Australis Oil & Gas Limited (ASX:ATS) released its consolidated financial results for the half year ended 30 June 2026 on 19 August 2026, reporting a net loss after tax of US$2.6 million and a period-end cash position of US$11.2 million, with the Willson 1H well permit granted and a spud date being targeted in Q4 2026.

Business Model and Operational Footprint

Australis Oil & Gas Limited is an ASX-listed oil and gas company focused on the strategic development of onshore oil and gas Assets in the Tuscaloosa Marine Shale in the United States. The Company holds approximately 47,300 net acres (84% held by production) within the production-delineated core of the proven TMS, with approximately 160 net future drilling locations. At year-end 2025, Ryder Scott independently assessed the Company's acreage, reporting 62 MMbbls of 2P plus 2C recoverable volume, including 165 Mbbls of 2P producing reserves. The Company's strategy is centred on a Carry Programme with a Development Partner, a US-listed independent oil and gas company, under which Australis holds a 20% working interest carried by the Development Partner.

Commodity Dynamics

The TMS is an unconventional liquids-rich shale play in Louisiana, USA. The Company's oil production is priced with reference to West Texas Intermediate Crude Oil Benchmark pricing. During the half year ended 30 June 2026, the Company reported an average realised oil price of US$85 per barrel (excluding hedges and prior period adjustment). WTI oil price levels are a key determinant of the economic returns achievable from TMS development.

Half Year 2026 Financial Results and Development Update

Australis reported Revenue from ordinary activities of approximately US$0.5 million for the half year ended 30 June 2026, a decrease of 93% from US$7.72 million in the half year ended 30 June 2025, reflecting the transition from producing activities to development preparation under the Carry Programme. Sales volumes on a working interest basis were 9,200 barrels. Adjusted EBITDA was negative US$2.6 million. The net loss after taxation was US$2.6 million, compared to a net loss of US$1.89 million in the prior corresponding period. The period-end cash position was US$11.2 million. Net tangible assets per security were US$0.01 at 30 June 2026. No dividends were proposed.

The permit for the Initial Test Well, the Willson 1H, has been granted. Work has commenced on securing a spud date during Q4 2026, to be determined by rig availability. Australis is the designated operator of the Willson 1H and has retained the operational staffing levels required to meet this obligation. Leasing has commenced as part of the Initial Leasing Programme, and the permit application process has been initiated for the second Carried Well, the Mathieu 1H.

Growth Catalysts and Critical Operating Risks

The primary near-term catalyst is the spud of the Willson 1H Initial Test Well, targeted for Q4 2026 subject to rig availability, which would mark the commencement of physical drilling activities under the Carry Programme. Progress on the Mathieu 1H permit represents a parallel near-term milestone.

Key risks include the dependence on rig availability to determine the spud date for Willson 1H. The Company's cash position of US$11.2 million needs to be sufficient to fund its obligations until the development programme generates cash flow. Oil price movements affect the economic returns achievable from TMS development. Operational risks include well performance, completion design outcomes, and water disposal requirements.