Highlights

  • The Emu Apple-1 well intervention was completed, with test production of 10 to 20 barrels of oil per day and zero water cut, and about 14 barrels per day after the quarter.
  • Preparations advanced for restarting the Major Gas Field, alongside negotiation of a gas sales agreement, and planning continues to restart Riverslea.
  • Thomas Streitberg was appointed Executive Chairman and invested $300,000, and the $1,104,420 Tranche 2 placement balance was collected.
  • Cash was about $1.415 million at 30 September 2026, with California production at about 350 mcf per day.

Australian Oil Company Limited (ASX:AOK) has released its Quarterly Activities Report for the quarter ended 30 September 2026. The company is working to establish a producing oil and gas hub in Queensland’s Surat Basin, and the quarter included a successful well intervention, restart preparations at two fields, a new Executive Chairman and a capital raising.

Surat Basin Operations

At the Emu Apple Oil Field, the Emu Apple-1 intervention used a condensate backwash followed by an acid wash to remove paraffin build-up. Post-intervention production was 10 to 20 barrels of oil per day with no water cut, and about 14 barrels per day after quarter end. The company plans similar interventions and hydraulic pumping units at Emu Apple-2 and -3.

At the Major Gas Field, on-ground works to deliver gas to the Silver Springs Gas Plant advanced while a gas sales agreement is negotiated, with gas sales expected to start once both are complete. At Riverslea, crude samples were assayed and an oil and condensate lifting agreement with IOR Energy is being progressed, with civil works expected next quarter ahead of first oil.

California and New Ventures

California gas production rose to about 350 mcf per day after maintenance at the Rec Board wells, with CityGate gas prices above US$3 per MMBTU delivering breakeven and at times positive cash flow. Adding compression could lift flows towards about 500 mcf per day. The company is reviewing its California acreage, which it says lacks the high-impact potential of its other opportunities.

AOK is discussing Surat Basin acreage expansion with several counterparties and is negotiating with regulators in two jurisdictions on international exploration concessions, which it describes as higher-risk, larger gas plays.

Corporate and Financial Position

Thomas Streitberg became Executive Chairman from 24 September 2026 for a three-year term, taking all his compensation as share-based and investing $300,000 on the same terms as the April capital raising. Tranche 2 issued 380,834,367 shares at $0.0029 to raise $1,104,420, along with options exercisable at $0.006 by 30 June 2028. In total $1,404,420 in cash was received in the quarter.

Cash was about $1.415 million, net operating cash outflow was $409,000, and the Appendix 5B estimates 2.70 quarters of funding. December quarter objectives include keeping Emu Apple-1 stable, executing the Major Gas Field gas sales agreement and the Riverslea lifting agreement, and advancing international negotiations.

Key Takeaways

AOK is moving from preparation to restart across its Surat Basin assets, but production and sales depend on a gas sales agreement, a lifting agreement and regulatory approvals that are not yet complete. With about $1.4 million in cash, funding and execution remain the key factors. This article is general information only and is not financial advice.