Australian Oil Co (ASX:AOK) moves to near term production and optimisation phase across PL 264 and PL 30

Australian Oil Co has shifted from transaction completion to operational execution across its newly consolidated Queensland permits, with the company confirming that production optimisation and field evaluation activities are underway across PL 264 and PL 30 following the acquisition from ADZ Energy (Queensland) Pty Ltd and OGT Energy Pty Ltd.

With the deal now unconditional, operational control and production handover activities have commenced, including transfer of Emu Apple field operations, placing the focus on near term oil lifting, pump optimisation and restart assessments across multiple wells and facilities.

Highlights

• First oil lifting from the Emu Apple field is expected within the next fortnight, with approximately 200 barrels scheduled and a sales agreement in progress
• Current Emu Apple production is approximately 20 barrels of oil per day at about 30% water cut from Emu Apple 1
• Emu Apple 1 facilities are in good condition and operating at low rate using a hydraulic pumping unit
• Four wells have been drilled at Emu Apple, with Emu Apple 2 and Emu Apple 3 suspended in good condition and available for potential reactivation
• PL 264 retains additional mapped prospects and leads and is supported by sparse 2D seismic coverage
• PL 30 technical assessment includes the Riverslea Oil Field, supported by good quality 3D seismic coverage
• Riverslea 3 has been tested and can flow unassisted at approximately 15 barrels of oil per day
• Easement and licence transfer processes are progressing across PPL 22, PL 264, PL 30 and PL 512

The Emu Apple field forms the immediate production anchor within the update, with existing surface infrastructure inspected and assessed as serviceable for current operating levels, including oil storage tanks and evaporation pond infrastructure associated with field production operations, and with no environmental issues or upgrades required at current operating levels.

The company notes that storage capacity figures are not included because detailed engineering verification is ongoing, indicating that facility level validation continues alongside production optimisation work.

From a reservoir and field history perspective, Emu Apple 1 previously flowed 360 barrels of oil per day from the lower Boxvale sandstone and was brought into production in 2007, providing a historical production reference point alongside the present lower rate output and pump optimisation studies now underway.

Internal technical reviews are focused on improvements to production through pump optimisation and operating adjustments, while additional drilling targets are being matured alongside production optimisation work.

Across PL 30, attention has turned to the Riverslea Oil Field, where the asset is currently shut in and requires capital works to restore evaporation ponds and load out pumping systems for production restart, which are currently being assessed.

Three wells have been drilled and Riverslea 1 and Riverslea 3 are described as being in good condition and available for reinstatement to production once cost estimates have been finalised.

Engineering assessment is underway to determine production performance under pumped conditions, and surface tank farm infrastructure has been inspected and is in good condition.

Additional potential production opportunities are being reviewed in the Yapunyah area within PL 30.

Management frames the broader program as both market timed and portfolio driven, with AOK Managing Director Kane Marshall stating,

“We have seen a significant improvement in oil markets recently and we have direct access to offtake of our liquids from Emu Apple in the short term and Riverslea in the foreseeable future. Timing is everything in this game and we are executing on our strategic initiatives to diversify, generate free positive cash flow, generate high quality exploration targets and strengthen our operating capabilities.”

Looking ahead, the company confirms that resource volumetric analysis is underway across Emu Apple, Riverslea and associated prospects, including Yapunyah, while also confirming that PL 264 expired on 31 December 2025 and production continues while renewal application APL 1170 over the same 10 sub blocks is under assessment.

A detailed oil strategy presentation outlining development pathways and exploration opportunities across the portfolio is expected to be released to the market, setting the framework for how the company intends to sequence optimisation, restart activity and target maturation across the permit base.

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