Australian Oil Company Limited has completed its first crude oil lifting from the Emu Apple Oil Field, marking a key step in its Surat Basin development with steady production and active exploration underway.
- First oil lifting yielded 422 barrels at $151 AUD per barrel
- Next lifting planned for around 400 barrels in mid-May
- Production steady at 15 barrels per day with 30% water cut
- Assays from Riverslea-3 to support crude sales agreement
- 3D seismic interpretation identifies new exploration prospects
Maiden Oil Lifting Confirms Production Potential
Australian Oil Company Limited (ASX:AOK) has marked a significant milestone with its maiden crude oil lifting from the Emu Apple Oil Field in the Surat Basin. The 422 barrels lifted on 31 March 2026 came in below the previously expected 600 barrels due to a storage tank misclassification, but the average realised price of $151 AUD per barrel reflects favourable market conditions sustained by geopolitical tensions. Funds from this initial sale are anticipated within May, providing immediate cash flow support.
Production rates at Emu Apple remain steady at approximately 15 barrels per day, with a water cut near 30%. The company is targeting near-term production enhancements through well intervention techniques, including acidizing and condensate washes to boost output. The next scheduled lifting is set for on or before 18 May, expected to be around 400 barrels, underlining a consistent production rhythm. This operational progress builds on the earlier 12-month lifting agreement with IOR Energy, which secures a stable sales channel for Emu Apple crude.
Riverslea Field Assays and Development Plans
Beyond Emu Apple, Australian Oil is advancing its development pipeline with Riverslea-3 crude oil assays underway. These assays are critical to underpinning commercial discussions for a crude sales agreement and the potential reactivation of production from the Riverslea oil field. Feasibility studies involving rig and coil tubing services are progressing, with interventions planned not only for Riverslea-3 but also for Riverslea-1 and Yapunyah-1, reflecting a strategic push to restart production across multiple pools amid supportive oil price conditions.
The company has commenced interpretation of a recently acquired 3D seismic volume over PL 30, which includes the Riverslea lease. Preliminary mapping has identified additional exploration potential up-dip of the Annabelle-1 well, which could open new drilling prospects. This seismic work is being integrated with iodine and geochemical data to refine prospect inventories and resource estimates, expected to be disclosed in due course. These efforts resonate with Australian Oil’s broader strategy to capitalise on its Surat Basin footprint, as previously outlined in its $2 million capital raise to accelerate Surat Basin ambitions.
Gas Field Mapping and Queensland Licensing Activity
In the gas sector, preliminary mapping of the Major Gas Field (PL 512) suggests that the shut-in well Major-4 sits near the gas-water contact and may be reactivated cyclically to manage water production. More intriguingly, volumetric analysis indicates a potentially material volume of undrained gas up-dip of Major-4, which could represent a valuable resource if successfully delineated and produced. Commercial negotiations are underway to sell gas from this field through PPL 22 into the Silver Spring Gas Plant, signalling a potential new revenue stream.
Australian Oil has also actively engaged in Queensland’s latest oil and gas licensing round, submitting bids for two exploration blocks while evaluating additional opportunities within the Surat Basin and internationally. This aligns with the company’s stated aim to diversify its portfolio and strengthen its asset base amid a favourable commodity price environment, reinforcing its focus on energy security and growth in Australia.
Bottom Line?
Upcoming assay results and seismic interpretations will be pivotal in shaping Australian Oil’s next production and exploration moves in the Surat Basin.
Questions in the middle?
- Will well interventions at Emu Apple and Riverslea significantly boost production rates beyond current levels?
- How will the pending crude sales agreement for Riverslea crude impact cash flow visibility?
- Can the undrained gas volumes up-dip of Major-4 translate into a commercially viable gas production extension?