Australian Oil Company (ASX:AOK) secures Surat Basin foothold as acquisition conditions are satisfied

Australian Oil Company has confirmed that its previously announced acquisition of petroleum interests in Queensland’s Surat Basin has moved beyond conditional status, with all conditions precedent either satisfied or waived and completion now achieved, marking a formal expansion of the company’s onshore Australian asset base.

Highlights

•  Acquisition of 3 petroleum leases and 1 petroleum pipeline licence in the Surat Basin has become unconditional
• Transaction completion has occurred
• Transfer and regulatory documentation is in preparation and lodgement
• Assignments of easements and land compensation agreements are being processed

The transaction, first announced on 10 December 2025, involves the purchase of the petroleum leases and pipeline licence from ADZ Energy Queensland Pty Ltd and OGT Energy Pty Ltd, with the relevant regulatory and contractual conditions now cleared, allowing the transfer process to proceed in full.

The company has advised that documentation is being prepared and lodged in respect of the petroleum titles, the pipeline licence, and the associated easements and land compensation arrangements, which form part of the tenure and access framework for the acquired assets.

From a corporate perspective, the completion of the acquisition establishes Australian Oil Company with what it describes as a material onshore position in the Surat Basin, a region that hosts established petroleum infrastructure and producing fields.

While the announcement does not disclose reserve or production metrics for the acquired licences, the formalisation of the transaction places the company in a position to advance regulatory transfers and begin integrating the assets into its broader operational and strategic planning processes.

The immediate operational focus is now on the remaining statutory and administrative steps required to effect title transfer, alongside the technical evaluation of the acquired licences.

This evaluation phase is expected to inform the sequencing of future work programs and the prioritisation of development activities across the enlarged portfolio.

In outlining the company’s near term priorities, Managing Director Kane Marshall stated that

“completion of the transaction provides the Company with a material onshore asset position in the Surat Basin. The immediate focus is on completing the remaining regulatory transfers and progressing technical evaluation of the acquired licenses. The Board will update the market as work programs and development priorities are defined and integrated with the Company’s existing portfolio.”

The Surat Basin transaction also sits within a broader corporate context in which Australian Oil Company is actively assessing opportunities to expand and rebalance its asset base.

The company currently holds producing oil and gas interests and exploration and appraisal assets in the Sacramento Basin in California, and has indicated that it is evaluating additional acquisitions to enhance its strategic positioning.

The addition of Australian onshore petroleum tenure introduces a second operating jurisdiction and a new set of regulatory and technical considerations, which will be incorporated into the company’s portfolio management framework.

From an industry standpoint, the completion of the acquisition reflects ongoing corporate activity in established Australian basins, where existing infrastructure and regulatory regimes provide a platform for consolidation and development.

The processing of easements, land compensation agreements, and pipeline licensing underscores the importance of access and tenure certainty in advancing onshore petroleum projects through appraisal and development phases.

As regulatory transfers are finalised and technical work programs are defined, Australian Oil Company has indicated that further market updates will be provided, positioning the Surat Basin assets within its wider portfolio and development priorities.

In a sector where capital allocation and asset integration are central to value progression, the transition of this acquisition from conditional to completed status represents a procedural but necessary step in advancing the company’s Australian onshore strategy.

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