VIC/P54 Operator Estimates that Longtom Gas Contract &

Condensate Are Equivalent to Approximately 57 Million Barrels of Oil or 
$2,800,000,000 on ACOR's ORRI 
Longtom 4 Well to Drill in 2007 
CISCO, Texas--(BUSINESS WIRE)--January 25, 2007
Australian-Canadian Oil Royalties Ltd. (herein called ACOR)
(OTCBB:AUCAF) is pleased to announce that the operator of VIC/P54
states in their annual report that their best estimate of the 350
petajoules (PJ) gas contract along with the 4 million barrel
condensate from the drilling of the Longtom 3 well on ACOR's ORRI is
equivalent to approximately 57 million barrels of oil or approximately
$2.8 Billion Dollars, using current market prices. 
In 2006, the operator of VIC/P54 signed a $1 billion gas contract
with Santos Ltd, which provided the commercial platform to appraise
Longtom. The contract calls for the delivery of 350 PJ of sales gas
from the Longtom field at an agreed price. If Longtom produces in
excess of 350 PJ of gas, a joint marketing agreement exists for sales
of a further 100 PJ of gas from Longtom at market prices. 
The result of Longtom 3 well drilled in 2006 has given the
operator more confidence that they not only have significant gas
resource, but they have more than adequate production on a per well
basis to justify a commercial development. 
First gas from Longtom Gas Field on ACOR's ORRI is currently
expected to flow in mid-2008. VIC/P54 consists of 155,676 gross acre
and is located offshore Australia in the prolific Gippsland Basin. 
The conversion rates used for the best estimates figures stated
above for the Longtom gas field are 1 barrel of condensate is equal to
1 barrel of crude oil equivalent and 6.6 PJ is equal to 1 million
barrels of oil equivalent. These figures are taken from the operator's
annual report. In 2005, the internationally recognized consultants
Gaffney Cline and Associates (GCA) increased their Best Estimate of
Longtom Contingent Gas Resources by 38% to 438 Bscf. 
About the Longtom Gas Field 
The permit VIC/P54 contains the Longtom gas field which was
discovered by BHP Billiton in 1995 but was considered non-economic.
The Longtom 1 discovery well intersected a 1,266 foot gas column in
the Emperor formation, which was confirmed in the Longtom 2 appraisal
well drilled by Nexus in late 2004 Longtom 2 intersected a 1,312 foot
plus gas column. 
On test the lower reservoir section flowed at a stabilized rate of
18-19 MMscf/d over a 12 hour period. However the upper reservoir
section did not flow gas to surface after the failure of a sub-surface
valve in the well bore although a core cut from the well confirmed an
excellent upper reservoir section highly capable of flowing gas. 
The Longtom 3 well, drilled in July 2006, confirmed the commercial
potential of the Longtom field when an estimated flow rate of over 75
MMscf/d was recorded during the second production test over reservoir
sections including the upper sand which did not flow in the Longtom 2
well. The Longtom 3 well intersected a total of 3,379 feet of gross
gas reservoir on ACOR's ORRI. 
Longtom 3 was tested through a production completion and Xmas tree
leaving the well ready for production without requiring any further
rig intervention. The Longtom 3 appraisal well was part of a sole risk
appraisal program operated by Nexus. 
From deepest to shallowest, the gas bearing reservoir units in the
Longtom field are named the 100, 200, 300, 400 and 500 sands. The
reservoirs appear to be connected to a series of vertically separate,
but laterally connected, common aquifers. 
Two production tests were conducted on the Longtom 3 well were
highly successful. The first test produced gas from the 400 sand at 23
MMscf/d. These results confirmed the flow potential of the (upper) 400
sand reservoir in the Longtom field, addressing the concern from the
Longtom 2 well where a gas flow was not achieved due to the valve
The second test, over the 100, 200 and 300 sand intervals exceeded
expectations producing an estimated 77 MMscf/d when bypassing the test
separator and 59 MMscf/d when flowing through the test separator. 
Longtom Gas Field Could Be Bigger 
The Longtom 3 appraisal well in VIC/P54 has confirmed the
potential for gas charged sands in the Admiral Formation along the
northern margin of the Gippsland Basin to flow gas at commercial rates
and has opened up a new exploration play in this area. 
The drilling of the well has also confirmed the viability of a new
technique for defining exploration targets in this area. The
horizontal section of the Longtom-3 appraisal well was drilled along a
sinusoidal path, specifically designed to target seismic amplitude
anomalies, which were interpreted to correspond to thin gas charged
sands within the Longtom Field. 
The technique proved to be very successful in predicting the
presence of gas sands within the field and further analysis of the 3D
seismic data has highlighted the potential for several other
exploration targets close to the Longtom Field, which are
characterized by similar seismic anomalies. 
The most significant of these is a shallower exploration target
that directly overlies the Longtom field and has a very similar, well
defined seismic anomaly on the 3D seismic data. 
The 'Longtom Upper' sand is expected to extend over an area of
approximately 8 miles and be as thick as 131 feet in certain areas.
The possible resource potential of the Longtom Upper sand is
approximately 250 BCF of gas and will be tested by a future well. If
successful, these sands could be readily integrated into a Longtom
development at modest additional cost. 
ACOR owns 5% of 1% ORRI under VIC/P54. 
About The Gippsland Basin: 
In excess of 4 billion barrels of oil/condensate and 12 TCF gas
reserves have been discovered in the Basin since exploration drilling
began in 1964, with remaining reserves estimated at 600 million
barrels of oil and 5 trillion cubic feet of gas. Current production of
the basin is around 140,000 barrels per day of crude and 570 million
cubic feet per day of gas. At peak rates, the Gippsland Basin can
deliver more than 1,000 million cubic feet a day. 
Some of the very best oil production in the world is found in the
Gippsland Basin. Take for example, the Halibut Oil Field. The average
well in the Halibut Oil Field has produced 60,000,000 bbls of oil per
well or $3,000,000,000 worth of oil per well, at current crude market
More Good News on ACOR Gippsland Basin Assets: 
About VIC/P45: 
$22 Billion Oil Company Apache Becomes Operator of ACOR's ORRI
under VIC/P45 
Apache begins shooting additional 3D Seismic on VIC/P45 in March
and Drilling the 1st well later this year. 
VIC/P45 consists of 214,896 gross acres. VIC/P45 is located
offshore in the most prolific oil-producing basin in Australia,
approximately 1 1/2 miles east of the Kingfish Oil Field in the
Southern Gippsland Basin in the Bass Strait. 
The Kingfish Oil Field, the largest oil field in Australia, has
produced 1,100,000,000 barrels of oil since its discovery. There are
currently 23 producing wells in the field. The permeability in the pay
section ranges between 5,000 and 40,000 millidarcies, which is
extremely high. On mapping there are 14 structures on VIC/P45, which
includes one oil and gas field discovery with 16 pays and over 1,000
feet of pay section and a second with one gas pay section. This was a
discovery well drilled off projected prospects. 
Apache has agreed to pay 100% of the cost to drill the 1st well;
in return Apache will earn a 66.6667% working interest. Depending on
the results from the 1st well, Apache may elect to drill a second well
and pay 100% of the cost to drill the second well. In addition, Apache
has undertaken to assume its share of Royalty obligations to third
parties. Apache will begin to select the drilling location for their
1st well. 
IMI, an independent third party geological appraisal company
estimated that VIC/P45 could possibly contain approximately 350
million barrels of oil and 4 TCF of gas. 
ACOR owns a 7.5% of 1% ORRI under VIC/P45. 
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." 
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 
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. 
Australian-Canadian Oil Royalties Ltd.
Investor Relations, 254-442-2638
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