Australian Oil Company (ASX:AOK) first lifting establishes production baseline as PL 30 work defines next targets

Australian Oil Company Managing Director Kane Marshall speaks with MarketOpen to discuss the first oil lifting scheduled at Emu Apple on 31 March 2026 and what it establishes in terms of current production and commercialisation. The lifting is undertaken under an existing agreement and provides a defined reference point for how production is aggregated and monetised, with approximately 800 barrels to be transported for refining into products including diesel. 

He also outlines how work across PL 30 advances target definition, with geochemical and seismic datasets identifying anomalies of interest that are incorporated into geological modelling as part of the 2026 work program. This positions the Company to progress from early stage identification toward a more structured pipeline of development and drilling opportunities.

What does the first oil lifting on 31 March 2026 change in terms of production levels and revenue visibility?

The first oil lifting scheduled for 31 March 2026 establishes a clear operational and commercial reference point for our production at Emu Apple. It confirms that production is ongoing and linked to an active sales pathway under the existing crude oil and condensate lifting agreement with IOR, which provides a defined mechanism for monetising output. 

From a production perspective, the lifting provides a tangible indication of current output levels through the approximately 800 barrels to be transported, which reflects accumulated production over an extended interval between liftings rather than a change in underlying production rate. 

In terms of revenue visibility, this event demonstrates that production is converted into saleable product, including refined outputs such as diesel, under established arrangements. It does not yet establish a steady state revenue profile, but it confirms the operational link between production and realised sales as we continue to assess development opportunities to support future production.

How should the approximately 800 barrel lifting be interpreted in terms of underlying production consistency versus timing?

The approximately 800 barrel lifting is a function of timing rather than a change in underlying production performance. The volume reflects a longer interval between liftings at Emu Apple, meaning the barrels represent accumulated production over that period rather than an increase in the rate of production itself. 

From a commercial perspective, this distinction is important. The lifting provides a snapshot of what is produced and stored since the last scheduled offtake, but it does not in isolation indicate a step change in output or consistency. Instead, it establishes a baseline reference point for how production is aggregated and periodically monetised under the existing lifting agreement.

Our focus remains on using these liftings to better understand production behaviour over time, while continuing to assess development opportunities that may support more regular lifting intervals and improved visibility on production consistency.

What has been validated by the PL 30 review, and what remains unproven before drilling?

The preliminary review across PL 30 validates that there are multiple anomalies of interest supported by both geochemical and seismic datasets. Iodine anomalies are identified that are coincident with seismic amplitude features, including areas around the Annabelle high and along the western flank of Riverslea, as well as further south at the Boxvale sandstone level. This alignment between independent datasets provides a level of technical consistency that supports the presence of potential hydrocarbon systems and justifies further evaluation. 

However, these findings remain at a screening and interpretation stage. The anomalies are not yet drilled and therefore do not confirm the presence, extent, or commercial viability of hydrocarbons. Some targets are considered higher risk and higher reward, and additional work, including further review of historical geochemical surveys and integration into geological modelling, is required before advancing to drilling. 

At this stage, the work progresses target identification and prioritisation, but confirmation through drilling remains the key outstanding step.

What are the next steps to convert this work into defined development or drilling opportunities?

The next step is to incorporate the geochemical and seismic datasets into our geological modelling as part of the 2026 work program, which moves the work from early stage identification toward more clearly defined and prioritised opportunities. This integration focuses on understanding how the iodine anomalies align with seismic features so that potential targets are assessed on a consistent and comparable basis. 

In parallel, we are compiling a full inventory of both development opportunities to increase near term production and exploration drill targets across PL 264 and PL 30. This allows us to progress production and exploration pathways together, rather than treating them separately. 

From there, each opportunity progresses through a structured process of maturation, risk assessment and resource determination before any drilling decisions are made. The Company indicates it will update the market as these opportunities advance through that sequence.

From baseline production to defined opportunity set

The first lifting at Emu Apple provides a reference point for current production and establishes a working link between output and sales under existing arrangements. In parallel, the PL 30 review advances early stage targeting, with the next phase focused on integrating datasets and progressing opportunities through defined evaluation steps. Together, this positions Australian Oil Co to move from initial validation toward more structured development and exploration outcomes.