Australian Oil Advances Surat Basin Output with Second Emu Apple Lifting and New Exploration Targets

Second Emu Apple Lifting and Production Enhancement Plans

Australian Oil Company Limited (ASX:AOK) has executed a second crude oil lifting from its Emu Apple Oil Field in the Surat Basin, extracting 422 barrels under its existing lifting agreement with IOR Energy Pty Ltd. The lifting, which occurred on 2 April 2026, was delayed due to unscheduled maintenance at the Eromanga Refinery. Despite a slight dip in oil prices since the previous lifting, the company expects prices to average around $151 AUD per barrel, influenced by currency fluctuations.

Production tanks at Emu Apple are currently low, with the next lifting anticipated in mid-July, contingent on the timely procurement of acid for planned wellbore treatment. Australian Oil intends to conduct acid and condensate washes to remove paraffin build-up, aiming to enhance well productivity and sustain output levels.

Emerging Exploration Opportunities in PL 264

In a strategic review of legacy data, Australian Oil has identified new exploration targets within permit PL 264, extending beyond the main Emu Apple Oil Field. Airborne audio electromagnetics using passive transient pulse (AEM-PTP) surveys revealed anomalous zones in the northern part of PL 264, an area previously lacking seismic data. Complementary geochemical iodine anomalies further underscore untapped prospectivity in this region.

The company plans to integrate these anomalies with 2D seismic data to refine its exploration inventory across the Surat Basin. These methodologies are also being evaluated for other potential acquisitions within the basin and broader Australian jurisdictions, signaling a broadened exploration approach.

Progress at Riverslea and Major Gas Field Development

Development efforts continue at Riverslea Field (PL 30), where crude samples from the Riverslea-3 well have been dispatched to Intertek for assay, with results expected within two weeks. These assays are critical to progressing commercial crude oil sales under existing agreements.

The company is revising its Later Development Plan (LDP) for Riverslea to include reactivation of Riverslea-3 and potentially Riverslea-1 wells. This plan also contemplates step-out drilling within the Riverslea complex and at Yapunyah, reflecting an expanded development footprint.

Meanwhile, at the Major Gas Field (PL 512), mapping and modelling of gas volumes are nearing completion. Preliminary data indicate that the shut-in Major-4 well sits on the edge of the gas pool near the gas-water contact, presenting potential for cyclical reactivation to manage water production. Concurrently, commercial negotiations for gas sales and arrangements to bring Major-4 back online at the Silver Springs Plant are advancing, with formal agreements expected shortly after resource evaluations conclude.

Regulatory Approval and Strategic Positioning in the Surat Basin

Australian Oil has secured approval from the Department of Energy and Public Works (DETSI) to operate all its Surat Basin assets, following their transfer from the Department of Natural Resources, Mines, and Energy. This regulatory milestone enables the company to directly manage its portfolio and engage with other operators regarding potential acquisitions and equipment procurement aimed at boosting production.

The company is actively participating in the latest licensing round and continues to assess higher-risk opportunities alongside its core Surat Basin strategy. This positions Australian Oil to leverage its growing operational footprint amid improving commodity prices and market conditions.