a misrun, and the results of DST 2 conducted on March 24th 2006 were an initial potential of 653 BOPD. Christies-4 was drilled to appraise the south eastern extent of the Birkhead/Hutton oil pool discovered in July 2003. It is the first of two Christie's wells in this program. The Christies-5 spudded on March 30th and is approximately 1376 meters, drilling to a total depth of 1840 meters. The Christies-5 has intersected the Namur payzone, the formation will be further evaluated for hydrocarbons by wireline logs. Christies-5 will appraise the northwest extent of the Birkhead/Hutton oil pool discovered in July 2003. Christies-5 is located approx. 200 meters northwest of Christies-1 and 300 meters north of Christies-2.

The Christies Oil Field has confirmed that the oil entrapment model for the southern Queensland flank, like the Tintaburra/Mulberry Oil Field on ATP-299 is applicable in the area of PEL 112. The Christies structure appears to be fully charged, with oil now proven in various stacked reservoirs.

The drilling of Christies-2 and Christies-3 has resulted in two new pool discoveries within the Namur Sandstone, as well as improved reservoir potential within the main reservoir, the Birkhead Formation and Hutton Sandstone. Each of the zones tested gave good oil flows. The wells had initial potentials of 3600 BOPD on clean up flow from the Namur Formation.

The current production on the adjoining area to the north, not counting the new Christies-4 well is averaging a reported $33,000,000 a year gross on the adjoining block to the north of PEL 112.

Worrior-4 was drilled on March 17th and was completed as an oil producer; the well adjoins PEL 112 to the east. The Worrior-4 has been tied into the Worrior Oil Field facilities. The initial 18 hour rate of the Worrior-4 was reported at 1,660 BOPD with negligible water from the McKinlay formation. Worrior-4 encountered oil bearing reservoirs in the McKinlay and Birkhead Formations as expected.

The current production on the adjoining area to the east, not counting the new Worrior-4 well is averaging a reported $75,000,000 a year.

The wells are approximately 6,000 feet deep and cost around $1.5 million dollars to drill and complete.

This is some of the most profitable production in onshore Australia, and ACOR is in the middle of it.

PEL 112 covers 818,904 acres and has never been drilled on (no dry holes) and is located in the Cooper/Eromanga Basin of South Australia. ACOR has just 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 28 smaller ones. The two large seismograph highs are called C-23 & C-26, which cover a combined area of approx. 5,534 acres with excellent closure.

ACOR is currently getting drilling bids for the 2 best drilling locations identified by seismic.

ACOR owns 41.5% WI under PEL's 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 15,293,450 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 ACOR is 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 at www.aussieoil.com.