Highlights

• Australis Oil & Gas shares rose 13.33% to AUD 0.017 during the afternoon session on 2 July 2026.

• The company submitted a permit application for the Willson 1H well in Mississippi.

• Willson 1H is the first well under the US$46.25 million carried work program.

• The Mississippi Oil and Gas Board hearing is scheduled for 15 July 2026.

• The proposed well includes a 10,000-foot lateral to assess extended lateral drilling potential.

• Australis and its development partner are also preparing permit applications for wells two and three.

Australis Oil & Gas Ltd (ASX:ATS) shares moved higher during the afternoon session on 2 July 2026 after the company provided an update on preparations for the first well under its US$46.25 million carried work program in the Tuscaloosa Marine Shale. The stock rose 13.33% to AUD 0.017, adding AUD 0.002 during the session. Over the past year, Australis shares remain up 70.00%, reflecting a gain of AUD 0.01.

The latest update appears favourable for the company’s forward work program, as Australis has submitted a well permit application for the Willson 1H, the first carried well under its development partner arrangement. While a final drilling date has not yet been confirmed, the company said preparations are being managed to preserve the option of a Q4 2026 start.

Australis Oil & Gas is an ASX-listed oil and gas company focused on onshore assets in the United States. The company’s core asset is located in the Tuscaloosa Marine Shale, commonly referred to as the TMS, across central Louisiana and southwest Mississippi. Australis holds approximately 47,200 net acres, around 85% of which is held by production, within what it describes as the production-delineated core of the oil-producing TMS.

Willson 1H Permit Marks First Step in Carry Program

The main development in the latest announcement is the submission of a permit application for the Willson 1H well to the Mississippi Oil and Gas Board.

Willson 1H is the first well planned under Australis’ US$46.25 million carried work program. The regulator’s hearing to approve the permit application is scheduled for 15 July 2026.

The well is expected to be drilled from an existing, previously unused pad into a new drilling unit covering approximately 1,900 gross acres.

Australis said the permit application proposes a 10,000-foot lateral length for Willson 1H. This reflects the development partner’s objective of evaluating the potential of extended lateral drilling within the TMS.

Once production begins, acreage within the Willson unit will be added to Australis’ held-by-production acreage position.

Australis Holds 88% Working Interest in Proposed Unit

Australis currently holds an 88% working interest in the proposed Willson unit.

The company said this interest, together with any additional interests obtained before the spud date, will be adjusted in accordance with the transaction agreement with its development partner once the total US$46.25 million carry program is satisfied.

This structure forms part of the development partnering transaction completed in 2025, under which the development partner agreed to fund new wells in the TMS while carrying Australis for a 20% working interest in that program.

The arrangement is designed to advance drilling activity in the TMS while reducing Australis’ direct near-term funding burden.

Operational Planning Continues Ahead of Potential Q4 Start

Australis said planning for the Willson 1H well is progressing in close coordination with its development partner.

Final decisions are nearing completion on well architecture, data acquisition requirements and fracture stimulation design. Once these items are finalised, the company expects to begin contracting for services.

The development partner has not yet confirmed a target spud date. However, Australis said current preparation work is being managed to preserve the option of a Q4 2026 start.

The company also noted that preparation is underway for the second and third wells in the carried work program, with permit applications expected to be submitted over the coming months.

Leasing Program Supports Future Drilling Units

Australis and its development partner are also progressing a leasing program across the TMS Area of Mutual Interest.

The company said the previously disclosed US$1 million development partner land carry is being deployed across the TMS AMI, with a focus on planned and future drilling units.

Australis said it will provide land updates through quarterly reports and as progress is made.

This leasing work is intended to support the broader development program by securing acreage around future drilling opportunities.

2025 Transactions Set Up Forward Program

Australis said its current forward program follows two transactions completed in 2025.

The first was the TMS development partnering transaction, executed on 25 November 2025. This introduced an established and aligned US-listed independent oil and gas company as Australis’ development partner in the TMS.

The transaction included an upfront payment of US$1 million to Australis and the application of up to US$46.25 million in development capital for new TMS wells. The development partner is funding Australis for a 20% working interest in the carry program in order to earn an 80% working interest in undeveloped held-by-production acreage and term leasehold of approximately 46,100 net acres held by Australis at the time.

The second transaction was the EQV financing transaction, which closed on 30 December 2025. Under that transaction, EQV assumed field production operatorship from Australis and acquired 90% of Australis’ working interest in all Australis-operated wells.

Australis said the carry program, initial leasing program and strengthened balance sheet have funded the company for the forward program.

TMS Asset Base Remains Central to Strategy

Australis’ TMS acreage remains the foundation of its growth strategy.

The Tuscaloosa Marine Shale is described by the company as a Cretaceous shallow marine unconventional shale present across central Louisiana and southwest Mississippi. It is the same geological age as the Eagle Ford Shale in South Texas and the Woodbine Shale in East Texas.

The play is relatively deep, high pressured and oil weighted. Australis noted that early TMS activity between 2010 and 2014 showed variable production performance and higher well costs, partly due to operational challenges associated with drilling and completing wells.

However, that early activity also helped delineate a core area where production results were consistent and comparable to more developed unconventional plays such as the Eagle Ford and the Permian.

Australis describes this area as the TMS Core.

Resource Base Provides Development Upside

At year-end 2025, Ryder Scott independently assessed Australis’ acreage position.

The company reported 62 million barrels of 2P plus 2C recoverable volume, including 165 thousand barrels of 2P producing reserves providing net field cash flow.

Australis also stated that its acreage includes approximately 160 net future drilling locations.

The company noted that the contingent oil resource is contingent on a qualifying development program. Australis intends to reassess its undeveloped reserve position when a program is agreed with its development partner.

This makes the carried work program important because it may provide the operational activity required to support future development assessment.

New Website Launched for Shareholder Updates

Alongside the operational update, Australis announced that it has launched a new company website.

The company said the website is intended to improve shareholder engagement and support timely dissemination of operational results as the carried wells and land leasing programs progress.

Australis encouraged shareholders and investors to register for email alerts to receive future updates.

While this is not the central element of the announcement, it reflects the company’s focus on keeping investors informed as drilling preparations advance.

What This Means for Investors?

Australis Oil & Gas’ latest update appears to have supported the share price gain because it shows the first well under the US$46.25 million TMS carried work program moving into the permitting stage. The Willson 1H permit application has been submitted, the regulatory hearing is scheduled for 15 July 2026, and operational planning is progressing with the development partner. The proposed 10,000-foot lateral also points to the partner’s intention to assess extended lateral drilling potential. Investors will likely monitor permit approval, the spud timing, progress on wells two and three, and leasing activity across the TMS Area of Mutual Interest.