Australis Oil and Gas has submitted a permit application for the first well under its US$46.25 million carried work program in the Tuscaloosa Marine Shale, targeting a Q4 2026 spud and expanding its held-by-production acreage.
- Willson 1H well permit submitted for July 15 hearing
- 10,000-foot lateral planned to test extended drilling potential
- Preparations underway for wells #2 and #3 permits
- Leasing program active within TMS Area of Mutual Interest
- New website launched to boost shareholder engagement
Willson 1H Permit Application Marks Key Milestone
Australis Oil and Gas (ASX:ATS) has taken a significant step forward in its Tuscaloosa Marine Shale (TMS) development by submitting a well permit application for the Willson 1H, the first well under a US$46.25 million carried work program. The Mississippi Oil and Gas Board is scheduled to review the permit on 15 July 2026, with the well designed to feature a 10,000-foot lateral length, an ambitious move reflecting the development partner's interest in extended lateral drilling techniques.
The Willson 1H will be drilled from an existing, previously unused pad into a newly defined drilling unit spanning approximately 1,900 gross acres. Upon production commencement, this acreage will be added to Australis' held-by-production (HBP) position, consolidating its footprint in the TMS Core. Currently, Australis holds an 88% working interest in the Willson unit, with future adjustments expected following completion of the carry program and any additional interests secured before spud.
Ongoing Preparations Signal Momentum for Additional Wells
Beyond the Willson 1H, Australis is progressing permit applications for the second and third wells in the carry program, expected to be lodged in the coming months. Detailed planning is advancing in close collaboration with the development partner, focusing on finalising well architecture, data acquisition strategies, and fracture stimulation designs. While no firm spud date has been confirmed, the companies are preserving the option for a Q4 2026 start, signalling readiness to mobilise swiftly once approvals and contracts are in place.
Strategic Leasing and Shareholder Engagement Efforts
Australis and its partner have been actively deploying a US$1 million land leasing budget within the TMS Area of Mutual Interest (AMI), targeting both current and future drilling units. This leasing program aims to strategically expand Australis' acreage within the core producing area, with updates to be provided in forthcoming quarterly reports. In parallel, Australis has launched a new company website designed to enhance communication and provide timely operational updates, encouraging shareholder and investor engagement through email alerts.
Partnership and Financial Position Underpin Forward Program
The carried work program stems from a partnership struck in late 2025 with a US-listed independent oil and gas company, which committed up to US$46.25 million for new well development. This arrangement includes Australis retaining a 20% working interest in the program while earning an 80% interest in undeveloped HBP acreage. The company also recently sold 90% of its working interest in producing wells to EQV, strengthening its balance sheet and ensuring funding for the forward drilling campaign.
Independent assessment by Ryder Scott at year-end 2025 valued Australis' TMS acreage with 62 million barrels of 2P plus 2C recoverable volume, underscoring the significant resource potential awaiting development. The upcoming drilling and leasing programs will be critical to unlocking this value and validating the extended lateral drilling approach proposed for Willson 1H.
Bottom Line?
The outcome of the July permit hearing and subsequent drilling progress will be pivotal in defining Australis' ability to capitalise on its TMS acreage and the development partner's capital commitment.
Questions in the middle?
- Will the Mississippi Oil and Gas Board approve the Willson 1H permit as scheduled?
- How will the extended 10,000-foot lateral perform compared to previous TMS wells?
- What impact will ongoing leasing activities have on Australis' acreage and future drilling inventory?