Highlights:

  • Australis Oil & Gas (ASX:ATS) was trading at AUD 0.030, up 7.14% during the afternoon Trading session on 21 August 2026.
  • The company holds approximately 47,500 net acres within the TMS Core, including 39,900 acres held by production.
  • The first carried well, Willson 1H, is planned for Q4 2026 with a permitted 10,000-foot lateral.
  • A development partner is funding a US$46.25 million work program, with Australis retaining a 20% working interest.
  • Australis reported cash of US$11.2 million, no Debt and continued exposure to 48 producing wells.

Australis Oil & Gas Limited (ASX:ATS) has outlined progress across its Tuscaloosa Marine Shale (TMS) development strategy, with the company preparing for the next phase of activity alongside its US development partner.

The company’s latest corporate presentation highlighted the planned drilling of the first carried well, continued expansion opportunities across its TMS acreage position and its financial position ahead of renewed development activity.

Australis Oil & Gas was trading at AUD 0.030, up 7.14% during the afternoon trading session on 21 August 2026. The company’s shares remain up 200.00% over the past year.

TMS Development Program Moves Towards First Well

Australis is advancing plans to recommence TMS development activity, with the first carried well, Willson 1H, approved and targeted for drilling in Q4 2026, subject to rig availability.

The well has been permitted for a 10,000-foot lateral and will include a pilot hole designed to collect data for long-term planning and modelling.

Australis is working with preferred rig providers and preparing for the drilling program, which represents the first wells to be drilled as part of the renewed development phase.

The company has also received approval for the permit application for a second carried well, Mathieu 1H, on 19 August 2026, while the permitting process for a third well, Baker 1H, has commenced.

Development Partnership Supports TMS Expansion

Australis has entered into a development partnership arrangement with a US-listed independent oil and gas company to advance the TMS project.

Under the agreement, Australis will retain a 20% working interest in a US$46.25 million development work program.

If the program is completed, the development partner will earn an 80% interest in approximately 46,100 net acres.

Australis is carried for the initial development program, with the partnership structured to support future drilling activities across the company’s TMS acreage position.

The development partner is also participating in a leasing program, while Australis retains rights to participate at a 20% interest in additional leases secured within the defined Area of Mutual Interest.

Large TMS Acreage Position Supports Future Development

Australis holds approximately 47,500 net acres within the delineated TMS Core as at the end of July 2026.

Of this position, approximately 39,900 net acres are held by production, with the company estimating 160 net future locations and a net recoverable estimate of 62 million barrels of oil equivalent.

The company has positioned the TMS as a significant undeveloped shale opportunity in the US.

The TMS is a Cretaceous shallow marine formation located across central Louisiana and Mississippi, covering approximately 20.4 million acres.

Australis highlighted that earlier activity between 2011 and 2014 helped define the TMS Core area through drilling programs that identified improved well performance and consistent results.

Financing Position Supports Development Strategy

Australis said its recent transactions have strengthened its financial position ahead of the next stage of TMS development.

The company completed a financing transaction involving the sale of 90% of its wellbore-only interests in existing producing well inventory for US$16.9 million.

The transaction allowed Australis to repay its Macquarie Credit facilities in full at the end of 2025 and provide funds for TMS development activities.

As at 30 June 2026, Australis held cash of US$11.2 million, had no debt and retained a modest non-operated production interest in 48 producing wells.

TMS Development Potential Remains Central Focus

Australis said the TMS has remained an attractive development opportunity due to its high-quality inventory and existing delineated core area.

The company highlighted that activity in the Basin slowed after the oil price decline in 2015 and remained limited during subsequent industry conditions.

Australis stated that renewed interest in alternative development opportunities has created a pathway to restart activity in the TMS.

The company believes the development partnership and carried drilling program provide a framework to advance the project while maintaining exposure to future opportunities.

Next Steps for Australis

Australis will continue progressing the Willson 1H well program, including drilling preparation, rig coordination and data Acquisition planning.

The company will also continue permitting activities for additional wells and participate in leasing opportunities within the TMS Core.

Australis is also evaluating additional Business development opportunities outside the current Area of Mutual Interest but within the broader TMS Core.

Investor Takeaway

Australis Oil & Gas is progressing towards renewed TMS development activity, supported by its partnership structure, large acreage position and planned carried drilling program.

The company’s next major milestone is the planned Q4 2026 drilling of the Willson 1H well, which is expected to provide further data on the development potential of its TMS position.

Investors may continue to monitor drilling progress, partner-funded activities, additional permitting milestones and future development outcomes across the TMS project.