Highlights

  • Australian Oil Co completed its maiden Crude Oil lifting from the Emu Apple Oil Field.
  • The first lifting totalled 422 barrels at an average realised oil price of AUD 151 per barrel.
  • The company plans further well intervention work aimed at improving production rates.
  • Riverslea-3 oil assays and seismic interpretation work are underway across PL 30.
  • Preliminary mapping at the Major Gas Field identified potential additional undrained gas accumulation

Australian Oil Company Ltd (ASX:AOK) has provided a broad operational update covering production, development and exploration activities across its Surat Basin Assets in Queensland, with the company highlighting progress at the Emu Apple Oil Field, Riverslea and the Major Gas Field.

The latest update included maiden oil lifting activity, upcoming production optimisation initiatives, new exploration interpretation work and participation in Queensland’s recent oil and gas licensing round as the company continues advancing its domestic energy portfolio.

Shares of Australian Oil Company were trading flat at AUD 0.0030 during the afternoon session on 15 May 2026.

Australian Oil stated that activity across its Surat Basin projects is progressing alongside evaluations of additional opportunities aimed at expanding and diversifying its asset base.

Maiden Oil Lifting Completed at Emu Apple

The company confirmed that the first crude oil lifting from the Emu Apple Oil Field (PL 264) occurred on 31 March 2026 under its existing crude oil and condensate lifting agreement with IOR Energy Pty Ltd.

According to Australian Oil, the maiden lifting totalled 422 barrels.

The company clarified that the previously reported 600-barrel figure disclosed in its quarterly activities report was incorrect due to one storage tank being mistakenly identified as containing oil rather than condensate.

Australian Oil stated that the first lifting achieved an average oil price of AUD 151 per barrel, resulting in proceeds of approximately AUD 63,722.

Funds associated with the maiden sale are expected to be received during May.

The company also advised that the next lifting is scheduled to occur on or before 18 May 2026 and is anticipated to involve approximately 400 barrels.

Management noted that Brent-linked pricing for future liftings is expected to reflect higher prevailing oil prices influenced by ongoing geopolitical conditions.

Production Optimisation Plans Underway

Australian Oil stated that production levels at Emu Apple are currently averaging approximately 15 barrels of oil per day with a water cut of around 30%.

The company outlined several short-term initiatives aimed at improving production performance.

Immediate plans include:

  • Acidisation of the Emu Apple-1 well
  • A condensate wash program designed to enhance production rates

The company explained that condensate currently stored onsite is intended to be used alongside acid treatment as part of the production enhancement strategy.

Australian Oil also confirmed it is assessing longer-term production improvement opportunities involving potential well intervention activities.

These studies form part of broader strategic initiatives previously disclosed to the market.

Riverslea Development Activities Continue

Within Petroleum Lease 30 (PL 30), Australian Oil reported further development activity at the Riverslea oil field.

The company confirmed that a wellhead oil sample from Riverslea-3 has been collected for assay testing.

According to management, assay results will support commercial discussions and negotiations tied to a potential crude oil sales agreement and future reactivation of the Riverslea oil field.

The assays are expected to be completed by the end of May.

Australian Oil also stated that feasibility studies have commenced with rig service companies and coil tubing vendors regarding possible intervention activities at Riverslea-3.

Additional intervention work at Riverslea-1 and Yapunyah-1 is also being evaluated as part of broader plans to restart production from both oil pools.

The company noted that sustained oil prices continue supporting assessment of these production restart initiatives.

Exploration Interpretation Expands Across PL 30

Australian Oil also provided an exploration update associated with the broader Greater Riverslea area.

The company confirmed that 3D seismic data covering PL 30 has been loaded and interpretation work is now underway.

Management stated that the interpretation process is focused on maturing exploration prospects for future drilling activities while integrating geochemical and iodine databases into the analysis.

Preliminary mapping identified additional exploration potential up-dip of the Annabelle-1 area in the southern section of PL 30.

The company said these prospects Warrant further investigation.

Australian Oil indicated that future disclosures to the market are expected to include:

  • Prospects and leads inventories
  • Resource estimates
  • Risking assessments

Seismic interpretation programs are commonly used in hydrocarbon exploration to refine geological understanding and identify additional drilling opportunities across producing basins.

Preliminary Mapping at Major Gas Field

Another key focus of the update involved development work at the Major Gas Field within PL 512.

Australian Oil stated that preliminary mapping suggests the shut-in Major-4 production well sits near the gas-water contact on the edge of the gas pool.

The company believes the well may have potential to return to production on a cyclical basis to help manage future water production.

Importantly, preliminary mapping also indicated that a potentially material gas accumulation may remain undrained up-dip of Major-4.

According to management, this area may not have been accessed by any existing Major wells.

Further mapping and volumetric work is expected to continue over the coming weeks.

Australian Oil noted that these technical studies are being conducted alongside commercial discussions regarding future gas sales from the Major field through Petroleum Pipeline Licence 22 into the Silver Springs Gas Plant.

Queensland Licensing Round Participation

Beyond existing assets, Australian Oil confirmed participation in Queensland’s latest oil and gas licensing round.

The company stated that it submitted bids for two exploration blocks during the recent process.

Management also noted that several additional opportunities within the Surat Basin are currently under evaluation.

In parallel, Australian Oil said it is reviewing international opportunities as part of its strategy to diversify its portfolio of assets.

The company’s latest comments suggest that broader portfolio expansion remains part of its ongoing growth strategy in addition to advancing existing Australian operations.

Management Commentary Focuses on Expansion Strategy

Managing Director Kane Marshall stated that the company’s current activity comes during a period of favourable Commodity pricing and improving market sentiment.

He noted that Australian Oil continues advancing exploration and development activities within the Surat Basin while also pursuing additional new venture opportunities.

Management further highlighted the importance of energy security within Australia as the company works to strengthen and expand its operational footprint.

The latest operational update reflects activity spanning production optimisation, field redevelopment, exploration interpretation and new venture evaluation across multiple assets.

About Australian Oil Company

Australian Oil Company Ltd is an Australian-based energy company focused on oil and gas exploration and production opportunities.

The company’s primary Australian focus is within the Surat Basin in Queensland, where it holds interests across multiple conventional oil and gas assets.

Australian Oil also maintains a portfolio of producing Natural Gas and oil wells in California.

Its broader strategy involves pursuing under-explored energy opportunities located near Supply-constrained markets while evaluating additional producing and exploration assets aligned with long-term portfolio objectives.

Investor Takeaway

Australian Oil Company’s latest operational update highlighted activity across several areas of its Surat Basin portfolio, including production, field redevelopment, seismic interpretation and exploration planning.

The maiden oil lifting from the Emu Apple Oil Field, combined with planned production optimisation initiatives and further development studies at Riverslea and the Major Gas Field, reflects continued operational progress across the company’s Queensland assets.

At the same time, seismic interpretation work and participation in Queensland’s latest licensing round suggest Australian Oil continues pursuing broader exploration and expansion opportunities.

Investors are likely to monitor upcoming developments including:

  • Additional oil liftings from Emu Apple
  • Riverslea assay results
  • Seismic interpretation outcomes
  • Mapping results at the Major Gas Field
  • Exploration licensing outcomes in Queensland