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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ITEM 8A.      CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

In connection with the preparation of this annual report on Form 10-KSB/A, an
evaluation was carried out by our management, with the participation of the
Chief Executive Officer and Principal Accounting Officer, of the effectiveness
of our disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act")) as of
December 31, 2007. Disclosure controls and procedures are designed to ensure
that information required to be disclosed in reports filed or submitted under
the Exchange Act is recorded, processed, summarized, and reported within the
time periods specified in the SEC rules and forms and that such information is
accumulated and communicated to management, including the Chief Executive
Officer and the Principal Financial Officer, to allow timely decisions regarding
required disclosures.

Based on that evaluation, our management concluded that our disclosure controls
and procedures were not effective in reporting information required to be
disclosed within the time periods specified in the SEC's rules and forms because
of the failure to report all the required information concerning "Controls and
Procedures" in the Form 10-KSB for the year ended December 31, 2007 filed on
April 14, 2008. Even though management had timely performed its assessment of
internal control over financial reporting, the Company failed to include that
report in its Form 10-KSB. Management has taken steps to insure that all future
filings contain all required disclosures.
<PAGE>


Management's Report on Internal Control Over Financial Reporting

Management of our company is responsible for establishing and maintaining
adequate internal control over financial reporting. Our company's internal
control over financial reporting is a process, under the supervision of the
Chief Executive Officer and the Principal Accounting Officer, designed to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of the Company's financial statements for external purposes
in accordance with United States generally accepted accounting principles.
Internal control over financial reporting includes those policies and procedures
that:

o      Pertain to the maintenance of records that in reasonable detail
       accurately and fairly reflect the transactions and dispositions of the
       Company's assets;

o      Provide reasonable assurance that transactions are recorded as necessary
       to permit preparation of the financial statements in accordance with
       generally accepted accounting principles, and that receipts and
       expenditures are being made only in accordance with authorizations of
       management and the Board of Directors; and

o      Provide reasonable assurance regarding prevention or timely detection of
       unauthorized acquisition, use, or disposition of the Company's assets
       that could have a material effect on the financial statements.

Our management conducted an assessment of the effectiveness of the Company's
internal control over financial reporting as of December 31, 2007, based on
criteria established in Internal Control - Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this
assessment, our management concluded that there was no material weakness in our
internal controls over financial reporting, and accordingly, our controls are
effective.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect all misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions or that the degree of
compliance with the policies or procedures may deteriorate.
<PAGE>


This annual report does not include an attestation report of our independent
registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by the Company's
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Company to provide only management's
report in this annual report.

Changes in Internal Control over Financial Reporting

There were no changes in internal control over financial reporting (as defined
in Rule 13a-15(f) of the Exchange Act) during the quarter ended December 31,
2007, that materially affected, or are reasonably likely to materially affect,
our internal control over financial reporting.




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                                   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:    September 22, 2008               /s/    Andre Sakhai
                                           ----------------------------------
                                           Andre Sakhai, President & CEO


Dated:    September 22, 2008               /s/   Bernard Lipton
                                           ----------------------------------
                                            Bernard Lipton CFO