Highlights

  • Australian Oil Company completed its second oil lifting from the Emu Apple Oil Field, producing 422 barrels and continuing efforts to improve production performance.
  • The company is progressing development plans across the Riverslea and Major Gas fields while advancing commercial negotiations for future oil and gas sales.
  • New exploration targets identified within PL 264 could expand the company's resource potential across its Surat Basin portfolio.

Australian Oil Company Limited (ASX:AOK) has provided investors with a comprehensive operational update covering its oil and gas assets in Queensland's Surat Basin. The announcement highlights ongoing production activities, new exploration opportunities, development planning, and commercial negotiations that collectively shape the company's near-term outlook.

On 12 June 2026, AOK shares traded at AUD 0.002, representing a 20% decline during the session. Despite the share price weakness, the latest operational update demonstrates continued progress across several strategic assets, including the Emu Apple Oil Field, Riverslea Field, and Major Gas Field.

For investors, the focus remains on whether the company's development initiatives can translate into increased production, revenue generation, and improved operational scale over the coming years.

Emu Apple Oil Field Continues Production Activities

A key component of the latest update was the continued production activity at the Emu Apple Oil Field within Petroleum Lease 264.

The company completed its second oil lifting under its existing crude oil and condensate agreement with IOR Energy. The latest lifting totaled 422 barrels and occurred following delays associated with maintenance activities at the Eromanga Refinery.

Management indicated that oil prices have softened slightly since the previous lifting. However, favourable currency movements are expected to support realized pricing, with average revenue anticipated to remain comparable to approximately AUD 151 per barrel achieved previously.

The next lifting is expected during early-to-mid July 2026, subject to refinery scheduling and planned well enhancement activities.

For shareholders, continued production from Emu Apple provides an important source of operational revenue while the company pursues broader development opportunities across its portfolio.

Production Enhancement Program Planned

Australian Oil Company is preparing a condensate wash and acid treatment program for the Emu Apple-1 well.

The objective of these operations is to remove paraffin build-up within the wellbore and potentially improve production performance.

Such maintenance programs are commonly used within mature oil fields to enhance flow characteristics and improve operational efficiency.

While the outcome remains subject to technical execution and reservoir response, successful productivity improvements could increase future production rates and support additional oil sales from the field.

Investors will likely monitor the results closely, as production optimization initiatives can have a meaningful impact on smaller-scale producing assets.

New Exploration Potential Identified in PL 264

Beyond existing production activities, Australian Oil Company highlighted new exploration opportunities within Petroleum Lease 264.

The company has been reviewing historical geological and geophysical datasets across its Surat Basin holdings. This review identified airborne audio electromagnetics using passive transient pulse (AEM-PTP) anomalies alongside historical geochemical iodine anomalies extending beyond the currently producing Emu Apple Field.

Management believes these anomalies may indicate additional exploration potential within areas that currently have limited seismic coverage.

The identified targets are being integrated into the company's broader exploration database and future prospect inventory.

For investors, the significance lies in the possibility that existing infrastructure and operational knowledge within the area could support future exploration activities if further technical analysis confirms prospectivity.

Riverslea Development Plans Continue to Advance

The Riverslea Field remains another important asset within Australian Oil Company's development strategy.

Recent crude oil samples from Riverslea-3 have been submitted for analysis by Intertek as part of commercial sales requirements. Results are expected within weeks and are expected to support ongoing negotiations regarding future crude sales arrangements.

The company is also reviewing updated Later Development Plans for Petroleum Lease 30.

The revised development framework is expected to incorporate the restart of Riverslea-3 and potentially Riverslea-1 while also evaluating step-out drilling opportunities across the Riverslea and Yapunyah areas.

Updated commodity pricing assumptions and exploration opportunities are also being incorporated into planning activities.

For shareholders, progress at Riverslea could represent another avenue for future production growth alongside existing operations at Emu Apple.

Major Gas Field Emerging as a Strategic Priority

Perhaps the most significant development highlighted in the announcement is the company's ongoing work at the Major Gas Field within Petroleum Lease 512.

Management described the Major opportunity as a key focus area due to its proximity to gas markets and the favourable supply-demand dynamics currently evident within eastern Australia.

Preliminary geological mapping suggests that the shut-in Major-4 production well may be capable of returning to production under a managed operating strategy.

At the same time, technical teams are evaluating whether additional development wells may be warranted to access remaining reserves within the structure.

Importantly, resource assessment work is occurring alongside commercial negotiations related to gas sales and processing arrangements through the Silver Springs Plant.

The company indicated that commercial agreements are progressing and may be finalized shortly after completion of the resource evaluation process.

For investors, successful commercialization of the Major Gas Field could become one of the most important drivers of future company growth.

Regulatory Progress Supports Future Expansion

Australian Oil Company also confirmed that its subsidiary has received approval from Queensland's Department of Environment, Tourism, Science and Innovation (DETSI) to operate all Surat Basin assets transferred from the Department of Natural Resources and Mines.

This approval provides greater operational flexibility and supports the company's plans to advance development activities across its portfolio.

Management also disclosed ongoing discussions regarding potential acquisitions, oilfield equipment purchases, and participation in recent licensing opportunities.

These initiatives align with the company's broader strategy of expanding its Surat Basin presence while evaluating additional opportunities elsewhere in Australia and internationally.

Outlook

The coming months are expected to be important for Australian Oil Company as multiple operational initiatives move toward key milestones. Investors will be monitoring the outcome of the Emu Apple production enhancement program, Riverslea crude sales negotiations, completion of resource studies at Major Gas Field, and any subsequent commercial agreements.

At the same time, exploration work across PL 264 and other Surat Basin assets may generate additional drilling opportunities that could support longer-term resource growth.

While execution risks remain inherent within small-cap energy development companies, the latest update demonstrates that Australian Oil Company is advancing multiple projects simultaneously across production, development, and exploration activities.

Conclusion

Australian Oil Company's latest Surat Basin update highlights a company actively progressing several operational and commercial initiatives across its asset base. Existing oil production from Emu Apple, redevelopment plans at Riverslea, and advancing gas commercialization efforts at the Major Gas Field collectively provide multiple areas of focus for investors. Although the share price declined on the day of the announcement, market attention is likely to remain centered on upcoming production enhancement results, gas sales negotiations, and exploration outcomes. The next several quarters may prove important in determining how effectively Australian Oil Company converts its development inventory into expanded production and revenue opportunities.