Australian Oil Co (ASX:AOK): Surat Basin action heats up
Australian Oil Co is currently focused on conventional oil and gas exploration and production opportunities in the Surat Basin in Australia.
The company also has a portfolio of natural gas and oil producing wells in California.
Highlights
Emu Apple-1 is delivering a sustained flow of 15 to 20 barrels of dry oil per day following an acid wash intervention, with no water cut compared with the previous 30% water cut.
Emu Apple-2 and Emu Apple-3 have undergone on-site surveys with a view to conducting similar well interventions.
Riverslea Production Facilities are scheduled for upgrades in preparation for the imminent field restart.
Exploration access was assessed at Greater Riverslea, while prospect and lead mapping continues in PL 30 as part of the strategic road map.
The Major-4 wellhead and associated infrastructure have been assessed and readied for development.
At the Emu Apple Oil Field within PL 264, field personnel and management have confirmed through measured fluid levels that Emu Apple-1 maintains fluid height over 100 metres above the pump intake.
The company states that this presents significant scope for future increases in pump rates and production volumes as the well continues to clean up, while tank levels indicate the next lifting by IOR will occur in 2 weeks.
Planning is underway for the installation of hydraulic pumping units at Emu Apple-2 and Emu Apple-3, aimed at enhancing production across these wells and maximising recovery from the permit area.
Building on operational success and well learnings at Emu Apple-1, the company will apply this knowledge to further prospecting and development throughout the PL 264 licence, targeting incremental production gains and ongoing reservoir characterisation.
Australian Oil Co Managing Director Kane Marshall said:
“Our teams have made significant operational strides this period. The sustained improvement in Emu Apple-1 production post-intervention and the commencement of wide-ranging upgrades across our facilities underscore our commitment to efficient field management and value creation.”
Within PL 30, planned work at the Riverslea Production Facilities includes remediation of both evaporation ponds, road and gate upgrades, and installation of a new water separation tank.
Key lessons from the Emu Apple interventions are informing the company’s strategy at Riverslea, with plans underway to bring Riverslea-1 back into production using a hydraulic pumping unit and to target Riverslea-3 for free flow output.
Available load out pumps and flowlines from Emu Apple will be strategically redeployed to facilitate field reactivation.
Across adjoining areas within Greater Riverslea, fieldwork is focusing on improving access and enabling the completion of prospect and leads mapping within PL 30.
The company states that these initiatives are essential for maturing future exploration opportunities and underpinning growth in its Surat Basin portfolio.
At the Major Gas Field within PL 512, the Boxley pipeline connection point has been assessed, with identified custody points for raw gas meter installation and finalising of emergency shutdown valve communication points, laying a clear pathway for gas delivery to the Silver Springs Gas Plant.
The Major-4 wellhead and supporting equipment, including defoaming systems, valves, fencing and signage, have also been reviewed and are in sound operational condition, supporting the company’s plans to bring Major gas online in the near term.
The company’s Surat Basin strategy is progressing with targeted due diligence on a range of new opportunities, reinforcing a broader basin-wide consolidation agenda to optimise returns and growth potential across the portfolio.
Australian Oil is currently evaluating the acquisition of additional global producing and exploration assets aligned with its strategic objectives and commitment to delivering shareholder value.