Australian Oil Company (ASX:AOK) Transitions to Producer with Queensland Acquisition

Australian Oil Company has finalised the acquisition of the PL 264 and PL 30 assets, effectively transitioning the company from an explorer to an active producer and developer domestically.

Managing Director Kane Marshall outlines the immediate impact of the transaction and the strategy to optimise these legacy fields for cash flow generation.

The acquisition is now unconditional and operational control has been transferred. Why is this announcement a major milestone for the company today?

This transaction effectively graduates the company from a speculative explorer into a cash flow generating producer with follow up potential in the same producing areas.

By taking immediate operational control of the Emu Apple and Riverslea fields we have bypassed the significant time delays and capital intensity usually associated with greenfield discovery development while maintaining access to fast track the development of other discoviers.

We now control our own infrastructure and have immediate access to oil inventory which fundamentally changes our investment proposition.

This acquisition provides the essential working capital wedge required to support our broader growth strategy without being solely dependent on dilutive equity raisings.

How does this specifically de risk the project or validate the strategy?

Acquiring existing production assets with established infrastructure is the most effective way to de risk a junior resources company.

We have validated our strategy by securing these assets at a price that reflects their current passive state rather than their upside potential.

This allows us to focus purely on production optimisation and workover activities which carry a significantly lower technical risk profile than wildcat exploration.

We have effectively secured a tangible asset base that underpins our valuation and lowers the downside risk for investors.

You have referenced historical performance in the text. What specific technical data supports your confidence in restoring significant production levels?

The historical data provides a compelling baseline for our optimisation strategy. Specifically the Emu Apple 1 well historically flowed 360 barrels of oil per day from the lower Boxvale sandstone which confirms the high deliverability of the reservoir.

Although the field is currently flowing at a passive rate of approximately 20 barrels per day due to lack of maintenance we have identified that simple pump optimisation and other improvements can bridge this gap.

This technical divergence presents a low-cost opportunity to restore material production levels rapidly.

What is the next major catalyst or phase investors should watch for?

Investors should focus on the immediate resumption of commercial production which is our primary objective, the identification of follow up drill targets and potential upside to existing development assets .

We expect to complete the first oil lifting from the Emu Apple field within the coming weeks which will mark the start of our revenue profile.

Following this we will release a comprehensive strategic presentation detailing our field development plan and exploration upside.

We are moving quickly to demonstrate that we can convert these acquired assets into sustainable earnings. This secures our pathway to operational cash flow.

Australian Oil Company has commenced the operational handover and expects to report initial revenue shortly. Investors should anticipate the release of the detailed strategic presentation in the coming weeks.

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