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 SEPTEMBER 30, 2003

                                    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. 000-29832


                  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) 442-2638
              -------------------------------------------------
              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 7,286,660 shares of common stock, no par value,
                    outstanding as of October 31, 2003


Transitional Small Business Disclosure Format;  [  ] Yes     [X] No




                                    1

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                AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.


                             FORM 10-QSB

                                INDEX


                                                                        Page
                                                                        ----
Part I.   Financial Information

   Item 1.   Financial Statements

     Report on Review by Independent Certified Public Accountants  .  .    3

     Balance Sheet .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .    4

     Statement of Operations   .  .  .  .  .  .  .  .  .  .  .  .  .  .    5

     Statement of Stockholders' Equity  .  .  .  .  .  .  .  .  .  .  .    6

     Statement of Cash Flows.  .  .  .  .  .  .  .  .  .  .  .  .  .  .    7

     Selected Information Regarding the Financial Statements .  .  .  .    8

   Item 2.  Management's Discussion and Analysis and Plan of Operations   11

   Item 3:  Controls and Procedures  .  .  .  .  .  .  .  .  .  .  .  .   15


Part II:  Other information

   Item 6:  Exhibits and Reports on Form 8-K  .  .  .  .  .  .  .  .  .   16


Signatures.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   16

Certifications  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   17













                                     2

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PART I.   FINANCIAL INFORMATION

Item 1.   Financial Statements




   REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


Board of Directors
Australian-Canadian Oil Royalties LTD.
Cisco, Texas

We  have reviewed  the accompanying  balance sheet  of Australian-Canadian
Oil  Royalties  LTD. as of September  30, 2003, and the related statements
of  operations for three and six months, and stockholders' equity and cash
flows  for nine  months ended September 30, 2003 and 2002. These financial
statements are the responsibility of the Company's management.

We  conducted  our review in  accordance with standards established by the
American  Institute  of Certified Public  Accountants. A review of interim
financial  information  consists principally of applying analytical review
procedures  to financial  data and making inquiries of persons responsible
for  financial  and accounting matters.  It is substantially less in scope
than  an  audit conducted  in accordance  with generally accepted auditing
standards,  the  objective  of  which  is the  expression  of  an  opinion
regarding  the  financial statements taken  as a whole. Accordingly, we do
not express such an opinion.

Based  on our  review, we are not aware of any material modifications that
should  be made  to the accompanying consolidated financial statements for
them to be in conformity with generally accepted accounting principles.

We have previously audited, in accordance with generally accepted auditing
standards,  the  balance sheet  as of  December 31,  2002, and the related
statements  of operations, changes in stockholders' equity, and cash flows
for  the year  then ended (not presented herein); and, in our report dated
February  18, 2003,  we expressed an opinion on those financial statements
that  was qualified with respect to the Company's ability to continue as a
going   concern.  In  our  opinion,  the  information  set  forth  in  the
accompanying  balance  sheet as of  December 31,  2002 is fairly stated in
all  material respects  in relation to the balance sheet from which it has
been derived.


/s/  ROBERT EARLY & COMPANY
-----------------------------------------
Robert Early & Company, P.C.
Abilene, Texas

October 30, 2003


                                    3

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                   AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                               BALANCE SHEETS

                                                    September 30, December 31,
                                                         2003         2002
                                                     -----------   ----------
                                                     (Unaudited)
                                  ASSETS

CURRENT ASSETS
   Cash and cash equivalents                          $   10,214   $    8,622
   Cash equivalents, restricted                          250,000      250,000
   Royalties receivable                                      904        3,243
   Prepaid expenses and other                                320          320
                                                      ----------   ----------
      Total Current Assets                               261,438      262,185
                                                      ----------   ----------
PROPERTY AND EQUIPMENT
   Oil and gas properties                                914,846      664,815
   Accumulated depletion                                 (31,099)     (28,470)
                                                      ----------   ----------
      Total Property and Equipment                       883,747      636,345
                                                      ----------   ----------
OTHER ASSETS
   Investment in Cooper Basin Oil & Gas, Inc.                 54           54
                                                      ----------   ----------

TOTAL ASSETS                                          $1,145,239   $  898,584
                                                      ==========   ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable, trade                            $   24,232   $    4,887
   Accrued interest payable                                1,004           -
   Note payable to bank                                  250,000      250,000
   Loans from officers                                    54,500           -
                                                      ----------   ----------
      Total Current Liabilities                          329,736      254,887
                                                      ----------   ----------
STOCKHOLDERS' EQUITY
   Common stock (50,000,000 shares authorized;
      no par value; 7,286,660 and 6,391,742 shares
      issued and outstanding, respectively)            1,220,247      986,711
   Additional paid in capital                             29,100       27,300
   Accumulated deficit                                  (433,550)    (370,020)
   Other comprehensive income:
      Foreign currency translation adjustment               (294)        (294)
                                                      ----------   ----------
         Total Stockholders' Equity                      815,503      643,697
                                                      ----------   ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY            $1,145,239   $  898,584
                                                      ==========   ==========



See accompanying selected information.
                                    4

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                  AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                    CONDENSED STATEMENTS OF OPERATIONS
       For Three and Nine Months Ended September 30, 2003 and 2002
                               (Unaudited)


                                           Three Months         Nine Months
                                          2003      2002      2003      2002
                                        --------  --------  --------  --------
OIL AND GAS REVENUES                    $    662  $  1,847  $  4,226  $  5,518

COST OF SALES
   Depletion                                 684     1,454     2,628     4,015
                                        --------  --------  --------  --------
   GROSS PROFIT                              (22)      393     1,598     1,503
                                        --------  --------  --------  --------
OPERATING EXPENSES
   Personnel costs                        20,025     6,884    23,710    19,766
   Professional fees                       3,245     2,019     9,536     9,345
   Promotion and advertising               3,863     3,295     9,488     9,452
   Other                                   5,239     7,478    15,074    13,688
                                        --------  --------  --------  --------
      Total Operating Expenses            32,372    19,676    57,808    52,251
                                        --------  --------  --------  --------
OPERATING LOSS                           (32,394)  (19,283)  (56,210)  (50,748)

OTHER INCOME/(EXPENSE)
   Interest and dividends                    748     2,493     2,431     3,767
   Interest expense                       (3,147)   (3,562)   (8,483)   (9,008)
                                        --------  --------  --------  --------

NET LOSS BEFORE INCOME TAXES             (34,793)  (20,352)  (62,262)  (55,989)

   Australian income taxes                   198       554     1,268     1,655
                                        --------  --------  --------  --------

NET LOSS                                $(34,991) $(20,906) $(63,530) $(57,644)
                                        ========  ========  ========  ========

LOSS PER COMMON SHARE:
   Basic and Diluted                    $  (0.01) $   0.00  $  (0.01) $  (0.01)
                                        ========  ========  ========  ========
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING:
   Basic and Diluted                   6,826,777 5,436,921 6,630,837 5,280,836
                                       ========= ========= ========= =========


See accompanying selected information.
                                     5

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<TABLE>
<CAPTION>
                  AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                    STATEMENT OF STOCKHOLDERS' EQUITY
               For the Nine Months Ended September 30, 2003
                                (Unaudited)
                                                                          Accumulated
                                                  Additional Accumulated    Other
                                   Common Stock     Paid In   Earnings/  Comprehensive
                                 Shares    Amount   Capital   (Deficit)      Income       Total
                               --------- ---------- --------  ---------    ---------    ---------
<S>                            <C>       <C>        <C>       <C>          <C>          <C>
BALANCES, 12/31/02             6,391,742 $  986,711 $ 27,300  $(370,020)   $    (294)   $ 643,697

Stock issued for Oil &
  Gas Working Interests          501,001    180,546       -          -            -       180,546
Stock issued for oil and gas
  royalties                      180,000     22,500       -          -            -        22,500
Stock issued for exercise of
  options                        150,000     22,500       -          -            -        22,500

Stock issued for services         63,917      7,990       -          -            -         7,990

Time and office expenses
    contributed by Officer            -          -     1,800         -            -         1,800


Net loss                              -          -        -     (63,530)          -       (63,530)
                               --------- ---------- --------  ---------    ---------    ---------

Balance, September 30, 2003    7,286,660 $1,220,247 $ 29,100  $(433,550)   $    (294)   $ 815,503
                               ========= ========== ========  =========    =========    =========
</TABLE>








See accompanying selected information.
                                    6

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                  AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

                         STATEMENTS OF CASH FLOWS
          For the Nine Months Ended September 30, 2003 and 2002
                               (Unaudited)

                                                          2003         2002
                                                       ---------    ---------
CASH FLOWS (USED IN) OPERATING ACTIVITIES
  Net (loss)                                           $ (63,530)   $ (57,644)
  Adjustments to reconcile net (loss) to cash
     used in operating activities:
     Depletion and amortization                            2,628        4,147
     Allowance for excess oil and gas costs                  850        6,356
     Expenses contributed by officer                       1,800        2,400
     Stock issued for services                             7,990           -
  Changes in operating assets and liabilities:
     Royalties receivable                                  2,339         (788)
     Accounts payable and accrued expenses                20,350       13,885
                                                       ---------    ---------
  Net Cash Used In Operating Activities                  (27,573)     (31,644)
                                                       ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of oil and gas interests                      (47,835)      (8,250)
                                                       ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES
  Stock issued for cash                                   22,500           -
  Loans from officers                                     54,500       40,000
                                                       ---------    ---------
  Total Cash Provided by Financing Activities             77,000       40,000
                                                       ---------    ---------

NET DECREASE IN CASH                                       1,592          106

CASH, BEGINNING OF PERIOD                                  8,622        7,060
                                                       ---------    ---------

CASH, END OF PERIOD                                    $  10,214    $   7,166
                                                       =========    =========

SUPPLEMENTAL CASH FLOW INFORMATION:

Interest and Income Taxes Paid
   Income taxes                                        $   2,274    $   1,595
   Interest expense                                        7,479        7,512

Non-Cash Transactions
   Contributed services and office space                   1,800        2,400
   Stock issued for oil and gas working interests        180,546      298 786
   Stock issued for oil and gas royalty interests         22,500           -
   Stock issued for services                               7,990           -



See accompanying selected information.
                                    7

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                  AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.
              SELECTED INFORMATION FOR FINANCIAL STATEMENTS
                               (Unaudited)
                            September 30, 2003



NOTE 1:   BASIS OF PRESENTATION

The accompanying unaudited  consolidated financial statements have been
prepared in accordance with generally accepted accounting principles 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, 2002.  In the opinion of Management, all
adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included.  The report of Robert Early
and Company,  P.C. commenting on their review accompanies the financial
statements included in  Item 1 of Part 1.  Operating results for the nine-
month  period ended  September 30, 2003, are not necessarily indicative of
the results that may be expected for the year ending December 31, 2003.


NOTE 2:   GOING CONCERN CONSIDERATIONS

The Company has neither 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 operated over the past year based on loans from its officers.
There is no guarantee that such officers 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 in order 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 $300 and $500 per quarter for the first two quarters of 2003
and 2002, respectively.  The value of office space utilization has been
estimated at $300 per quarter for both years.  These costs have been
recorded as expenses and as Additional Paid in Capital.


                                    8

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NOTE 4:   U.S. DRILLING ACTIVITY

During July 2002, the Company purchased a one-eighth (1/8) working
interest in developmental wells on the Parsley Lease in Kentucky in
exchange for the issuance of restricted stock.  The total drilling program
called for the drilling of fifty wells on this property with an estimated
cost of $80,000-$90,000 ($10,000-$11,250 for the Company's interest) per
well.  The Company has a well-by-well approval basis for its participation
and thus may decline to participate in any well.  The agreement with the
operator is that all of the Company's costs will be paid via the issuance
of restricted common stock valued at $1 per share.  The Company's
President has acquired an equal one-eighth participation interest in this
field.

During January 2003, the Company issued 116,728 restricted shares for its
portion of the drilling costs of eight wells which were drilled during
February and March.  An additional 104,433 shares were issued during May
2003 for wells drilled during May and June. The Company has issued an
additional 279,840 restricted shares during September 2003 that were to
pay for drilling during the third quarter and completion and other costs
to be incurred through the end of 2003.  Through September 2003, 34 wells
have been drilled and shown capable of producing hydrocarbons.

Some of these wells have been completed as oil wells, although no oil had
been sold as of September 30.   Oil is being sold and revenues are
expected to begin during October 2003.  Geological analysis has indicated
that completed gas wells have identified producible zones with significant
potential.  Gas production tests are being performed to estimate
sustainable production levels.  This will provide the information needed
to be able to  plan and implement a gas gathering system in the field.
There has been no marketable gas production because the gathering system
has not been in place.  As a result, estimating the timing and quantities
of producible gas is still a function of estimating the timing of
installation of the gathering system and processing plant required to make
the gas marketable.


NOTE 5:   AUSTRALIAN CONCESSIONS

During March 2003, the Company was notified of the completion of
negotiations regarding Native Title on three of its onshore concessions in
South Australia; CO-2000A, CO-2000B, CO-2000E.  The negotiated settlement
called for the payment by the Company and its partners of $A105,000,
($US65,000) to the Aborigine's for damages and rights to explore on the
concessions.  The Company's half of this requirement was paid by its
President in April 2003 and was recorded as a note payable to him.  (See
discussion at Related Party Transactions.)  Now that the Native Title
issues have been resolved, these concessions have been converted to
Petroleum Exploration Licenses and annual exploration requirements set out
in the applications (as discussed in the Company's annual report on Form
10-KSB) began to run in April 2003.  The Company incurred  $15,335 for its
share of legal costs related to the Native Title negotiations.

In September 2003, the Company acquired a .003% interest in PEL 88 for
180,000 shares of restricted common stock from Australian Grazing and
Pastoral Pty.  Ltd., an Australian entity owned by the Company's
Secretary. The operator of this property is scheduled to start drilling
during the fourth quarter of 2003.

                                    9

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NOTE 6:   NOTE PAYABLE TO BANK

The Company has renewed its note payable to the First National Bank of
Cisco for an additional 90 days.  This note, bearing interest at 4%,
matures on December 30, 2003.  This note is secured by Certificates of
Deposit with the bank in the same amount.


NOTE 7:   RELATED PARTY TRANSACTIONS

As mentioned in Note 5, the Company's President paid the Company's half
($32,500) of the settlement with the Aborigines.  This payment was reduced
to a note payable bearing interest at 4.5% and maturing in April 2004. In
addition, the Company's Secretary, loaned the Company $22,000 during June
2003.  This loan bears interest at 4.5% and is due in June 2004.

Also, as mentioned in Note 5, the Company has acquired an interest in PEL
88 from an entity owned by its Secretary.


NOTE 8:   STOCK OPTIONS

On June 30, 2003, the Board of Directors granted themselves an option,
good for 90 days, to purchase 50,000 shares each (a total of 250,000
shares) of restricted stock from the Company at the bid price of the stock
on June 30, 2003 ($0.15 per share).  This option was intended to
compensate the directors for their years of service while bringing some
much needed funds to the Company.  The directors have received no
compensation for their services since the inception of the Company.
During August 2003, three directors exercised their options for 150,000
shares and total cash of $22,500.


NOTE 9:   STOCK TRANSACTIONS

In addition to stock transactions described in Notes 4, 5, and 8, the
Company has issued 63,917 to an individual for his services to the Company
during the past year.














                                    10

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

General Discussion:

The Company has continued to be active in oil and gas as well as royalty
opportunities both domestically and internationally. As necessary, the
Company's President has been active in determining the Company's financial
requirements due to his substantial financial position. The Company
participated in the drilling of 17 wells in Kentucky during the quarter,
all of which were successful.

Shareholder exposure is extensive as ACOR is holding interests in areas of
the World where gigantic oil and gas fields are being explored and
produced.

Australia is extremely active. ACOR holds large acreage positions in the
Cooper/Eromanga Basin onshore and overriding royalties offshore.

Australia -- Offshore Victoria

Timely important news   VIC/P45   The Operator, BHP Billiton, is currently
moving a giant rig, capable of drilling 20,000-foot deep, to Permit 45 to
drill the Megamouth #1 well, which is located 8 kilometers east of the
Kingfish Field and around 10 kilometers to the south of the Halibut Field.
BHP completed the 3-D seismic over the entire VIC/P45 area at an estimated
cost of $US20,000,000.

The Company has a 0.05% Overriding Royalty under Permit 45 and this is the
first well to be drilled on a giant exploration program which will be the
largest since 1980, according to BHP Billiton.

This Prospect is close to some of the best oil production in Australia.
The Kingfish Field has produced 1.1 billion barrels of oil from 41 wells
and starts 1.5 miles from our override on Permit 45.  BHP Billiton is the
operator of Permit 45 and owns 50% of the Kingfish Field.  Exxon owns the
remaining 50% of the Kingfish Field.  An independent reserve estimate
indicates possible reserves of 350 million barrels of oil and 4 trillion
cubic feet of gas for Permit 45.

This is the first drilling activity on an offshore concession in which
ACOR holds an interest.

Permit 53, north of Permit 45 and the Kingfish Field, is also in a
strategic location surrounded by major producing oil and/or gas fields,
placing it in the center of giant fields.  Permit 53 contains four major
structures with estimated reserves of 167,000,000 barrels of oil, as
reported in Report 67 of the Victorian Initiative for Minerals and
Petroleum Report.  The working interest holder and operator of Permit 53
is Australia Crude Oil Company, Inc., which is a member of the Texas Crude
Group of Companies. This group has extensive onshore and offshore
experience.  ACOR holds a 0.05% Overriding Royalty Interest in Permit 53.
Seismic review of this area is in progress.

Note that the Company, as an overriding royalty interest holder, incurs no
expense for exploration and development of Permits 45 and 53.


                                    11

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Australia -- Cooper/Eromanga Basin

On October 30, 2003, the Board of Directors of ACOR agreed to purchase a
2% Carried Working Interest on the first well to be drilled on PEL 100,
located in the Cooper Basin.  This means that the Company does not pay for
its share of the costs of this well, but that the Company would incur
charges of its 2% share of the costs of all additional wells drilled.
Cooper Energy, NL should begin the drilling of this first well on PEL 100
in March 2004.  Drilling was originally scheduled to begin no later than
2005.

Cooper Energy, NL drilled an 8,000-foot well on Permit 88, the Eucalyptus
#1.  This was into a well-defined anticlinal trap in the northern portion
of the Patchawarra Trough of the Cooper Basin.  The well was dry, but had
a show at 6,000-feet.  The well appeared to be slightly off structure and
Cooper Energy intends more drilling on Permit 88.  ACOR holds a 3/10th of
1% Overriding Royalty Interest under Permit 88.  Cooper Energy states on
it's web site that the well indicated an estimated potential of 2.8 to 9.2
million barrels of oil.  This is one of 20 structures that have been
located on Permit 88.  Cooper Energy intends to continue to develop Permit
88 using additional seismic to try to improve forecasts of approximate
drilling structures.  On the adjoining PEL to the south, Cooper Energy has
struck a well that tested at 9 million cubic feet of gas per day on drill
stem test and they are completing the well.

PEL 108, PEL 109, and PEL 112 are concessions in which the Company owns
50% Working Interests.  The Company will attempt to drill these
concessions or make farm-outs.  ACOR has an option to acquire the
remaining 50% Working Interests for 400,000 shares of the Company's common
stock.

Cooper Energy has recently discovered 3 new fields on a Permit which
adjoins the Company's PEL 112.  The first well had an initial potential
2,100 barrels per day, the second had an initial potential of 500 barrels
per day, and the third had an initial potential of 3,000 barrels per day.
This upgrades the prospectivity of the 818,000 ACOR-Sakhai area PEL 112.

The Cooper/Eromanga Basin is the largest Australian onshore producing
basin.  The Company holds concessions covering 12,026,800 surface acres.
In addition, the Company also holds 100% Net Working Interests on
7,565,674 acres in the Cooper/Eromanga Basin.  The Cooper Basin includes
portions of both South Australia and Queensland.

Kentucky

Subsequent to the end of the quarter, the Company hired an independent
testing service, Production Meter & Testing, to do preliminary testing on
the several wells in Edmonson County, Kentucky.  The results of the
testing showed that the wells have hydrocarbons sufficient to support
commercial production.  The next phase of the Kentucky project is
financing the gas plant, pipeline and gathering system (Discussed below).
This oil and gas field is developing over an area 6 miles long and 3 miles
wide.

The Operator stated the Denison #1 well flowed oil, which filled a 210-
barrel test tank in 24 hours.  The well could not be tested for gas due to
the fluid volume of the oil.

                                    12

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Mr. Robert Thorpe of Resource & Energy Technologies Company, the operator
of the Kentucky wells in the Park City Gas Field and Gladys North Oil
Field, stated he intended to complete all drilling by the end of December
2003.

The following wells were reported by Mr. Thorpe as being in various stages
of either completed, to be logged, drilled or will be drilled:

                  Edmonson County -- Park City Gas Field

     Tarter #1                McCombs #2               Honeycutt #2
     McCombs #1               Hatler #2                Davis Harvey #1
     Tarter #3                Tarter #4                Kersey #2
     Kersey #4                Sanders #1               Sanders #2
     Prather #1               Prather #2               Parson #1
     Houchins #1              Houchins #2              Dennison #1
     Dennison #2              Dennison #3              Dennison #4
     Dennison #5              Tim Davis #1             Sebaugh #1
     Johnson #1               Reynolds #1              Bewley #1

                  Adair County -- Gladys North Oil Field

     Jeff Janes #1            Jeff Janes #2            Jeff Janes #3
     Jeff Janes #4            Jeff Janes #5            Jonnie Janes #1
     Jonnie Janes #2          Jonnie Janes #3          Jonnie Janes #4
     Jonnie Janes #5          Eugene Janes #1          Eugene Janes #2


The McCombs #1 could not be tested due to a 600-foot column of oil, which
is now being swabbed.  The McCombs #2 could not be tested as the well was
on a vacuum, but the testing service felt oil was causing the problem, not
water.  Both the McCombs #1 and the Dennison #1 gave up clean oil and no
water.  The Dennison #1 is 15,320-feet from the McCombs #1.  Oil is being
trucked to the refinery and revenues from the oil will begin soon.

Drilling costs for ACOR are paid with restricted stock based on a value of
$1.00 per share.  Ely Sakhai, President of ACOR, is paying cash for his
equal portion of the drilling costs.  ACOR has a 1/8th interest and Mr.
Sakhai has a 1/8th interest in all wells drilled to develop the Park City
Gas Field.

Currently negotiations are being held to finalize a membrane type gas
plant and gathering system to process and sell the gas commercially.  As
plant and gathering system are essential to the economic viability of the
project, no assurance can be given that the plant and gathering system can
be financed on terms acceptable to the Company.  The turnkey price for the
plant and gathering system is estimated at $US5,000,000.  This is the most
modern technology available and will process 5,000,000 cubic feet per day.

The gas must be processed prior to sale due to the high nitrogen content,
which must be reduced from 16% to 4% for the pipeline to accept the gas.
Also, other liquids must be stripped from the gas prior to acceptance by
the pipeline.

The Company has an agreement with the Operator to decline participation on
a well-by-well basis.  This contractual agreement is intended to protect
the interest of ACOR and its shareholders.

                                    13

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LIQUIDITY AND CAPITAL RESOURCES

The principal assets of ACOR are oil and gas properties, consisting of
7,565,674 net 100% working interest acres and overriding royalties under
12,026,800 surface acres.

On September 30, 2003, the Company reported assets of $1,145,239 compared
to $898,584 and $1,032,700 for December 31, 2002 and June 30, 2003,
respectively.  The increase of $112,539 since the first of the year is
attributable to the acquisition of the one-eighth interest in the Park
City Oil & Gas Field in Kentucky.  The Company's Total Current Assets as
of September 30, 2003 were $261,438 compared to the June 30, 2003 total of
$255,160 and a total of $262,185 on December 31, 2002, reflecting nominal
change.  Total Current Liabilities of $329,736, $305,757 and $254,887 on
September 30, 2003, June 30, 2003, and December 31, 2002, reflects a
liquidity ratio of current assets to current liabilities of 0.79 to 1.0
and is approximately the same for both December 31, 2002 and June 30,
2003.

The Company's total cash position was $260,214 on September 30, 2003
compared to $252,757 on June 30, 2003, $258,622 on December 31, 2002 and
$257,166 on September 30, 2002.  The Company continues to have no long-
term debt.   Stockholders' Equity increased when comparing September 30,
2003 ($815,503) to the previous quarter, June 30, 2003 ($726,943) and to
September 30, 2002 ($589,432).  The increase in Stockholders' Equity is
directly related to the acquisition of the Park City Oil & Gas Field in
Kentucky previously discussed in this report.  The increase in
Stockholders' Equity from September 30, 2003 until June 30, 2003 was also
related to the acquisition of interests in new wells on the Kentucky
property.

Management believes that its current cash balance, supplemented by loans
from officers, is sufficient to fund immediate needs.  However, long-term
plans are expected to require significant additional capital and there is
no assurance that the Company will be able to obtain such funds or to
obtain the required capital on terms favorable to the Company.

The Company plans to farm-out interests in oil and gas concessions it
acquires in order to pay for seismic, drilling, etc.  The Company may also
satisfy its future capital requirements by selling the Company's common
stock.  If unable to 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.


RESULTS OF OPERATIONS

Oil and gas revenues decreased when comparing the three months ended
September 30, 2003 ($662) to the three months ended June 30, 2003
($1,534).  Oil and gas revenues declined for the three months ended
September 30, 2003 when comparing to the three months ended September 30,
2002, being $662 and $1,847, respectively.  These fluctuations in revenues
are primarily due to a decline in production and an adjustment for
overpayment on our overriding royalty interest in ATP 267P.  Total
Operating Expenses were $32,372 for the three months ended September 30,
2003 compared to $21,471 for the quarter ended June 30, 2003 and $19,676

                                    14

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<PAGE>

for the three-month period ended September 30, 2002.  The increase in
operating expenses for the current quarter over the quarter ended June 30,
2003 is due to an increase in personnel costs.  The current quarter
compared to the same period last year reports an increase of $13,141 in
operating expenses.  The Company had a net loss of $34,991 for the three
months period ended September 30, 2003 compared to a net loss of $20,906
for the same period ended September 30, 2002.

In comparing the nine months figures for September 30, 2003 to September
30, 2002, oil and gas revenues decreased from $5,518 in 2002 to $4,226 in
2003.  Total Operating Expenses were $57,808 for the nine months ended
September 30, 2003 compared to $52,251 for the nine months ended September
30, 2002.  The $5,557 increase in operating expenses is due to an increase
in personnel costs in 2003.  The Company had a net loss of $63,530 and
$57,644, respectively, in comparing the nine months ended September 30,
2003 to the same period ended September 30, 2002.  The increase in the
Company's net loss is directly related to an increase in personnel costs
and other administrative expenses.


Disclosure Regarding Forward-Looking Statements

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-QSB, 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.


Item 3:   Controls and Procedures

   (a)  Within the 90-day period prior to the date of this report, the
        Corporation 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 pursuant to Rule 13a-14 of the
        Securities Exchange Act of 1934, as amended (the "Exchange Act").
        Based on that evaluation, the Chief Executive Officer and the
        Chief Financial Officer concluded that the Corporation's
        disclosure controls and procedures are effective in timely
        alerting them to material information relating to the Corporation
        required to be included in the Corporation's Exchange Act filings.

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



                                    15

<PAGE>
<PAGE>


PART II.   OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K

   Exhibit 99.1 -- Certification of President and Chief Executive Officer
                   Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant
                   to Section 906 of the Sarbanes-Oxley Act of 2002.

   Exhibit 99.2 -- Certification of Secretary and Chief Financial Officer
                   Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant
                   to Section 906 of the Sarbanes-Oxley Act of 2002.


   Reports on Form 8-K      None




                                SIGNATURES

In accordance with the requirements 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 12, 2003            /s/ ROBERT KAMON
                                     ----------------------------------------
                                     By: Robert Kamon, Secretary and
                                     Principal Financial Officer















                                     16

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<PAGE>
                              CERTIFICATION

I, Robert Kamon, Secretary, and Chief Financial Officer certify that:

1.  I have reviewed this quarterly report on Form 10-QSB of Australian-
Canadian Oil Royalties Ltd.;

2.  Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3.  Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and I have:

  (a)    designed such disclosure controls and procedures to ensure that
  material information relating to the registrant, including its consolidated
  subsidiaries, is made known to us by others within those entities,
  particularly during the period in which this quarterly report is being
  prepared;

  (b)    evaluated the effectiveness of the registrant's disclosure controls
  and procedures as of a date within 90 days prior to the filing date of this
  quarterly report (the "Evaluation Date"); and

  (c)    presented in this quarterly report our conclusions about the
  effectiveness of the disclosure controls and procedures based on our
  evaluation as of the Evaluation Date;

5.  The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing
equivalent function):

  (a)    all significant deficiencies in the design or operation of internal
  controls which could adversely affect the registrant's ability to record,
  process, summarize and report financial data and have identified for the
  registrant's auditors any material weaknesses in internal controls; and

  (b)    any fraud, whether or not material, that involves management or
  other employees who have a significant role in the registrant's internal
  controls; and

6.  The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

Date:  November 12, 2003

/s/ ROBERT KAMON
Robert Kamon, Secretary
and Chief Financial Officer


<PAGE>
<PAGE>
                              CERTIFICATION

I, Ely Sakhai, President and Chief Executive Officer certify that:

1.  I have reviewed this quarterly report on Form 10-QSB of Australian-
Canadian Oil Royalties Ltd.;

2.  Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;

3.  Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant and I have:

  (a)    designed such disclosure controls and procedures to ensure that
  material information relating to the registrant, including its consolidated
  subsidiaries, is made known to us by others within those entities,
  particularly during the period in which this quarterly report is being
  prepared;

  (b)    evaluated the effectiveness of the registrant's disclosure controls
  and procedures as of a date within 90 days prior to the filing date of this
  quarterly report (the "Evaluation Date"); and

  (c)    presented in this quarterly report our conclusions about the
  effectiveness of the disclosure controls and procedures based on our
  evaluation as of the Evaluation Date;

5.  The registrant's other certifying officer and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing
equivalent function):

  (a)    all significant deficiencies in the design or operation of internal
  controls which could adversely affect the registrant's ability to record,
  process, summarize and report financial data and have identified for the
  registrant's auditors any material weaknesses in internal controls; and

  (b)    any fraud, whether or not material, that involves management or
  other employees who have a significant role in the registrant's internal
  controls; and

6.  The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.

Date:  November 12, 2003

/s/  ELY SAKHAI
Ely Sakhai, President and
Chief Executive Officer