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- Maiden oil lifting from Emu Apple oil field in late March
- Funds from maiden sales anticipated to be received this month
- 3D seismic volume from Riverslea lease being interpreted
- Preliminary mapping of the Major Gas Field underway
Australian Oil Company (ASX: AOK) is ramping up its activities in the Surat Basin after recently achieving its maiden crude oil lifting from the Emu Apple field.
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With production levels consistent with expectations of approximately 15 barrels of oil per day, the company is currently assessing longer-term production improvements by way of well intervention as part of its strategic initiatives previously disclosed to the market in conjunction with engineering studies aimed at recommencing oil production from Riverslea further south-east.
A wellhead sample from Riverslea-3 has now been taken to conduct assays to underpin commercial discussions and negotiations for a crude sales agreement and reactivation of the Riverslea oil field. The assays are expected to be concluded by the end of the month.
Feasibility studies have commenced with suitable rig service companies and coil tubing vendors about intervention in Riverslea-3.
The company is also continuing to assess undertaking intervention activities at Riverslea-1 and Yapunyah-1 with a view of restarting production from both oil pools in light of sustained oil prices.
On the exploration side 3D seismic data has been loaded and interpretation has commenced to mature exploration prospects for drilling and for integration with iodine and geochemical databases.
MD, Kane Marshall, said preliminary mapping indicates other exploration potential up-dip of drilling the Annabelle-1 well, warranting further investigation.
Elsewhere, preliminary mapping of the Major Gas Field suggests Major-4, a shut-in production well, is on the edge of the gas pool near the gas-water contact and has potential for re-instatement back to production on a cyclical basis to manage future water production.
Mapping and volumetric work is anticipated to be completed in the coming weeks, which is being undertaken in parallel with commercial discussions for selling gas from Major through PPL 22 into the Silver Spring Gas Plant.
The company has also participated in and submitted bids for two exploration blocks in Queensland’s latest oil and gas licensing round.
“The future activity for the company occurs at a time when both sentiment and commodity prices are the best they have been in years,” Mr Marshall said.
“Not only are we advancing our Surat exploration and development activities, but we are actively pursuing several new venture opportunities to strengthen and complement our diversified asset portfolio. We look forward to updating the market in the near-term as we seek to build and expand a robust business case in Australia, particularly as energy security is front and centre for all Australians.”
AOK is steady at 0.3¢. Mkt cap $4.722M.
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