Australian Canadian Oil Royalties Ltd. announced that the operator states that the TSMarine Rem Etive dive support vessel had completed all hook-up activities for the pipeline and control systems for the Longtom Gas Field and tested the system. Production is expected to start in the coming week following coordination of the start-up with Santos's onshore Orbost gas plant. Santos has a gas contract in place, at an estimated value of approximately $1,000,000,000 to process and purchase up to 350 Petajoules (PJ) of gas and associated liquids from the Longtom Gas Field on ACOR's ORRI located in the offshore Gippsland Basin. The gas from the Longtom Gas Field will be transported via the newly-built pipeline by the operator to the end of Santos's Patricia-Baleen pipeline, approximately 7.3 miles away. The raw gas would then continue along the Patricia-Baleen pipeline to shore where it would be processed at the Orbost gas plant. The Longtom gas project has proved and probable reserves of approximately 350 BCF of gas and 4 million barrels of condensate. The daily production is estimated at a volume of approximately 11,000-12 000 barrels of oil equivalent per day (100% basis).

Australian Canadian Oil Royalties Ltd. announced that Victoria Petroleum NL for the PEL 111 Joint Venture, has agreed to drill the Snatcher-3 well to further explore the oil-bearing potential of the Birkhead channel sands that are productive in the Snatcher-1 and 2 wells on ACOR ORRI. The JV partner said the well, subject to necessary regulatory approvals, would be drilled with the Century Rig 3 early next month. Snatcher-3 is located 800m to the northwest of the successful Snatcher-2 exploration well and will be drilled to a depth of approximately 5905 feet. The Snatcher-3 well is targeting P50 reserves of 550,000 barrels based on the expected drainage around the well and would take around 15 days to drill and evaluate. If successful, Snatcher-3 will be brought onto production through an extended production test linked to the temporary facilities that are nearing completion at Snatcher-1. Meanwhile, production from Snatcher-1 and Snatcher-2 is on track to start early in November with oil to be trucked to the Santos production hub at Moomba. Both wells, Snatcher-1 & Snatcher-2 will be produced with pumps at a combined target rate of 800bbl of oil per day. ACOR owns a 1/10th of 1% ORRI under PEL 111, which includes the Snatcher Oil Field, covering approximately 292,819 gross acres.

Australian Canadian Oil Royalties Ltd. announced that the operator, Victoria Petroleum N.L. (Vicpet) for the PEL 111 Joint Venture, advises that the Short Term Production Test at Snatcher-2 has resulted in a flow to the surface from the Birkhead Formation of clean 48 degree API oil at a rate of 207 barrels per day. The Snatcher-2 well is located approximately 2,952 feet north of Snatcher-1. On July 28th, the operator advised that the Short Term Production Test at Snatcher-1 resulted in a flow to the surface from the Birkhead Formation of clean 48 degree API oil at a rate of 218 barrels per day on a 12/64 in choke. The Snatcher-1 & Snatcher-2 wells are a successful test of the oil bearing potential of the Snatcher Prospect adjacent to the Santos Limited operated Charo Field in PPL 177. The PPL 177 license is wholly contained within PEL 111. The operator states that the planned drilling of the Snatcher-3 well is expected to commence by December 2009. The Century drilling rig is currently stacked at the Snatcher-2 well location.