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

                                    FORM 10-Q

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

                  FOR QUARTERLY PERIOD ENDED SEPTEMBER 30, 2009

                                       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 #)

        1301 Avenue M, Cisco, TX                                  76437
----------------------------------------                        ----------
(Address of Principal Executive Offices)                        (Zip Code)

                                 (254) 442-2638
                                 --------------
                Registrant's Telephone Number Including Area Code

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company.
(Check one):
Large accelerated filer [ ]         Accelerated filer [ ]
Non-accelerated filer [ ]           Smaller Reporting Company [X]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) Yes [ ] No [X]

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

      There were 19,341,141 shares of common stock, No Par Value, outstanding as
      of September 30, 2009.
<PAGE>

PART 1. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                               September 30,   December 31,
                                                                    2009           2008
                                                                -----------    -----------
                                                                (unaudited)
<S>                                                             <C>            <C>
                                          ASSETS
CURRENT ASSETS
   Cash                                                         $    15,067    $    42,677
   Certificate of deposit                                                --      1,000,000
   Accounts receivable                                                8,005         10,899
                                                                -----------    -----------
                  Total Current Assets                               23,072      1,053,576
                                                                -----------    -----------
PROPERTY AND EQUIPMENT
   Oil and gas properties-being amortized                           363,176        363,176
   Oil and gas properties-not being amortized                       740,428        740,428
   Office equipment and software                                     24,783         23,672
   Accumulated depreciation and depletion                          (208,196)      (154,763)
                                                                -----------    -----------
                  Net Property and Equipment                        920,191        972,513
                                                                -----------    -----------
OTHER ASSETS
                  Investment in equity method investee                1,084          1,084
                                                                -----------    -----------
                  TOTAL ASSETS                                  $   944,347    $ 2,027,173
                                                                ===========    ===========

                            LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
   Accounts payable                                             $     1,520    $     1,729
   Accrued expenses                                                  91,605         81,046
   Loans from officers                                               25,000         50,000
   Notes payable to bank                                                 --      1,000,000
                                                                -----------    -----------
                  Total Current Liabilities                         118,125      1,132,775
                                                                -----------    -----------
STOCKHOLDERS' EQUITY
   Preferred stock no par value (50,000,000 shares authorized
        none outstanding)                                                --             --
   Common stock, no par (50,000,000 shares authorized
        19,341,141 and 16,465,458 shares, respectively,
         issued and outstanding)                                  3,679,099      3,490,546
   Additional paid in capital                                       169,552        167,151
   Accumulated deficit                                           (3,022,433)    (2,763,303)
   Other comprehensive income:
        Foreign currency translation adjustment                           4              4
                                                                -----------    -----------
                  Total Stockholders' Equity                        826,222        894,398
                                                                -----------    -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $   944,347    $ 2,027,173
                                                                ===========    ===========
</TABLE>

See accompanying notes to financial statements.
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                            STATEMENTS OF OPERATIONS
     For the Three Months and Nine Months Ended September 30, 2009 and 2008
                                   (Unaudited)

<TABLE>
<CAPTION>
                                            Three Months                     Nine Months
                                        2009            2008            2009            2008
                                    ------------    ------------    ------------    ------------
<S>                                 <C>             <C>             <C>             <C>
OIL AND GAS REVENUES                $     10,823    $     27,406    $     32,671    $    104,618

COST OF SALES
   Production taxes                           --              --              14              26
   Depletion                              17,295         (14,808)         51,843           9,335
                                    ------------    ------------    ------------    ------------
     GROSS PROFIT/LOSS                    (6,472)         42,214         (19,186)         95,257
                                    ------------    ------------    ------------    ------------
OPERATING EXPENSES
   Personnel costs                        47,910         (13,760)         84,381         137,323
   Professional fees                       5,377          10,592          30,894          43,640
   Promotion and advertising               4,229           5,017          15,072          18,338
   Office expenses                         1,942           2,466           6,949           9,556
   Depreciation                              530             437           1,590           1,312
   Directors' fees and other              36,569          44,744          38,390          54,105
                                    ------------    ------------    ------------    ------------
         Total Operating Expenses         96,557          49,496         177,276         264,274
                                    ------------    ------------    ------------    ------------
OPERATING LOSS                          (103,029)         (7,282)       (196,462)       (169,017)

OTHER INCOME/(EXPENSE)
   Interest income                            --              --             959              --
   Interest expense                      (44,773)         (1,969)        (54,261)         (6,855)
                                    ------------    ------------    ------------    ------------
NET LOSS BEFORE INCOME TAXES            (147,802)         (9,251)       (249,764)       (175,872)
   Australian income taxes                 2,917           7,557           9,366          30,069
                                    ------------    ------------    ------------    ------------
NET LOSS                            $   (150,719)   $    (16,808)   $   (259,130)   $   (205,941)
                                    ============    ============    ============    ============
BASIC (LOSS) PER COMMON SHARE       $      (0.01)   $      (0.00)   $      (0.01)   $      (0.01)
                                    ============    ============    ============    ============
Weighted Average Number of Common
  Shares Outstanding:
      Basic                           18,612,288      14,500,935      17,334,190      14,151,997
                                    ============    ============    ============    ============
</TABLE>

See accompanying notes to financial statements.

<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                            STATEMENTS OF CASH FLOWS
              For the Nine Months Ended September 30, 2009 and 2008
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                2009           2008
                                                                            -----------    -----------
<S>                                                                         <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)                                                                  $  (259,130)   $  (205,941)
Adjustments to reconcile net (loss) to net cash
     provided by operations:
         Depreciation and depletion                                              53,433         10,647
         Value of expenses contributed by officers                                2,400          2,400
         Stock issued for services                                               35,000        133,641
         Stock issued for director fees                                          32,500         58,700
         Stock issued in payment of interest                                         --         23,476

Changes in:
             Receivables                                                          2,894            691
             Prepaid expenses and other                                              --        (10,120)
             Accounts payable and accrued expenses                               38,044        (41,078)
                                                                            -----------    -----------
NET CASH USED BY OPERATING ACTIVITIES                                           (94,859)       (27,584)
                                                                            -----------    -----------
CASH FLOWS USED BY INVESTING ACTIVITITES:
         Acquisition of office equipment                                         (1,111)            --
                                                                            -----------    -----------
NET CASH FLOWS USED BY INVESTING ACTIVITIES:                                     (1,111)            --
                                                                            -----------    -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
         Proceeds from notes payable to officers                                 68,360         10,000
         Surrender of certificate of deposit                                  1,000,000             --
         Reduction in notes payable to bank                                  (1,000,000)            --
                                                                            -----------    -----------
NET CASH FLOWS FROM FINANCING ACTIVITIES                                         68,360         10,000
                                                                            -----------    -----------
NET (DECREASE) INCREASE IN CASH                                                 (27,610)       (17,584)
         Cash, Beginning of Period                                               42,677         71,777
                                                                            -----------    -----------
         Cash, End of Period                                                $    15,067    $    54,193
                                                                            ===========    ===========
SUPPLEMENTAL CASH FLOW INFORMATION:
     Interest and Income Taxes Paid:
         Interest                                                           $    59,554    $    28,362
                                                                            ===========    ===========
         Income taxes - Australian                                          $     9,366    $    30,069
                                                                            ===========    ===========
     Non-Cash Transactions:
         Stock issued for:
              Payment of notes to shareholders including interest accrued   $  (140,553)   $  (224,786)
                  Stock issued for payment of shareholders notes                140,553        224,786
                                                                            -----------    -----------
                                                                            $         0    $         0
                                                                            ===========    ===========
</TABLE>

See accompanying notes to financial statements.
<PAGE>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.
                  SELECTED INFORMATION FOR FINANCIAL STATEMENTS

                               September 30, 2009
                                   (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, 2008. 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 nine-month
period ended September 30, 2009, are not necessarily indicative of the results
that may be expected for the year ending December 31, 2009.

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 been 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.
<PAGE>

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

Any statements that are contained in this Form 10-Q 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, 2008 and
September 30, 2009 and 2008, for the respective periods then ended.

GENERAL DISCUSSION:

The Company is a purchaser and holder of both overriding royalty interests and
working interests both on an international and domestic basis. The Company's
strategy is two fold; 1) to seek overriding royalty interests in oil and gas
concessions within sedimentary basins in Australia and 2) develop and explore
existing concessions in which the Company holds working interest through
exploration - seismic and drilling.

The Company's ability to complete its planned exploration activities and explore
other oil and gas opportunities is dependent on adequate capital resources being
available and equity being obtained and/or find partners to fund the exploration
and drilling programs on the areas in which the Company holds working interests.

The Company holds overriding royalty interests in the Cooper/Eromanga Basins
that covers parts of Queensland and South Australia. These Company's overriding
royalties total 556,764 net royalty acres under 14,661,454 gross surface acres
in fourteen concessions. In addition the Company also owns 18,897 net royalty
acres under 1,194,667 gross acres in the Bass Strait of the Gippsland Basin
located offshore of the state of Victoria, Australia and 528 net royalty acres
under 160,618 gross acres in the Carnarvon Basin located offshore of the state
of Western Australia.

The Eromanga Basin encompasses the southwestern portion of the State of
Queensland and the northeast corner of South Australia, and is Australia's main
onshore producing oil and gas basin.

The Cooper Basin is located in the northeast part of the State of South
Australia. Management believes the Company's overrides are in a prime location
since the majority of the Company's interests form nearly continuous blocks
adjoining the producing block of Santos et al. which has reserves in excess of
one billion barrels of oil equivalent and is making approximately $A84 billion
worth of oil, gas and associated hydrocarbons per year (equivalent to about $75
billion in U. S. dollars) based on an oil price of $75per barrel.

The Company is currently receiving revenues from four of its overriding royalty
interests - ATP 267, ATP 299, ATP 560 and PEL 115. A successful gas well was
completed on ATP 543 in 1996. After completion of a gas pipeline gas began to be
marketed in August 1999, but the pipeline reduced the gas price and the well was
shut in.

The Company has overriding royalty interests in three Permits in the Gippsland
Basin, VIC/P45, 53 and 54. The Bass Strait of the Gippsland Basin is located
between the State of Victoria and Tasmania which has in excess of 4 billion
barrels of oil/condensate and 12 TCF gas reserves discovered since exploration
drilling began in 1964.
<PAGE>

The Company has overriding royalty interests in two permits in the Carnarvon
Basin is Australia's largest petroleum providence. The Carnarvon basin in the
Northwest Shelf contains a number of giant gas and gas-condensate fields. The
Greater Gorgon area, which includes other nearby gas fields, is 130 km off the
northwest coast of Western Australia in the Carnarvon basin. The fields in that
area contain in excess of 40 Trillion Cubic Feet of gas. In 2007, Western
Australia produced 126 million barrels of crude oil/condensate, and 30 billion
cubic meters of gas. 65% of the gas was transformed into 12 million tonnes of
LNG (all of which was exported), with the remainder of the gas being sold to
users in Western Australia. Primary production by the industry was valued at
$16.7 billion, accounting for 31% of all natural resources produced in the
state.

NOTABLE ACTIVITY ON PROPERTIES:

SOUTH AUSTRALIA:

PEL 111 - During the quarter ended September 30, 2009 the operator, Victoria
Petroleum N.L. (Vicpet) for the PEL 111 Joint Venture, advises that the Short
Term Production Test at Snatcher-1 has 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. Snatcher-1 was a successful test of the oil bearing
potential of the Snatcher Prospect adjacent to the Santos Limited operated Charo
Field in PPL 177. Snatcher-2 was drilled 899 meters (2,949 feet) north of
Snatcher-1 and was completed as a producer flowing 207 barrels of oil per day.
The PPL 177 license is wholly contained within PEL 111. ACOR owns a 1/10th of 1%
ORRI under PEL 111, covering approximately 292,819 gross acres.

On October 26, 2009 drilling commenced on the Snatcher-3 to test the
northwesterly extent of the Snatcher Field on PEL 111.

PEL 112 & 444 - An independent report conducted by ISIS Petroleum Consultants
Pty Ltd. of Australia places possible estimated reserves of approximately
31,000,000 barrels of oil on PEL 112 and 444 under which the Company holds a
13.83% working interest. ISIS study was over 10 of the 45 leads on PEL 112 and
444. The operator of PEL 112 & 444 states that seismic acquisition and a 5 well
drilling program will require expenditures of in excess of $11,000,000. Plans
are to seek joint venture partners to offset the majority of these costs. No
assurance is made that if drilling of the potential leads does occur would
result in the discover of the reserves reported by ISIS.

QUEENSLAND:

ATP560 - Newport Energy Pty. Limited, a new field entrant with an experience
team, became the operator of ATP560 and has proposed a substantial
development-drilling program including 12 wells in the Utopia Oil Field of which
5 wells are planned to commence in December 2009. The Company owns a 25% of 1%
overriding royalty interest in ATP560.

ATP543 - A 2D seismic survey over the Omicron prospect area has been reviewed
and interpreted with a plan to conduct further seismic and geological studies.
No timetable has been set by Santos, the operator, until the new work program
has been approved by the Queensland Department of Mines. The Company owns a 25%
of 1% overriding royalty interest in ATP543.

VICTORIA - BASS STRAIT:

VIC/P54 - The sub sea pipeline connection work and pressure testing is now
completed for the offshore installation for the Longtom gas project on VIC/P54.
First gas delivered from the Longtom field was achieved on October 21, 2009. The
Longtom wells Numbers 3 & 4 proved up gas reserves of approximately 400 BCF.
Reprocessing and inversion of 3D seismic data is underway over the Longtom field
and the eastern part of VIC/P54 to determine the potential for the Longtom trend
at the Admiral formation level to extend into this part of the permit. A gas
discovery here could be tied into the nearby Longtom production facilities. The
Company holds a 5% of 1% overriding royalty interest in VIC/P54.

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 (both those being
amortized a those not being amortized) reported at $1,103,604 on September 30,
2009, reporting no change since December 31, 2008.
<PAGE>

The Total Current Assets decreased from December 31, 2008 to September 30, 2009
from $1,053,576 to $23,072. Included in the December 31, 2008 current assets the
Company had a $1,000,000 certificate of deposit. Subsequent to December 31, 2008
the Company did not renew its $1,000,000 certificate of deposit that was used to
collateralize a bank note for $1,000,000. The Company's Total Current Assets as
of September 30, 2009, was $23,072 with Total Current Liabilities of $118,125
giving a liquidity ratio of .195 to 1. The Company's Total Current Assets as of
September 30, 2008, was $88,903 with Total Current Liabilities of $207,137,
giving a liquidity ratio of .20 to 1. The Company's cash position was $54,193 on
September 30, 2008 compared to $42,677 and $15,067 on December 31, 2008 and
September 30, 2009 respectively. The fluctuations in current assets from
September 30, 2008 compared to December 31, 2008 and September 30, 2009 is
directly related to the amount of cash on hand.

The Company's Total Assets on September 30, 2009 were $944,347 compared to
$2,027,173 on December 31, 2008 and $1,013,972 on September 30, 2008. Included
in the December 31, 2008 current assets the Company had a $1,000,000 certificate
of deposit. Subsequent to December 31, 2008 the Company did not renew its
$1,000,000 certificate of deposit that was used to collateralize a bank note for
$1,000,000. The decrease in total assets from September 30, 2008 to September
30, 2009 is related to the combination of reduction of cash and account
receivables.

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

Stockholders' Equity decreased when comparing September 30, 2009 ($826,222) to
December 31, 2008 ($894,398). The Stockholders' Equity for the Company on
September 30, 2008 was $806,835. Stockholders' Equity increased from September
30, 2008 to December 31, 2008 due to a reduction of current liabilities by
paying off the loans due to officers and affiliates of the Company.

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 third quarter ended September 30, 2009 the Company issued 637,188
restricted shares for $70,090 to pay off loans including $45,090 in interest. In
addition 100,000 restricted shares were issued during the quarter for director
fees, 76,923 restricted shares were issued for officer compensation and 200,000
restricted shares were issued to a consultant for shareholder communication
services. The number of shares issued and outstanding as of September 30, 2009
was 19,341,141.

RESULTS OF OPERATIONS

Oil and gas revenues received during the quarter ended September 30, 2009 was
$10,823 compared to $27,406 for the quarter ended September 30, 2008. Oil and
gas revenues reported for the nine months ended September 30, 2009 was $32,671
compared to $104,618 for the nine months ended September 30, 2008 reflecting the
impact of the decline in both production and oil prices from its Australian
production. The Australian revenues were generated from concessions ATP 267, ATP
299, ATP 560 and PEL 115. The principle revenues were derived from ATP 299 ATP
560 and ATP 267. The Company holds an overriding royalty interest of 5.75% of 1%
under ATP 299, 25% of 1% under ATP 560 and a 15.15% of 1% under ATP 267.

Total Operating Expenses were $96,557 for the three months ended September 30,
2009 compared to $49,496 for the quarter ended September 30, 2008. Personnel
costs increased from a credit of $13,760 to $47,910 when comparing September 30,
2008 to September 30, 2009. The value of the stock issued for services was pro
rated over the year based on a higher stock price that the price of the stock as
of September 30, 2008 resulting in a credit to offset the value previously
reported. The value of these shares issued was valued at fair market value of
the Company's common stock at the time of issuance.

Total Operating Expenses were $177,276 for the nine months ended September 30,
2009 compared to $264,274 for the nine months ended September 30, 2008.
Personnel costs, promotion costs and directors' fees were all up reflecting the
majority of the $86,998 increase in total operating expenses for the nine-month
period.

The Company's operating loss was $103,029 for the quarter ended September 30,
2009 compared to an operating loss of $7,282 for the same period in 2008. The
increase in personnel costs coupled with the dramatic decline in revenues caused
the operating losses to be greater for the quarter ended September 30, 2009. The
most significant change in categories comparing the quarters ended September 30,
2008 and 2009 was in personnel costs.
<PAGE>

The Company did not report any interest income for the quarters ended September
30, 2009 and September 30, 2008. The Company did however incur interest expense
of $44,773 during the quarter ended September 30, 2009 compared to $1,969
interest expense for the quarter ended September 30, 2008. The Company's
interest expense was $54,261 for the nine months ended September 30, 2009
compared to interest expense of $6,855 for the nine months ended September 30,
2008. The majority of the interest expense incurred that was reported both
during the three month and nine month periods was to a major shareholder of the
Company for loans and advances made to the Company. The Company did have nominal
interest income for the nine months ended September 30, 2009 of $959 and
received no interest income for the nine months ended September 30, 2008.

The net loss for the three months ended September 30, 2009 was $150,719 compared
to a net loss of $16,808 for the quarter ended September 30, 2008. The increase
in net loss is primarily attributable an increase in personnel costs,
professional fees and interest expense coupled with lower oil and gas revenues
The net loss for the nine months ended September 30, 2009 was $259,130 compared
to a net loss of $205,941 for the nine months September 30, 2008.

SUBSEQUENT EVENTS

There were no significant subsequent events to report since the September 30,
2009.

PLAN OF OPERATION AND FUNDING

The Company plans to seek additional oil and gas concessions in Australia on
ground level basis and will seek partners to join in this process. The Company
has been successful in entering into farm-out arrangements to defer the
exploration commitments on several concessions that are now scheduled to have
drilling and/or seismic programs conducted during this year.

MATERIAL COMMITMENTS

The Company currently has no material commitments.

PURCHASE OF SIGNIFICANT EQUIPMENT

The Company does not intend to purchase any significant equipment during the
year.

RELATED PARTY TRANSACTIONS

During the third quarter of 2009, the Company paid $7,737 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 professional fees. Robert Kamon, the
Company's Secretary controls these entities.

OFF-BALANCE SHEET ARRANGEMENTS

As of September 30, 2009, the Company had no off-balance sheet arrangements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities
Exchange Act of 1934 and are not required to provide the information under this
item.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that
information required to be disclosed in our reports filed pursuant to the
Exchange Act is recorded, processed, summarized and reported within the time
periods specified in the SEC's rules, regulations and related forms, and that
such information is accumulated and communicated to our principal executive
officer and principal financial officer, as appropriate, to allow timely
decisions regarding required disclosure.
<PAGE>

As of September 30, 2009, we carried out an evaluation, under the supervision
and with the participation of our principal executive officer and our principal
financial officer of the effectiveness of the design and operation of our
disclosure controls and procedures. Based on this evaluation, our principal
executive officer and our principal financial officer concluded that our
disclosure controls and procedures were effective as of the end of the period
covered by this report.

Changes in Internal Controls

There have been no changes in our internal controls over financial reporting
during the quarter ended June 30, 2009 that have materially affected or are
reasonably likely to materially affect our internal controls.

                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

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

      Exhibit 31.2 -- Certification of President and Chief Executive 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: November 5, 2009          /s/ MAHNAZ NOURMAND
                                ------------------------------------------------
                                By: Mahnaz Nourmand, Principal Financial Officer