ACOR Announces Approximately 25 Wells Have Been Connected With Atmos Natural Gas Gathering System On ACOR's 10% Working Interest In The Park City Kentucky Gas Field

Cisco, TX - Australian-Canadian Oil Royalties Ltd. is pleased to announce that twenty five (25) out of thirty four (34) of ACOR's existing gas wells operated by Resource and Energy Technologies Company (RETCO) are currently being connected to a natural gas gathering system owned by a unit of Atmos Energy Corporation and to a gas processing facility, and operated by RETCO.

The gas plant is completely finished. It is still in Oklahoma waiting to be transported to the plant site in Kentucky. The multi-day transport to Kentucky will begin near the end of this month. The plant skids will be transported on 23 semi's. Both of the gas plant towers - the 95' and the narrower 50' - have been delivered to the plant site and the lower section of the larger tower has been set upright on its pedestal.

The packing material has also been placed inside. The foundations are being framed and poured. Most of them are now complete. The electrical grounding crew has finished burying the copper wire around the perimeter of the plant.

Texas Gas has completed the hot tap into their 8" high pressure gas line which runs through the plant site. They have also delivered their sales gas meter-run skid to the plant site.

After the plant arrives in about three weeks, the fabricator will need between two and four weeks to plumb all the different skids and plant sections together, before turning on the switch, later next month.

The first of the 34 well-head meter-run skids have arrived and have been installed with the latest electronic meters and telecommunications equipment, along with the perimeter protection fencing. We have also set up two of the 95' reception and relay towers, which will bring all the well-head data to the plant site.

Click on link below to see the photos of the gas plant towers and foundations being poured http://www.aussieoil.com/site/acor-map.htm.

The complete gathering system running from 2" to 10" pipe has been purged of all air and is now pressured up with gas. The Gas gathering infrastructure consists of approximately 25 miles of low-pressure, polyethylene pipeline to gather well-head gas and deliver it to the RETCO operated HNNG-gas processing plant. Natural gas liquids and nitrogen will be removed from the gas before it is delivered to Texas Gas Transmission for redelivery to consumers in the area. Gas sales agreements are also in place with Atmos Energy Marketing, LLC, a wholly owned subsidiary of Atmos Energy.

The JV Partner states that the initial focus area in the Park City Gas Field encompasses approximately 8,000 acres and has possible estimated reserves from the New Albany Shale of approximately 15 billion cubic feet (BCF) and possibly an additional approximately 24 BCF from the Fort Payne Limestone formation.

In March 2007, ACOR announced that The Company had signed a general pooling agreement on the Park City Gas Field, located in Kentucky. The pooling agreement gives ACOR a 10% working interest in the pool under approximately 34 shut-in gas wells.

In 2002, ACOR made a significant change in its operations by including domestic oil and gas exploration in its program. ACOR entered into an Agreement with Resource and Energy Technologies Company for the drilling and development of oil and gas in the Park City Field Prospect in Edmonson County, Kentucky. This field is located in the Highland Rim Physiographic Province that extends over portions of central Kentucky and middle Tennessee.

As of April 5, 2004, a total of over 38 wells have been drilled and paid for in Edmonson County, Kentucky. ACOR paid its drilling costs with AUCAF restricted common stock based on a value of $1.00 per share.

Because of the lack of gas gathering pipelines in the area, it has taken ACOR several years to get the project to this point. It has been long known that this part of western Kentucky contains significant shallow natural gas reserves from several different formations, including the Ft. Payne Limestone, New Albany Shale and Silurian/Devonian carbonates.

In January 2005, ACOR hired Production Meter & Testing Company out of Breckenridge, Texas to test some of the wells for 3 days on ACOR's working interest in Kentucky.

Test results: using various chokes from 24/64th to 16/64th.

PARSLEY No. 6 well: on a 24/64 choke tested at 494MCFPD

McCOMBS No. 3 well: on a 24/64 choke tested at 960MCFPD

ROYCE HOUCHIN No. 2 well: had fluid in it and tested flat at 50MCFPD

ACOR currently owns a 10% working interest in the Park City Kentucky gas unit*.

* Other interests were added to the pool which reduced ACOR's percentage in the gas pooling unit, but will increase the gas reserves in the extended pooling agreement.

The Pecos-1 Well Drilling Report

The operator has advised that it has plugged and abandoned the Pecos-1 well. The well was drilled to a total depth of approximately 5,788 feet, no commercial grade hydrocarbons were observed.

The preliminary well prognosis, based on well logs indicated that the projected tops of the formations did not correlate with the tops of the formations encountered during the drilling of the well.

The operator is reviewing the data and is having it reviewed by another geophysicist to try to understand why the elevations of the zones were dramatically different than expected.

About PEL 112

PEL 112 covers approximately 818,904 gross acres, ACOR and partners have invested approximately 6 years and several million dollars in PELs 112, 108, & 109 conducting seismic surveys. ACOR owns a 13.83% Carried W.I. through the first 3 wells under PELs 108, 109, & 112.

Other Upcoming ACOR Events

ACOR is traveling to Australia in April to attend the APPEA Convention to look at additional working interest farm in opportunities within onshore Australia and to finalize the Aboriginal Agreement on ATP-582. The JV Partner of ATP-582 has agreed to shoot $US1,000,000 worth of 2-D seismic and drill 1 well. ACOR will be carried for 50% W.I. in the 1st well.

The 3 offshore wells to be drilled, beginning in April are listed below:

1. On VIC/P45, the well will target the Coelacanth prospect with estimated reserves of approximately 64,000,000 barrels of oil or approximately $6,400,000,000 at current crude oil prices.
2. On VIC/P54, the operator will drill the development well Longtom 4 to properly development the field and is seeking to possibly increase the already proven reserves of 438 BCF of gas and 4,000,000 barrels of condensate in the Longtom Gas Field or approximately $5,700,000,000 at current crude oil & gas prices.
3. On VIC/P53 the well will target the Bazzard structure with estimated reserves of approximately 35,000,000 barrels of oil or approximately $3,500,000,000 at current crude oil prices.

VIC/P45, VIC/P54 and VIC/P53 are located in the prolific Gippsland Basin in the offshore Australian waters of the Bass Strait.

SOURCE: Australian-Canadian Oil Royalties Ltd.