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Australian Oil Company (ASX: AOK) has achieved a milestone with the signing of a crude oil and condensate lifting agreement with IOR Energy for production from the Emu Apple oil field in central Australia.
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This agreement defines commercial framework governing the sale of crude oil and condensate production from Emu Apple for a 12-month term.
IOR owns and operates the Eromanga oil refinery, located approximately 1000 km west of Brisbane Australia. The refinery produces high quality diesel fuels, heating oils and kerosene, as well as variety of speciality petroleum products for industrial uses. It has been continuously processing up to 1,250 barrels per day of locally produced crude oil since it was commissioned in 1986.
Under the agreement, the sales price payable for the crude oil supplied is determined based on an averaged Brent oil value converted to Australian dollars for each month of production delivered.
MD, Kane Marshall, said the lifting agreement provides a commercial pathway for the sale of production from Emu Apple and supports the company’s production activities within its Surat Basin assets.
“This agreement formalises the commercial framework for the sale of production from Emu Apple and its expansion. Establishing structured offtake arrangements is an important component of progressing our Surat Basin assets in a disciplined and commercially focused manner.
“Importantly the revenue is cash flow positive from the asset and will be used towards expansion of production from the field as well as progressing exploration and development activities across our assets that we will shortly be updating to the market.”
Mr Marshall told shareholders the cash from lifting of Emu Apple oil will assist in funding additional exploration and developments within the company’s PL 264 licence and other Surat Basin opportunities.
The first lifting of oil from Emu Apple with AOK as operator is expected to occur within the next fortnight.
This delivery is from oil production since late January 2026 and is anticipated to be approximately 500 barrels, dependent on timing.
AOK’s other Surat Basin opportunities include Riverslea (PL 30), where the company is progressing assay work for the Riverslea crude with a view to establishing a separate lifting arrangement with IOR for production from Riverslea and potentially Yapunyah.
AOK is steady at 0.4¢. Mkt cap $5.509M
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