UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                  FORM 10-KSB/A

                 Annual Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                   For the fiscal year ended December 31, 2007

                         Commission File Number: 0-29832

                     AUSTRALIAN-CANADIAN OIL ROYALTIES LTD.


    British Columbia, Canada                                   75-2712845
---------------------------------                        ---------------------
 (State or other Jurisdiction of                            (IRS Employer
  Incorporation or Organization)                          Identification No.)

                                   PO Box 1629
                         1301 Ave. M, Cisco, Texas 76437
                        --------------------------------
                    (Address of Principal Executive Offices)

                                 (254) 442-2638
                (Issuer's Telephone Number, including Area Code)

        Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12 (g) of the Act:
                                                      Common Stock, no par value

Indicate by check mark whether the issuer (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 issuer 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 if disclosure of delinquent filers in response to Item
405 of Regulation S-K (section 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of issuer's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-KSB or any amendment to this Form 10-KSB [X]

Indicate by check mark whether the  registrant  is a shell  company (as defined
in Rule12b-2 of the Exchange  Act).   Yes [   ]  No [X]

State issuer's revenues for its most recent fiscal year
(ending December 31, 2007): $70,798.

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was last sold, or average bid and asked price of such common equity, as of the
last business day of the registrant's most recently completed fiscal quarter:
March 31, 2008 was $1,948,054.

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of April 8, 2008 (the last practicable date): Class: Common
Stock, no par value - Outstanding as of April 8, 2008 was 13,741,912. The
Company's OTC Bulletin Board Symbol is "AUCAF".


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                                    PART III

ITEM 9A.  CONTROLS AND PROCEDURES

Internal Control over financial reporting, no matter how well designed, has
inherent limitations. Therefore, even those systems determined to be effective
can provide only reasonable assurance with respect to financial statement
preparation and presentation. Further, because of changes in conditions, the
effectiveness of internal control over financial reporting may vary over time.

Under the supervision and with the participation of our management, including
our chief executive officer and chief financial officer, we conducted an
evaluation to assess the effectiveness of our internal control over financial
reporting as of December 31, 2007. Based on that evaluation, we believe that, as
of December 31, 2007, our internal control over financial reporting is
effective.

Subsequent to the evaluation and through the date of this filing of Form 10-K
for fiscal year 2007, there have been no significant changes in our internal
controls or in other factors that have materially affected, or are reasonably
likely to materially affect, our internal controls.


<PAGE>


                                   SIGNATURES

In accordance with Section 13 or 15(d) 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.

Dated:    August 18, 2008                   /s/    Andre Sakhai
                                            ------------------------------------
                                            Andre Sakhai, President & CEO


Dated:    August 18, 2008                   /s/   Bernard Lipton
                                            ------------------------------------
                                             Bernard Lipton CFO