UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

[X]   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934

                    FOR QUARTERLY PERIOD ENDED MARCH 31, 2006

                                       OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

             For the transition period from _________ to _________.

                           Commission File No. 0-29832

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.
                     --------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

   British Columbia, Canada                                        75-2712845
-------------------------------                                -----------------
(State or Other Jurisdiction of                                (I.R.S. Employer
 Incorporation or Organization)                                Identification #)

        1304 Avenue L, Cisco, TX                                     76437
----------------------------------------                           ----------
(Address of Principal Executive Offices)                           (Zip Code)

                                 (254) 442-2658
                                 --------------
                Registrant's Telephone Number Including Area Code

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

              There were 12,609,721 shares of common stock, No Par
                     Value, outstanding as of March 31, 2006

Transitional Small Business Disclosure Format; [ ] Yes [X] No
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                                   FORM 10-QSB

                                      INDEX

                                                                            Page
                                                                            ----

Part I. Financial Information

      Item 1. Financial Statements

            Balance Sheet ...................................................  3

            Statement of Operations .........................................  4

            Statement of Stockholders' Equity ...............................  5

            Statement of Cash Flows .........................................  6

            Selected Information Regarding the Financial Statements .........  7

      Item 2. Management's Discussion and Analysis and Plan of Operations ...  9

      Item 3: Controls and Procedures ....................................... 12

Part II: Other information

      Item 6: Exhibits and Reports on Form 8-K .............................. 12

Signatures .................................................................. 12

Certifications .............................................................. 13
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                  March 31,     December 31,
                                                                    2006            2005
                                                                ------------    ------------
                                                                 (unaudited)
<S>                                                             <C>             <C>
                                           ASSETS
CURRENT ASSETS
   Cash                                                         $     68,312    $      3,791
   Cash - restricted                                                 500,000       1,000,000
   Accounts receivable                                                 7,218           8,729
                                                                ------------    ------------
               Total Current Assets                                  575,530       1,012,520
                                                                ------------    ------------
PROPERTY AND EQUIPMENT
   Oil and gas properties-being amortized                            122,009         122,009
   Oil and gas properties-not being amortized                        944,718         844,668
   Office equipment and software                                      18,421          18,421
   Accumulated depreciation and depletion                            (54,384)        (50,398)
                                                                ------------    ------------
               Net Property and Equipment                          1,030,764         934,700
                                                                ------------    ------------
OTHER ASSETS
               Investment in equity method investee                    1,084           1,084
                                                                ------------    ------------
               TOTAL ASSETS                                     $  1,607,378    $  1,948,304
                                                                ============    ============

                             LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts Payable                                             $     40,919    $     10,018
   Accrued expenses                                                    5,242           8,300
   Loans from officers                                               142,194         268,172
   Notes payable to bank                                             500,000       1,000,000
                                                                ------------    ------------
               Total current liabilities                             688,355       1,286,490
                                                                ------------    ------------
STOCKHOLDERS' EQUITY
   Preferred stock no par value (50,000,000 shares authorized
        none outstanding)                                                 --              --
   Common stock, no par (50,000,000 shares authorized
        12,609,721 and 11,135,042 shares, respectively,
         issued and outstanding)                                   2,410,450       1,995,287
   Additional paid in capital                                        158,351         153,247
   Accumulated deficit                                            (1,649,782)     (1,486,724)
   Other comprehensive income:
        Foreign currency translation adjustment                            4               4
                                                                ------------    ------------
               Total Stockholders' Equity                            919,023         661,814
                                                                ------------    ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $  1,607,378    $  1,948,304
                                                                ============    ============
</TABLE>
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                            STATEMENTS OF OPERATIONS
               For the Three Months Ended March 31, 2006 and 2005
                                   (Unaudited)

                                                       2006            2005
                                                   ------------    ------------
OIL AND GAS REVENUES                               $     13,715    $      2,303

COST OF SALES
   Production taxes                                          17              38
   Lease operating expenses                               8,648           2,599
   Depletion                                              2,451           1,529
                                                   ------------    ------------
     GROSS PROFIT                                         2,599          (1,863)
                                                   ------------    ------------
OPERATING EXPENSES
   Personnel costs                                       53,707          24,527
   Professional fees                                      2,027           3,922
   Promotion and advertising                             85,427           8,616
   Office expenses                                        6,492           2,575
   Depreciation                                           1,535           1,535
   Other                                                  6,830           2,479
                                                   ------------    ------------
               Total Operating Expenses                 156,018          43,654
                                                   ------------    ------------
OPERATING LOSS                                         (153,419)        (45,517)

OTHER INCOME/(EXPENSE)
   Interest income                                        6,957           3,331
   Interest expense                                     (13,311)         (9,083)
                                                                   ------------
NET LOSS BEFORE INCOME TAXES                           (159,773)        (51,269)
   Australian income taxes                                3,285             358
                                                   ------------    ------------
NET LOSS                                           $   (163,058)   $    (51,627)
                                                   ============    ============
BASIC (LOSS) PER COMMON SHARE                      $      (0.01)   $       0.00
                                                   ============    ============
Weighted Average Number of Common Shares
Outstanding:
   Basis                                             11,893,898      10,495,222
                                                   ============    ============
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                       STATEMENTS OF STOCKHOLDERS' EQUITY
                    For the Three Months Ended March 31, 2006
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                              Accumulated
                                         Common Stock           Additional                     Other Com-
                                  --------------------------      Paid In     Accumulated      prehensive
                                     Shares        Amount         Capital        Deficit         Income         Totals
                                  -----------   ------------   ------------   ------------    -----------    ------------
<S>                                <C>          <C>            <C>            <C>               <C>          <C>
BALANCES, December 31, 2005        11,135,042   $  1,995,287   $    153,247   $ (1,486,724)     $      4     $    661,814

Stock issued for:
   Services                           100,000         75,000                                                       75,000
   Oil & gas properties               100,000         45,000                                                       45,000
   Notes payable to directors         574,679        155,163                                                      155,163
   Private Placement                  700,000        140,000                                                      140,000
   Other contributed capital                                            800                                           800
Additional contributed capital                                        4,304                                         4,304
Net Loss                                                                          (163,058)                      (163,058)
                                  -----------   ------------   ------------   ------------      --------     ------------
BALANCES, March 31, 2006           12,609,721   $  2,410,450   $    158,351   $ (1,649,782)     $      4     $    919,023
                                  ===========   ============   ============   ============      ========     ============
</TABLE>
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                            STATEMENTS OF CASH FLOWS
               For the Three Months Ended March 31, 2006 and 2005
                                   (Unaudited)

                                                       2006            2005
                                                   ------------    ------------
CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                           $   (163,058)   $    (51,627)
Adjustments to reconcile net (loss) to net cash
     provided by operations:
        Depreciation, depletion and amortization          3,986           3,064
        Value of expenses contributed by officers         5,104             800
        Stock issued for services                        75,000           3,717
Changes in:
     Receivables                                          1,511           1,216
     Prepaid expenses and other                              --           2,285
     Accounts payable and accrued expenses               27,843          25,373
                                                   ------------    ------------
NET CASH USED BY OPERATING ACTIVITIES                   (49,614)        (15,172)
                                                   ------------    ------------
CASH FLOWS USED BY INVESTING ACTIVITITES:
     Acquisition of oil and gas properties              (55,050)        (55,345)
                                                   ------------    ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from private placement                    140,000              --
     Proceeds from notes payable to officers             29,185          81,465
     Reduction in bank notes                            500,000              --
     Reduction in restricted cash                      (500,000)             --
                                                   ------------    ------------
NET CASH FLOWS FROM FINANCING ACTIVITIES                169,185          81,465
                                                   ------------    ------------
NET INCREASE IN CASH                                     64,521          10,948
        Cash, Beginning of Period                         3,791           9,803
                                                   ------------    ------------
        Cash, End of Period                        $     68,312    $     20,751
                                                   ============    ============
SUPPLEMENTAL DISCLOSURES:
     Cash payments for:
        Interest                                   $     12,064    $         16
        Australian income taxes                           3,285           8,352
     Non-Cash Investing and Financing Activities:
        Stock issued for oil and gas properties          45,000              --
        Stock issued for services                            --          10,800
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                  SELECTED INFORMATION FOR FINANCIAL STATEMENTS
                                 March 31, 2006
                                   (Unaudited)

NOTE 1: BASIS OF PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principals for interim financial information
and with the instructions of Regulation S-B. They do not include all information
and footnotes required by generally accepted accounting principles for complete
financial statements. However, except as disclosed herein, there has been no
material change in the information included in the Company's Report on Form
10-KSB for the year ended December 31, 2005. In the opinion of Management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three-month
period ended March 31, 2006, are not necessarily indicative of the results that
may be expected for the year ending December 31, 2006.

NOTE 2: GOING CONCERN CONSIDERATIONS

The Company neither has sufficient cash on hand nor is it generating sufficient
revenues to cover its operating overhead. These facts raise doubt as to the
Company's ability to continue as a going concern. The Company has operating over
the past year based on loans/stock purchases from its officers/directors. There
is no guarantee that such officers/directors will continue to provide operating
funds for the Company. In order to pursue its goals and commitments under the
Australian concession prospects that it has obtained, the Company will be
required to obtain significant funding or to exchange all or portions of its
interests in those concessions to meet the minimum expenditure requirements
underlying the concessions. Management's plans include attempting to find a
drilling company to farm out the working interests under the concessions,
raising funds from the public through a stock offering, and attempting to
acquire additional producing interests in exchange for stock. Management intends
to make every effort to identify and develop sources of funds. There is no
assurance that Management's plans will be successful.

NOTE 3: CONTRIBUTED EXPENSES

Officers of the Company have not been paid for their services. Additionally, the
Company has not established an office separate from that of its officers. The
value of the officers' unpaid services has been estimated at $400 per quarter
for 2006 and 2005. The value of office space utilization has also been estimated
at $400 per quarter for 2006 and 2005. These costs have been recorded as
expenses and as additional capital.

NOTE 4: STOCK TRANSACTIONS

During January, the Company issued 574,679 restricted common shares to one of
its previous President for payment of loans. In February, the Company issued
100,000 restricted common shares to an unrelated person for a promotional
services valued at a total of $75,000. In March, the Company issued 700,000
restricted common shares for private placements of the Company's stock valued at
$140,000 and 100,000 restricted common shares for a 1/40th of 1% overriding
royalty interest valued at $45,000,

NOTE 5: AUSTRALIAN CONCESSIONS

During the first quarter of 2006, the Company paid for operating expenses in the
amount of $48,550 on PEL 100, $3,600 on seismic for PEL 112 and $2,900 on
rentals on PEL's 108, 109 and 112.
<PAGE>

NOTE 6: RELATED PARTY TRANSACTIONS

As noted in the Company's Form 10K-SB for the year ended December 31, 2005, the
Company acquires personnel services from and reimburses related parties for
administrative and other general operating expenses on an ongoing basis.

During the first of 2006, the Company paid $31,861 for personnel costs and other
expenses to related parties, primarily Secretarial Services, Inc. and Tensleep
Oil & Production, Inc. In addition, the Company reimbursed Australian Grazing &
Pastoral Co., Pty. Ltd. for Australian rentals and seismic costs incurred on the
Company's behalf. Robert Kamon, the Company's Secretary controls these entities.

The Company borrowed $29,186 from one of its Directors and Secretary during the
first quarter of 2005 to meet its operating expenses and its exploration
obligations.

NOTE 7: SUBSEQUENT EVENTS

During May 2005, the Company paid $11,704 for additional expenses for their
working interest in PEL 100.
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS

Any statements that are contained in this Form 10-QSB that are not statements of
historical fact are forward-looking statements. Readers can identify these
statements by words such as 'may,' 'will,' 'expect,' 'anticipate,' 'estimate,'
'continue' or other similar words. These statements discuss future expectations,
contain projections of results of operations or financial condition or state
other forward-looking information and are based on certain assumptions and
analyses made by the Company in light of its experience and its perception of
historical trends, current conditions, expected future developments and other
factors it believes are appropriate in the circumstances. Such statements are
subject to a number of assumptions, risks and uncertainties, including such
factors as uncertainties in cash flow, expected costs of litigation, the outcome
of litigation, the potential impact of government regulations and rulings,
fluctuations in the economic environment and other such matters, many of which
are beyond the control of the Company. Readers are cautioned that
forward-looking statements are not guarantees of future performance and that
actual result or developments may differ materially from those expressed or
implied in the forward-looking statements.

The following discussion and analysis should be read in conjunction with the
Company's financial statements and notes thereto as of December 31, 2005 and
March 31, 2006 and 2005, for the respective periods then ended.

GENERAL DISCUSSION:

During the first quarter seven wells were drilled in the Cooper/Eromanga Basin
in Australia on concessions in which the Company holds overriding royalty
interests. All of these wells were completed as oil and gas wells. As reported
further in this report a number of wells are announced for drilling.

The Company owns 41.5% working interest in Petroleum Exploration License ("PEL")
112, which covers approximately 818,000 acres. The first quarter of 2006 was
focused on farming-out PEL 112 located in the Cooper/Eromanga Basin. The
importance of ACOR's 41.5% working interest in PEL 112 is best described by the
production on the adjoining concessions to the east and north. To the east of
PEL 112 is the Worrior Field consisting of two wells that are generating annual
oil sales of $US75,000,000. Eleven more wells have been announced for drilling
this year expanding the Worrior Field. To the north of PEL 112 is the Christies
Field, which is producing approximately $33,000,000 per year in oil sales.

During the previous quarter the Company received the seismic interpretation from
the 190 miles of 2D seismic conducted on PEL108 and PEL112, which cost
approximately $US1,100,000. The results of this seismic survey yielded a number
of drillable prospects that could have a dramatic impact on the Company's future
earnings. Two notable structures were identified on PEL 112. One of which,
seismic structure C23, is on the same seismic line as the Sturt/Tantanna oil
fields. The Tantanna #1 came in with an initial potential of 7,000 barrels per
day.

ACOR is seeking to farm-out its working interests in the Cooper/Eromanga Basin
including PEL 108, 109 and 112 which would be subject to acceptable terms and
conditions where ACOR would maximize its participation in the concessions in a
carried position in three (3) wells. Pursuant to the terms and conditions of the
concessions two wells are required to be drilled by April 2007 and one well by
April 2008. At the time of filing this report ACOR has not entered into any
farm-out agreement but is in discussions with several interested entities.

Subsequent to March 31, 2006 ACOR sent a two-member team to Australia to meet
with interested parties in ATP 582 and PEL's 108, 109 and 112. Discussions are
continuing with several different parties.

ACOR holds approximately 7,650,352 net working interest acres in the most
prolific basins in Australia, located onshore in the Cooper/Eromanga Basin and
offshore in the Gippsland Basin.

During the quarter ended March 31, the following activity occurred on its
Australian interests:

In January 2006 a 51 well drilling program was announced on ATP 299 over the
next two years. During the quarter 4 wells were drilled and completed as
producers (Mulberry #6, #7, #8 & #9) and three wells were deepened and completed
as Birkhead oil formation producers on ATP 299. The completion of these wells
extended the boundaries of the Mulberry Oil Field. The Company holds a 5.75% of
1% overriding royalty under the 441,600 acre ATP 299 concession. Revenue from
these new wells is expected to be received by the Company during the third
quarter of 2006. Production
<PAGE>

On concession PEL 115 the #2, #3 and #4 Mirage wells were drilled during the
quarter and was completed as a producer and four more wells was announced to be
drilled on this concession. The Company holds a 10% of 1% overriding royalty.
The Mirage #2 and #4 were completed as producers. It is important to note that
the Mirage #3 tested 324 barrels of oil per day.

Two wells were announced for drilling on PEL 111 during 2006 during the quarter
under which the Company holds a 10% of 1% overriding royalty. In the Gippsland
Basin, located between Victoria and Tasmania, a 524 square kilometer 3D high
resolution seismic survey was completed on VIC/P53. The Company holds a 5% of 1%
overriding royalty under VIC/P53.

LIQUIDITY AND CAPITAL RESOURCES

The Company has historically addressed its long-term liquidity needs for the oil
and gas exploration and development for its Australian working interests.
Through the use of farm-out agreements the Company sells a portion of its
ownership interest in the concession to an outside party who is then responsible
for the exploration activities i.e. seismic, drilling etc. This is the strategy
that management is following in order to meet the expenditure requirements on
the Australian concessions.

In addition the Company may also satisfy its future capital requirements by
selling its common stock. Should the Company become unable to reach satisfactory
Farm-out arrangements or obtain financing from the sale of its securities or
some other source, the Company may not be able to achieve some of its future
goals.

The principal assets of ACOR are oil and gas properties, reported at $944,718 on
March 31, 2006, which were up $100,050 compared to December 31, 2005. This
increase was attributed to the acquisition of an additional overriding royalty
of 2.5% of 1% under Vic/P45 for $45,000, which was paid through the issuance of
100,000 restricted common shares. In addition the Company had expenditures of
$48,550 for its 2% WI cash requirement for drilling on PEL 100 plus the balance
of seismic expenditures of $3,600 on PEL 112 and $2,900 in rentals on PEL's 108,
109 & 112.

The Total Current Assets decreased from December 31, 2005 to March 31, 2006 from
$1,012,520 to $575,530. The Company's Total Current Assets as of March 31, 2005,
was $1,887,988 with Total Current Liabilities of $1,131,837, giving a liquidity
ratio of 1.67 to 1. The Company's Total Current Assets as of March 31, 2006, was
$575,530 with Total Current Liabilities of $688,355, giving a liquidity ratio of
..84 to 1. The Company's cash position was $1,020,751 on March 31, 2005 compared
to $1,003,791 and $568,312 on December 31, 2005 and March 31, 2006 respectively.
The Company continues to have no long-term debt. The reduction in current assets
is directly related to due to a reduction in its restricted cash from $1,000,000
to $500,000, which occurred during the current quarter.

The Company's total assets on March 31, 2006 were $1,607,378 compared to
$1,948,304 on December 31, 2005 and $1,887,998 on March 31, 2005. The decline in
assets is directly related lowering the $1,000,000 restricted cash in the
Company to $500,000, which occurred during the quarter ended March 31, 2006.

The Company continues to operate without any long-term debt.

Stockholders' Equity increased when comparing March 31, 2006 ($919,023) to
December 31, 2005, March 31, 2005 being $661,814 and $756,161 respectively. This
increased is related to the an increase of $100,050 in oil and gas properties
plus unrestricted cash improved from $3,791 on December 31, 2005 to $68,312 on
March 31, 2006 an increase of $64,521.

Management believes that its current cash balance is sufficient to fund
immediate administrative needs. However, long-term plans are expected to require
significant additional capital and there is not any assurance that the Company
will be able to obtain such funds or obtain the required capital on terms
favorable to the Company. During the quarter ended March 31, 2006 the Company
sold 700,000 restricted common shares of the Company for $140,000. Also during
the quarter the Company settled $155,163 in debt with its directors through the
issuance of 574,679 shares of restricted common stock.
<PAGE>

The Company also issued 100,000 restricted shares for oil and gas properties
(valued at $45,000) and 100,000 restricted shares for services (valued at
$75,000). The difference in values for the same number of shares issued is
related to the price of the stock at the time the shares were issued.

RESULTS OF OPERATIONS

Oil and gas revenues received during the quarter ended March 31, 2006 begin to
reflect the 2005 drilling activity on its Australian interests. Oil and gas
revenues for the three months ended March 31, 2006 was 13,715 of which all was
from its Australian interests except for $361.00. Oil and gas revenues for the
three months ended March 31, 2005 were $2,303 reflecting a dramatic improvement.
The Australian revenues were generated from concessions ATP 267, ATP 299, ATP
560 and PEL 115.

The Lease Operating Expenses incurred under the Cost of Operations section are
directly related to the Company's oil and gas interests in the Kentucky.

Total Operating Expenses were $156,018 for the three months ended March 31, 2006
compared to $43,654 for the quarter ended March 31, 2005. The principal reason
for the increase is due to Personnel, Promotion and Advertising cost increased.
Included in the Personnel costs was $39,521 in contract labor of which $32,300
was allocated for estimated stock value for shares to be issued for
administrative services. The most significant increase was in Promotion and
Advertising of which $75,000 was paid through the issuance of the 100,000 shares
of the Company's restricted common stock.

The Company's operating loss was $153,419 for the quarter ended March 31, 2006
compared to an operating loss of $45,517 for the same period in 2005. As stated
above, the increase in expenditures of personnel and promotion and advertising
caused operating losses to increase by $105,991.

The Company had interest income of $6,957 compared to $3,331 for the quarters
ended March 31, 2006 and 2005 respectively. The Company also incurred interest
expense of $13,311 during the quarter ended March 31, 2006 compared to $9,083
for the quarter ended March 31, 2005. Of the $13,311 interest paid by the
Company $1,247 was paid to directors on loans.

The net loss for the three months ended March 31, 2006 was $163,058 compared to
a net loss of $51,627 for the quarter ended March 31, 2005. The increase in net
loss is attributable an increase in personnel and promotion and advertising as
described more fully above.

OFF-BALANCE SHEET ARRANGEMENTS

As of March 31, 2006, the Company had no off-balance sheet arrangements.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENT

The forward-looking statements in this Form 10-QSB reflect the Company's current
views with respect to future events and financial performance. These
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ from those anticipated. In the Form
10-Q-SB, the words "anticipates," "believes," "expects," "intends," "future,"
and similar expressions identify forward-looking statements. The Company
undertakes no obligation to publicly revise these forward-looking statements to
reflect events or circumstances that may arise after the date hereof. All
subsequent written or oral forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in their
entirety by this section.
<PAGE>

ITEM 3: CONTROLS AND PROCEDURES

      (a) The Management of Australian-Canadian Oil Royalties Ltd. carried out
      an evaluation, under the supervision and with the participation of the
      Company's management, including the Corporation's Chief Executive Officer
      and Chief Financial officer, of the effectiveness of the design and
      operation of the Company's disclosure controls and procedures as of March
      31, 2006, pursuant to Rule 13a-15 of the Securities Exchange Act of 1934,
      as amended (the "Exchange Act"). Based on that evaluation, the Company's
      Chief Executive Officer and the Chief Financial Officer concluded that the
      Corporation's disclosure controls and procedures were effective as of
      March 31, 2006, in timely alerting them to material information relating
      to the Corporation required to be included in the Corporation's periodic
      Exchange Act filings.

      (b) There have been no significant changes in the Corporation's internal
      controls or in other factors that could significantly affect its internal
      controls subsequent to the date of the Corporation carried out its
      evaluation.

                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      Exhibit 31.1 -- Certification of President and Chief Executive Officer
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

      Exhibit 31.2 -- Certification of Secretary and Chief Financial Officer
      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

      Exhibit 32 -- Certification of Chief Executive Officer and Chief Financial
      Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

      Reports on Form 8-K - None

                                   SIGNATURES

In accordance with the requirement of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                     Australian-Canadian Oil Royalties Ltd.


Date: May 16, 2006                   /s/ Robert Kamon
                                     -------------------------------------------
                                     By: Robert Kamon, Secretary and Principal
                                     Financial Officer