Australian Oil Company (ASX:AOK) advances Surat Basin development

Australian Oil Company has progressed multiple operational and exploration activities across its Surat Basin portfolio, reflecting a structured approach to production optimisation and resource evaluation.

Key milestones include a second lifting from the Emu Apple Oil Field, preparatory wellbore enhancement operations, and early-stage assessment of additional exploration targets, alongside commercial negotiations for both crude oil and gas sales.

Highlights

• Second lifting of 422 barrels from Emu Apple Oil Field (PL 264) completed; next lifting expected mid-July.
• Operational condensate and acid washes of Emu Apple-1 planned to improve well productivity.
• Historical AEM-PTP and geochemical iodine anomalies identified over and beyond Emu Apple Field in PL 264, highlighting additional exploration potential.
• Riverslea crude samples sent to Intertek; commercial oil sale negotiations ongoing. Later Development Plan to include restart of Riverslea-3 and potentially Riverslea-1.
• DETSI approval received for AOK subsidiary to operate all Surat Basin assets transferred from DNRMMRR.
• Gas volume mapping at Major Gas Field (PL 512) nearly complete, with commercial sales negotiations progressing.

At the Emu Apple Oil Field, the company executed its second oil lifting of 422 barrels under the existing agreement with IOR Energy Pty Ltd.

Production levels in storage tanks are currently low, with the next scheduled lifting likely in mid-July, dependent on sourcing acid and completing condensate and acid washes to remove paraffin accumulation and improve well productivity.

Legacy geophysical data, including airborne AEM-PTP surveys, and geochemical iodine anomalies beyond the main field have been identified as targets for future exploration and will be integrated with 2D seismic data to support the development of a comprehensive Surat Basin exploration inventory.

In the Riverslea and Yapunyah complex (PL 30), crude oil samples from Riverslea-3 are undergoing assay processes in line with contractual requirements, while the Later Development Plan contemplates reactivation of Riverslea-3 and potentially Riverslea-1, with step-out drilling across the Riverslea complex and Yapunyah also incorporated into the development strategy.

For the Major Gas Field (PL 512), preliminary mapping indicates that Major-4, a shut-in well, is positioned near the gas-water contact and may be reinstated on a cyclical basis to manage future water production.

Commercial discussions for gas sales are advancing in parallel with resource mapping to establish the terms for reintroducing production into the Silver Springs Plant.

Australian Oil Managing Director Kane Marshall said:

“The immediate focus is understanding the Major opportunity, with direct line of sight to gas markets and no weakness in gas prices in Eastern Australia, and boosting production from existing wells. Juniors with high-value, low-cost exploration and development inventories are well positioned. The next few months will be pivotal as we execute these strategic objectives and capitalise on the work completed over the past year. Timing is everything in capital markets.”

The broader Surat Basin strategy is supported by DETSI approval for the company to operate all assets, while discussions are ongoing regarding potential acquisitions, oilfield equipment upgrades, and participation in recent licensing rounds.

These initiatives indicate a measured progression from near-term production enhancement to systematic evaluation of exploration opportunities, underpinned by prevailing market conditions and operational readiness.