Australian Oil has signed a 24-month Brent-linked oil sales agreement for its Riverslea field, removing a key commercial prerequisite for restarting production. On-ground works are underway, with the company targeting completion by year-end before production resumes as soon as practicable.
- 24-month crude and condensate offtake agreement with IOR Energy
- Brent-linked pricing on terms matching the existing Emu Apple agreement
- Riverslea-3 restart prioritised through free-flow production
- Riverslea-1 to follow using hydraulic pumping
- On-ground works targeted for completion by the end of 2026
Riverslea secures its route to market
Australian Oil Company Limited (ASX:AOK) has cleared the last commercial hurdle before bringing its Riverslea Oil Field back online, signing a 24-month oil sales agreement with IOR Energy for crude oil and condensate from the Surat Basin asset. The agreement provides Brent-linked pricing and uses the same commercial terms as AOK’s existing offtake arrangement for the Emu Apple Oil Field.
The deal matters because the restart is no longer only a field-reinstatement exercise. IOR’s role spans fuel importing, distribution, regional logistics and offtake, giving AOK an established sales channel for Riverslea output. The company says the arrangement should provide a strong net-back in the current oil price environment, although it has not disclosed the pricing formula, minimum volumes, restart costs or revenue expectations.
Riverslea-3 leads the production restart
AOK is prioritising Riverslea-3, followed by Riverslea-1. The company plans to begin with free-flow production from Riverslea-3 and then use hydraulic pumping at Riverslea-1. Riverslea-3 has previously tested at 15-17 barrels of oil per day in a free-flow test, but that historical result is not production guidance for the restart.
On-ground works have started, with completion targeted by the end of 2026 and production to commence as soon as practicable afterwards. The two wells are currently shut in, though AOK says they remain in good condition and available for production to recommence. The field has historically produced approximately 564,000 barrels, including 400,000 barrels from Riverslea-3.
Second Surat Basin field moves towards output
The Riverslea agreement extends a commercial relationship that helped support Emu Apple’s restart earlier in 2026. That field has recently been producing from Emu Apple-1, while AOK’s not applicable coverage of the company’s Emu Apple output has tracked production of about 14 barrels a day without water during the latest reported quarter. The Riverslea restart would give AOK two producing oil fields in the basin, subject to the remaining field works and actual operating performance.
Executive Chair Thomas Streitberg said bringing Emu Apple and Riverslea back online in less than 12 months would provide cash flow and improve the company’s technical understanding of its acreage. AOK has framed that combination as the foundation for a producing oil and gas hub, alongside a planned restart of the Major Gas Field, further well interventions and artificial lift, and step-out development and exploration across its wholly owned Surat Basin portfolio.
Restart timing and realised production remain open
The next evidence will come from execution rather than the contract itself: completion of the on-ground works, confirmation that Riverslea-3 flows as intended, and the eventual performance of Riverslea-1 under hydraulic pumping. Until those milestones are met, the agreement establishes a pathway to market but not a guaranteed production date, volume or cash-flow outcome.
Bottom Line?
The commercial path is now in place, but Riverslea’s investment case still turns on the speed, cost and durability of the physical restart.
Questions in the middle?
- Will the remaining on-ground works be completed by the end of 2026?
- What production rate and water performance will Riverslea-3 deliver after restart?
- How will realised Brent-linked net-back pricing translate into cash flow once sales begin?