Australis Oil & Gas Limited (ASX:ATS) is an ASX-listed oil and gas company focused on onshore Assets in the United States. It holds approximately 47,300 net acres, 84% held by production, in the production-delineated core of the oil-producing Tuscaloosa Marine Shale (TMS), with about 160 net future drilling locations. The company was formed by the founder and key executives of Aurora Oil & Gas Limited.

First half 2026 financial results

In its half-year report for the period ended 30 June 2026, released on 19 August 2026, Australis reported sales volumes of 9,200 barrels, sales Revenue of US$0.5 million and an average realised price of US$85 per barrel (excluding hedges and prior period adjustment). The field netback was negative US$0.1 million, adjusted EBITDA was negative US$2.6 million and the net loss after tax was US$2.6 million. Period-end cash was US$11.2 million.

Revenue included a hedge loss and a non-recurring prior period adjustment for 2014 to 2025 resulting from ownership changes identified as two wells reached payout.

Carry Program progress

Australis closed two related transactions in late 2025 (announced on 26 November and 31 December 2025) that established a drilling carry arrangement with a development partner. During the half, work with the partner covered permitting for the first wells in the Carry Program and detailed planning and completion designs.

The permit for the Initial Test Well, the Willson 1H, has been granted, and Australis is working to secure a spud date during the fourth quarter of 2026, determined by rig availability. Australis will be the designated operator. Leasing has begun under the Initial Leasing Program, and a permit application has started for the second carried well, the Mathieu 1H.

Reserves and resources

At year end 2025, Ryder Scott independently assessed the acreage held at that time at 62 million barrels of 2P plus 2C recoverable volume, including 165 thousand barrels of 2P producing reserves. The contingent resource is contingent on a qualifying development program, and Australis will reassess its undeveloped reserves when a program is under way.

Sector backdrop

The Tuscaloosa Marine Shale is an unconventional oil play in Louisiana and Mississippi that has seen limited development, and drilling depends on well costs, rig availability and oil prices. Carry arrangements allow a partner to fund part of a drilling program in return for an interest.

Small producers with few wells have volatile revenue and rely on development programs for growth.

Risks shareholders should weigh

The first half produced a net loss of US$2.6 million and negative field netback, and production sales were modest at 9,200 barrels. Cash of US$11.2 million will need to support operations until drilling generates revenue.

The spud date for Willson 1H depends on rig availability, so the timing can change. Results of the first wells will determine whether the contingent resources convert to reserves.

Hedging losses, prior period adjustments and oil price changes affect reported revenue. The reserve figures are from year-end 2025 and may change after reassessment.

What’s next

Australis is working toward a spud date for Willson 1H in the fourth quarter of 2026, continuing leasing and permit work for Mathieu 1H. Shareholders may wish to watch for spud confirmation, initial well results and the next half-year report.