- 01AOK: Emu Apple-1 10–20 bbl/d, no water.
- 02Brent near US$100; restart Emu-2/3 and Riverslea-1/3 in 2 wks.
- 03CA gas: ~350 Mcf/d now; aim ~500 with compressor.
Australian Oil Company (ASX: AOK) is building production momentum across its Australian and Californian oil and gas assets, with Emu Apple-1 producing 10 to 20 barrels of oil per day following a recent well intervention.
No water cut has been observed from the Surat Basin well to date, supporting the potential for higher output once post-intervention clean-up is complete and operating conditions are further optimised.
With Brent oil recently approaching US$100 per barrel, Australian Oil is assessing the restart of Emu Apple-2 and Emu Apple-3 alongside Riverslea-1 and Riverslea-3, while the next Emu Apple crude lifting is anticipated within a fortnight.
The company is also progressing gas commercialisation at its Major gas field, has restored two Californian wells to production, and is negotiating with regulators in two jurisdictions over international exploration concessions.
Emu Apple Restart Plans
Emu Apple-1 is being maintained at its existing pump rate during clean-up, with fluid levels remaining significantly above pump intake and Australian Oil seeing scope to increase production over the coming weeks once the well stabilises.
The absence of water production is helping preserve evaporation pond capacity and simplify produced-fluid management, while the company is monitoring pump rates, fluid output, and storage levels ahead of the next crude lifting.
Australian Oil has identified lightweight hydraulic pumping units for potential use at Emu Apple and Riverslea, with their mobility and ability to be installed without concrete foundations considered capable of reducing implementation time and capital intensity.
At Riverslea, final crude assays are being completed to support offtake arrangements and the planned restart of Riverslea-1 and Riverslea-3, while spare load-out and pumping infrastructure at Emu Apple is intended to move to Riverslea after clean-up and the next lifting.
“The company is prioritising activities that can make best use of existing infrastructure, improve cash generation, and position Australian Oil for a stronger production and growth base,” managing director Kane Marshall said.
Gas Assets Adding Momentum
Prospective resource work across the permit containing Riverslea and Yapunyah has been prioritised as higher oil prices improve the case for advancing mapped prospects close to existing field infrastructure.
Australian Oil is also advancing a raw gas sale agreement for Major-4, with final commercial and operational matters covering metering, shutdown valves and communications being negotiated and wellhead pressure measured at 1,000 pounds per square inch.
In California, Reclamation Board-7 and Reclamation Board-8 have returned to production after further maintenance and are flowing at a combined rate of about 350 thousand cubic feet per day (Mcf/day).
Routing the wells through a PEOCO-owned compressor is expected to lift combined production towards 500Mcf/day, while Californian gas prices were consistently above US$3.70 at Citygate during the final week of August.
Alongside the domestic and Californian production work, Australian Oil is pursuing discussions with regulators in two international jurisdictions over exploration concessions as it evaluates potential additions to its broader exploration and development pipeline.
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