What the Willson 1H Permit Grant and H1 2026 Financial Results Mean for Australis Oil & Gas

Sonal Goyal

29 September 2026 10:50 PM AEST

What the Willson 1H Permit Grant and H1 2026 Financial Results Mean for Australis Oil & Gas

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Australis Oil & Gas Ltd (ASX:ATS) released its H1 2026 financial results on 19 August 2026, reporting a period-end cash position of US$11.2 million and a net loss after taxation of US$2.6 million for the six months ended 30 June 2026. The headline operational development within the report is the granting of the permit for the Willson 1H — the Initial Test Well under the Carry Program — with work underway to secure a Q4 2026 spud date subject to rig availability. The H1 period was primarily a preparatory phase as the company worked with its Development Partner on permitting, well planning, and leasing activities.

H1 2026 Financial Results

Sales volumes for the half year ended 30 June 2026 were 9,200 barrels (working interest). Sales Revenue was US$0.5 million, including a hedge loss and a non-recurring prior period adjustment related to two wells reaching payout. The average realised price was US$85 per barrel. Field Netback was negative US$0.1 million. Adjusted EBITDA was negative US$2.6 million. Net loss after taxation was US$2.6 million. Period-end cash was US$11.2 million.

Willson 1H Permit Granted

The permit for the Willson 1H, the Initial Test Well under the Carry Program, was granted. Australis will be the designated operator of the Willson 1H and has retained the operational staffing levels required to meet this obligation. Work has commenced on securing a spud date during Q4 2026, subject to rig availability. During the half, the Australis team worked with the Development Partner across multiple disciplines on preparatory work including detailed planning and completion designs for the first Carry Program wells.

Second Carried Well and Leasing

Leasing under the Initial Leasing Program has commenced, with leasing within permitted units progressing. The permit application process has been initiated for the second Carried Well, the Mathieu 1H. The Carry Program structure has the Development Partner funding initial well drilling while Australis retains the operating role.

About the Company

Australis Oil & Gas Limited is an ASX-listed oil and gas company with Assets in the United States, operating under a Carry Program arrangement with a Development Partner that funds initial drilling while Australis maintains the operator role. The two strategic transactions closed at the end of 2025 established this Carry Program framework, which reduces the company's Capital requirements for initial Well Testing while maintaining operational control.

Risks

The Q4 2026 spud date for Willson 1H is subject to rig availability in the US drilling market — not fully within Australis's control.

The US$11.2 million cash position will be drawn down through corporate costs ahead of the Carry Program wells commencing, requiring capital management discipline.

The Carry Program wells are exploratory in nature — commercial production is not guaranteed.

Field Netback was negative US$0.1 million in H1 2026, meaning existing production does not currently cover field operating costs at present volumes.

Leasing completion and permitting of the second well (Mathieu 1H) introduce additional regulatory and scheduling risk.

What to Watch Ahead

Confirmation of the Willson 1H spud date in Q4 2026 once rig availability is secured.

Permit approval for the Mathieu 1H, the second Carried Well.

Willson 1H drilling, completion, and initial production results — the first direct test of the acreage under the Carry Program.

Cash position updates through the remainder of 2026 as the company approaches its well programme.

The Q3 2026 quarterly report, which will provide the most recent update on leasing, permitting, and pre-spud operational progress.

FAQs

Q: What is the Carry Program and how does it work?

A: Under the Carry Program, Australis's Development Partner funds the drilling costs of the initial wells (including Willson 1H and Mathieu 1H) while Australis acts as the designated operator and retains working interest in the wells. This structure means Australis participates in the upside of successful wells without having to fund the initial drilling capital — the Development Partner 'carries' those costs in exchange for a working interest position in the acreage.

Q: Why is Field Netback negative and what does that mean?

A: A negative Field Netback means that the revenue from existing production is not covering the direct field operating costs (lifting costs) at current production volumes. With sales revenue of only US$0.5 million and volumes of 9,200 barrels in H1, the existing production base is very small. The Carry Program wells, if successful, are intended to establish a materially larger production base that would generate positive field economics.

Q: What is the significance of Australis being the designated operator of Willson 1H?

A: As designated operator, Australis manages day-to-day drilling operations, maintains regulatory relationships with authorities, and makes technical decisions during the drilling program. Despite the Development Partner funding the well, Australis's operational role preserves its technical capability and regulatory standing, which are important for the company's longer-term strategy of building an operated US position.

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