Australis Oil & Gas (ASX:ATS): Willson 1H Preparations Shape the 2026 TMS Program

Aditi Sarkar

10 November 2026 07:44 PM AEDT

Australis Oil & Gas (ASX:ATS): Willson 1H Preparations Shape the 2026 TMS Program

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Highlights

Australis (ASX:ATS) reported 48,725 net TMS acres at 30 September 2026, with 84% held by production.
The development partner approved planning and execution of the Willson 1H initial test well.
Q3 2026 working-interest sales totalled 6,060 barrels, with approximately USD 0.5 million in sales revenue.
Rig availability remained a condition for the targeted Q4 2026 drilling start.

Australis Oil & Gas Limited (ASX:ATS) explores, develops and produces oil and gas through its onshore interests in the United States, principally the Tuscaloosa Marine Shale (TMS) across Louisiana and Mississippi. Australis Oil & Gas Limited (ASX:ATS) shares closed at AUD 0.031 on 10 November 2026. Its 2026 operational priorities have centred on preparing a partner-funded appraisal well, maintaining its retained production interests and managing its TMS Lease position.

Willson 1H Planning and Development Partner Arrangements

In its quarterly activities report released on 29 October 2026, Australis (ASX:ATS) said its development partner had approved the planning and execution of Willson 1H, the first well under a carried development program. The partner is required to carry Australis’ interest in the first USD 46.25 million work program to earn interests in specified undeveloped acreage.

During Q3 2026, work included refining the well scope, tendering major contracts and securing long-lead equipment such as casing, separators and storage tanks. The company continued seeking a suitable drilling rig, with availability affected by existing operators retaining contract-extension options. Although a Q4 2026 spud was targeted, the September-quarter report did not establish that drilling had begun. Australis (ASX:ATS) also reported progress on the associated land-leasing program.

Acreage, Resources and Existing Production

At 30 September 2026, Australis (ASX:ATS) held 48,725 net acres in the TMS, including approximately 84% classified as held by production. Its reported net 2P plus 2C reserves and resources were approximately 62 million barrels, including 165,000 barrels of producing reserves. Contingent resources are not producing reserves.

The company retained minority working interests of 10% or less in 48 producing TMS wells. Its Q3 2026 report said most of these wells had transferred to another operator during Q1 2026. No workovers were carried out during the September quarter, and production was described as broadly consistent with expectations.

September-Quarter Sales and Funding Considerations

Australis (ASX:ATS) recorded working-interest sales of 6,060 barrels in Q3 2026. Reported sales Revenue was approximately USD 0.5 million, with field netback of approximately USD 0.2 million. The Quarterly Report listed an average realised price of USD 87.29 per barrel and an average achieved price of USD 86.56 per barrel, reflecting the company’s separately defined pricing measures.

The Appendix 5B for the quarter ended 30 September 2026 recorded USD 467,000 of customer receipts and USD 369,000 of production payments.

Execution Risks and Near-Term Milestones

For Australis (ASX:ATS), the immediate milestone is securing an appropriate rig and confirming the start of Willson 1H drilling. Subsequent results would determine what the well establishes about the targeted reservoir and potential future development. Delays in rig availability, drilling performance, completion results and future Capital commitments remain relevant uncertainties.

Key Insights

Australis entered the final quarter of 2026 with a permitted initial test well, an approved planning program and a defined partner carry arrangement. However, the latest quarterly disclosure still characterised the drilling start as a target subject to rig availability. Existing TMS production supplied modest quarterly revenue while the proposed appraisal remained the central development milestone.

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