The Ascender-1 Well Spuds on a Huge Six(6) Mile Undrilled Structure on ACOR’s ORRI with Potential Est. Reserves of 10 Million Barrels of Oil

CISCO, Texas--(BUSINESS WIRE)--Australian-Canadian Oil Royalties Ltd. (herein called ACOR) (OTCBB:AUCAF) is pleased to announce that the operator of PEL 111 has announced that the Ascender-1 well, the first well to be drilled in PEL 111 on ACOR’s ORRI spudded on September 20^th 2007.

The well is being drilled by the Ensign Rig #20 to a total depth of 6,889 feet. The Ascender structure has an aerial closure of 6.4 miles and is one of the largest undrilled structures in the prospects and leads inventory in this region. The operator estimates that the huge structure could contain approximately 10.5 million barrels of oil, if commercial hydrocarbons are present.

The Ascender prospect is a large low relief four way dip closed structure located approximately 15 miles to the north of the Growler and Wirraway oil discoveries. The structure is defined by a 2D seismic grid and is on a structural nose that plunges southeast into the Patchawarra Trough.

About PEL 111

PEL 111 is located in the prolific Cooper/Eromanga Basin and consists of approximately 292,819 gross acres. The prospect is 10 miles northwest of the Santos Charo oil discovery and 15 miles north of the recent Growler and Wirraway oil discoveries made by the same Joint Venture Partners in neighboring PEL 104 to the south. The prospect is located in the northern region of the Western Margin Oil Fairway.

The Charo oil discovery 10 miles to the south east is the first structure out of the Patchawarra Trough along this high trend. The primary targets are the Lower Birkhead, where oil has been recovered at Growler, Wirraway and Charo, and the Hutton and Namur Formations where oil has been recovered in the Christies and Callawonga Oil Fields to the south east.

ACOR owns a 10% of 1% ORRI under PEL 111.

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.