Australian Oil Co (ASX:AOK) reports maiden oil lifting as Surat Basin activity expands

Australian Oil Co has reported its first crude oil lifting from the Emu Apple Oil Field in Queensland’s Surat Basin, while progressing development, exploration and new business opportunities across its broader portfolio.

The update outlines production activity at Emu Apple, intervention planning at Riverslea, new exploration work across PL30 and further assessment of gas potential at the Major Gas Field, alongside participation in Queensland’s latest oil and gas licensing round.

Highlights

• Maiden crude oil lifting from Emu Apple on 31 March 2026 totalled 422 barrels
• Oil sold to IOR Energy averaged $151 per barrel, generating receipts of $63,722
• Funds from maiden sales are anticipated to be received within May
• The next oil lifting is scheduled on or before 18 May for approximately 400 barrels
• Emu Apple production is currently averaging approximately 15 barrels per day with a 30% water cut
• Australian Oil plans to acidise Emu Apple-1 followed by a condensate wash to improve production rates
• Riverslea-3 oil samples are being assayed to support crude sales agreement discussions
• 3D seismic interpretation has commenced across PL30
• Preliminary mapping at Major Gas Field has identified potential for an additional well up-dip
• The company submitted bids for 2 exploration blocks in Queensland

The company said the first lifting occurred under its existing crude oil and condensate lifting agreement with IOR Energy Pty Ltd.

Australian Oil also clarified that the lifting total was 422 barrels, rather than the previously disclosed 600 barrels, after one storage tank was incorrectly identified as containing oil when it was being used for condensate storage.

The company said condensate currently stored on site is planned to be used alongside acid treatment in the coming weeks as part of efforts to improve short term production rates.

Storage levels at Emu Apple are currently sitting at around 380 barrels, with the next lifting expected in the coming days in the order of 420 barrels.

The company said production levels remain consistent with expectations of approximately 15 barrels of oil per day and a water cut of approximately 30%, while it continues assessing longer term production improvements through well intervention work as part of previously disclosed strategic initiatives.

At PL30, Australian Oil has taken a wellhead sample from Riverslea-3 to conduct assays aimed at supporting commercial discussions for a crude sales agreement and the reactivation of the Riverslea oil field, with those assays expected to be completed by the end of the month.

The company has also commenced feasibility studies with suitable rig service companies and coil tubing vendors regarding intervention work at Riverslea-3 and continues assessing similar activity at Riverslea-1 and Yapunyah-1 with a view to restarting production from both oil pools.

Exploration work is also progressing, with 3D seismic data now loaded for PL30 and interpretation underway to mature exploration prospects for drilling and integration with iodine and geochemical databases.

Preliminary mapping identified additional exploration potential up-dip of Annabelle-1 in the south of PL30, with prospect inventory, risking and resource estimates expected to be disclosed to the market in due course.

Australian Oil Managing director Kane Marshall said the company was advancing multiple initiatives across production and exploration activity, stating

“The future activity for the Company occurs at a time when both sentiment and commodity prices are the best they have been in years.”

At the Major Gas Field, preliminary mapping suggests Major-4, a shut-in production well, is located near the gas-water contact and has potential for re-instatement back to production on a cyclical basis to manage future water production.

The company said a potentially material amount of gas sits up-dip of Major-4 that may not have been drained by existing Major wells, with mapping and volumetric work expected to be completed in the coming weeks.

That work is being undertaken alongside commercial discussions to sell gas from Major through PPL 22 into the Silver Springs Gas Plant.

Separately, Australian Oil confirmed it submitted bids for 2 exploration blocks in Queensland’s latest licensing round and is evaluating additional opportunities in the Surat Basin alongside further international opportunities as part of its stated strategy to diversify its portfolio of assets.

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