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 JUNE 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 Securities Exchange Act of 1934 during
the preceding 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 small reporting company.

( ) Large accelerated filer ( ) Accelerated filer ( ) Non-accelerated filer
( X ) Smaller reporting company

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 18,327,030 shares of common stock,
                 No Par Value, outstanding as of July 28, 2009



<PAGE>

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


<TABLE>
<CAPTION>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.
                                 BALANCE SHEETS

                                                                  June 30,       December 31,
                                                                   2009              2008
                                                                -----------    -----------
                                                                (unaudited)
                                     ASSETS

CURRENT ASSETS
<S>                                                             <C>            <C>
   Cash                                                         $    14,550    $    42,677
   Certificate of deposit                                              --        1,000,000
   Accounts receivable                                                8,567         10,899
                                                                -----------    -----------
         Total Current Assets                                        23,117      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                                     24,782         23,672
   Accumulated depreciation and depletion                          (190,385)      (154,763)
                                                                -----------    -----------

         Net Property and Equipment                                 938,001        972,513
                                                                -----------    -----------

OTHER ASSETS                                                          1,084          1,084
                                                                -----------    -----------
         TOTAL ASSETS                                           $   962,202    $ 2,027,173
                                                                ===========    ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable                                             $     2,988    $     1,729
   Accrued expenses                                                  71,164         81,046
   Loans from officers                                               25,000         50,000
   Notes payable to bank                                               --        1,000,000
                                                                -----------    -----------
         Total Current Liabilities                                   99,152      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
        18,327,030 and 16,465,458 shares in 2009 and 2008
         issued and outstanding)                                  3,566,009      3,490,546
   Additional paid in capital                                       168,751        167,151
   Accumulated deficit                                           (2,871,714)    (2,763,303)
   Other comprehensive income:
        Foreign currency translation adjustment                           4              4
                                                                -----------    -----------
         Total Stockholders' Equity                                 863,050        894,398
                                                                -----------    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                      $   962,202    $ 2,027,173
                                                                ===========    ===========
</TABLE>

                                      -2-
<PAGE>


<TABLE>
<CAPTION>



                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

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


                                                Three Months                             Six Months
                                          2009                2008                 2009               2008
                                    ----------------    ----------------    ----------------    ----------------

<S>                                 <C>                 <C>                 <C>                 <C>
OIL AND GAS REVENUES                $          5,330    $         49,898    $         21,848    $         77,212

COST OF SALES
   Production taxes                             --                  --                  --                    26
   Depletion                                  17,281              20,655              34,562              24,143
                                    ----------------    ----------------    ----------------    ----------------

     GROSS PROFIT/LOSS                       (11,951)             29,243             (12,714)             53,043
                                    ----------------    ----------------    ----------------    ----------------

OPERATING EXPENSES
   Personnel costs                            22,510              79,630              36,471             151,083
   Professional fees                           6,601               9,768              25,517              33,048
   Promotion and advertising                   3,037               3,247              10,843              13,321
   Office expenses                             1,278               3,963               5,007               7,090
   Depreciation                                  530                 438               1,060                 875
   Directors' fees and other                     528               5,326               1,821               9,361
                                    ----------------    ----------------    ----------------    ----------------
         Total Operating Expenses             34,484             102,372              80,719             214,778
                                    ----------------    ----------------    ----------------    ----------------

OPERATING LOSS                               (46,435)            (73,129)            (93,433)           (161,735)

OTHER INCOME/(EXPENSE)
   Interest income                              --                  --                   959                --
   Interest expense                           (1,417)             (2,443)             (9,488)             (4,886)
                                    ----------------    ----------------    ----------------    ----------------

NET LOSS BEFORE INCOME TAXES                 (47,852)            (75,572)           (101,962)           (166,621)

   Australian income taxes                     1,267              15,191               6,449              22,512
                                    ----------------    ----------------    ----------------    ----------------

NET LOSS                            $        (49,119)   $        (90,763)   $       (108,411)   $       (189,133)
                                    ================    ================    ================    ================



BASIC (LOSS) PER COMMON SHARE       $          (0.00)   $          (0.01)   $          (0.01)   $          (0.01)
                                    ================    ================    ================    ================

Weighted Average Number of Common
  Shares Outstanding:
      Basic                               16,955,851          13,945,920          16,745,683          13,851,608
                                    ================    ================    ================    ================


See accompanying notes to financial statements.
</TABLE>

                                      -3-
<PAGE>

<TABLE>
<CAPTION>

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.

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



                                                          2009           2008
                                                      -----------    -----------
CASH FLOWS FROM OPERATING ACTIVITIES:

<S>                                                   <C>            <C>
Net loss                                              $  (108,411)   $  (189,133)
Adjustments to reconcile net (loss) to net cash
     provided by operations:
         Depreciation, depletion and amortization          35,622         25,018
         Value of expenses contributed by officers          1,600          1,600
         Stock issued for services                          5,000        177,642
Changes in:
     Receivables                                            2,332         (7,171)
     Prepaid expenses and other                              --          (21,870)
     Accounts payable and accrued expenses                 (6,519)        10,234
                                                      -----------    -----------

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES          (70,376)        (3,680)
                                                      -----------    -----------

CASH FLOWS FROM 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               43,360           --
     Surrender of certificate of deposit                1,000,000           --
     Reduction in notes payable to bank                (1,000,000)          --
                                                      -----------    -----------

NET CASH FLOWS PROVIDED FROM FINANCING ACTIVITIES          43,360           --
                                                      -----------    -----------

NET INCREASE (DECREASE) IN CASH                           (28,127)        (3,680)

         Cash, Beginning of Period                         42,677         71,777
                                                      -----------    -----------

         Cash, End of Period                          $    14,550    $    68,097
                                                      ===========    ===========



SUPPLEMENTAL DISCLOSURES:
     Cash payments for:
         Interest                                     $      --      $      --
                                                      ===========    ===========
         Australian income taxes                      $     6,449    $    19,079
                                                      ===========    ===========
     Non-Cash Investing and Financing Activities:
         Prepaid services                                    --          (44,000)
         Stock to be issued for services                     --           44,000
         Reduction in notes payable to officers           (68,360)          --
         Reduction in accrued expense                      (2,108)          --
         Stock issued for notes payable to officers        70,463
</TABLE>


                                      -4-
<PAGE>


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

                                  June 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-K
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 six-month period
ended June 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.



                                      -5-
<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 results 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
June 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 interests 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 finding 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 cover 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.

                                      -6-
<PAGE>


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 $A43 billion
worth of oil, gas and associated hydrocarbons per year (equivalent to about $110
billion in U. S. dollars) based on an oil price of $40 per 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.


The Company has overriding royalty interests in two permits in the Carnarvon
Basin which 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.

SUBSEQUENT ACTIVITY ON PROPERTIES:

Subsequent to June 30, 2009 the operator, Victoria Petroleum N.L. (Vicpet) for
the PEL 111 Joint Venture, advised 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.
The Short Term Production Test will continue over the next week to establish
stabilized production rates and reservoir pressure information for future
long-term production. 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. 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.

                                      -7-
<PAGE>


The plans are for the drilling rig to move to drill the Snatcher-2 Well located
2,949 feet northeast of Snatcher 1. Drill site preparation activities are in
progress on July 28, 2009 with drilling planned to commence on the Snatcher-2 in
approximately 7 days time.


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 and those not being amortized) reported at $1,103,604 on June 30,
2009, reporting no change since December 31, 2008.

The Total Current Assets decreased from December 31, 2008 to June 30, 2009 from
$1,053,576 to $23,117. 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 June 30, 2009, was $23,117 with Total Current Liabilities of $99,152, giving
a liquidity ratio of .233 to 1. The Company's Total Current Assets as of June
30, 2008, was $122,419 with Total Current Liabilities of $473,236, giving a
liquidity ratio of .25 to 1. The Company's cash position was $14,550 on June 30,
2009 compared to $42,677 and $68,097 on December 31, 2008 and June 30, 2008
respectively. The fluctuations in current assets from June 30, 2008 compared to
December 31, 2008 and June 30, 2009 is directly related to the amount of cash on
hand.

The Company's Total Assets on June 30, 2009 were $962,202 compared to $2,027,173
on December 31, 2008 and $1,033,118 on June 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 June 30, 2008 to June 30, 2009 is
related to the combination of reduction of cash and account receivables.

                                      -8-
<PAGE>


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

Stockholders' Equity increased when comparing June 30, 2008 ($559,882) to
December 31, 2008, June 30, 2009 being $894,398 and $863,050 respectively.
Stockholders' Equity decreased slightly from December 31, 2008 to June 30, 2009
due to less cash on hand on June 30, 2009.

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 June 30, 2008 the Company issued 133,334 restricted
shares (valued at $44,000) for services. During the quarter ended June 30, 2009
the Company issued 100,000 restricted shares (valued at $5,000) for services.
The number of shares issued and outstanding as of June 30, 2009 was 18,327,030.

RESULTS OF OPERATIONS

Oil and gas revenues received during the quarter ended June 30, 2009 was $5,330
compared to $49,898 for the quarter ended June 30, 2008. Oil and gas revenues
reported for the six months ended June 30, 2009 was $21,848 compared to $77,212
for the six months ended June 30, 2008 reflecting the impact of decline in oil
prices and the decline in flush production from the new additional wells drilled
on concessions ATP 267 and 299. 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 $34,484 for the three months ended June 30, 2009
compared to $102,372 for the quarter ended June 30, 2008. The principal reason
for the decrease is personnel costs were lowered from $79,630 to $22,510 and
directors and other fees were lowered from $5,326 to $528 due to less corporate
activity.

                                      -9-
<PAGE>


Total Operating Expenses were $80,719 for the six months ended June 30, 2009
compared to $214,778 for the six months ended June 30, 2008. The principal
reason for the decrease is due to Personnel costs decreasing from $151,083 to
$36,471.

The Company's operating loss was $46,435 for the quarter ended June 30, 2009
compared to an operating loss of $73,129 for the same period in 2008. As stated
above, the decrease in personnel costs and director fees was the principle cause
of operating losses to decrease by $26,694.

The Company did not report any interest income for the quarters ended June 30,
2008 and June 30, 2009. The Company did, however, incur interest expense of
$1,417 during the quarter ended June 30, 2009 compared to $2,443 interest
expense for the quarter ended June 30, 2008. The Company did not report any
interest income for the six months ended June 30, 2008; however, the Company did
have interest income of $959 for the six months ended June 30, 2009. The
Company's interest expense for the six months ended June 30, 2009 was $9,488
compared to $4,886 for the six months ended June 30, 2008.

The net loss for the quarter ended June 30, 2009 was $49,119 compared to a net
loss of $90,763 for the quarter ended June 30, 2008. The decrease in net loss is
primarily attributable to a decrease in personnel costs and director's and other
fees. The net loss for the six months ended June 30, 2009 was $108,411 compared
to a net loss of $189,133 for the six months June 30, 2008.


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 the past (2006 and 2007) to enter into farm-out
arrangements on concessions awarded to the Company and its partners. These
farm-out arrangements have allowed the Company to retain a carried interest and
in some cases receive cash consideration in addition to deferring the
exploration commitments on concessions to the buyers.

MATERIAL COMMITMENTS

The Company as of June 30, 2009 does not have any material work or exploration
commitments on its oil and gas interests in Australia as the Company has been
successful in entering into farm-out arrangements to transfer those exploration
costs to others in lieu of cash, carried working interests and/or an override.

                                      -10-
<PAGE>


PURCHASE OF SIGNIFICANT EQUIPMENT

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


RELATED PARTY TRANSACTIONS

During the second quarter of 2009, the Company paid $8,274 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 June 30, 2009, the Company had no off-balance sheet arrangements.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENT

The forward-looking statements in this Form 10-Q 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,
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. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a small 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.

As of June 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.

                                      -11-
<PAGE>


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 - Filed March 20, 2009 for change in Chief
         Financial Officer


                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                          Australian-Canadian Oil Royalties Ltd.



Date: July 29, 2009                       /S/ MAHNAZ NOURMAND
                                          --------------------------------------
                                          By: Mahnaz Nourmand,
                                              Principal Financial Officer


                                      -12-