ASX: AOK - Australian Oil Company
- Matt Birney
- 7 days ago
- 3 min read
Australian Oil Company: Remarkable - an ASX small cap actually producing oil!
Australian Oil Company Managing Director Kane Marshall on 3AW, 2GB & 4BC Bulls N' Bears Report
Listen to ASX-listed Australian Oil Company Managing Director Kane Marshall talk to Matt Birney on the Bulls N’ Bears Report about the company’s deal to sell oil produced onshore in Australia – right now!
TO LISTEN TO THE AUSTRALIAN OIL COMPANY AUDIO INTERVIEW - CLICK BELOW
Australian Oil has been producing gas out of California but more recently claimed Australian oil producer status from its Emu Apple field west of Brisbane. It also has its foot on the nearby Riverslea-Yapunyah oil ground where it has historical production, potential restart upside from shut-in wells and plenty of exploration optionality. The company also has gas assets - including a pipeline - in Queensland, but for now, it is all about Emu-Apple where it has just locked in a lifting agreement for the oil.
RADIO INTERVIEW - TRANSCRIPT
Matt Birney - Welcome to Bulls N' Bears, brought to you today by oil producer Australian Oil Company.
Matt Birney - ASX code: AOK
Matt Birney - I'm Matt Birney, and I'm joined now by the Managing Director of Australian Oil Company, Kane Marshall.
Matt Birney - Hi, Kane.
Kane Marshall - G'day, Matt.
Matt Birney - Okay, Kane. So, Australian Oil Co. has just signed a commercial sales agreement for oil produced from your Emu Apple project west of Brisbane that I understand you only picked up in December last year. We'll get to that, but firstly, how many barrels of oil is this thing produced historically and how many barrels of oil is it producing for you right now?
Kane Marshall - Well, historically, it's produced nearly 200,000 barrels predominantly from one well, and we're currently producing about 20 barrels of oil per day.
Matt Birney - All right. So, you've just signed a commercial sales agreement for oil out of this project. Who's that agreement with? What are the commercial bona fides of the counterparty and where will you ship the oil to?
Kane Marshall - Well, it's actually with the local refinery, Inland Oil Refinery, which is not one of the two that's talked about in the media. It's actually based in Eromanga and they predominantly take all the domestic crude from the oil fields in the area and we're one of the only few companies that actually produce crude domestically listed on the ASX.
Matt Birney - Well, let's get into the nuts and bolts of that sales agreement. How much will you get for each barrel of oil and how many barrels of oil have they committed to buy and for how long?
Kane Marshall - With what's going at the moment, they'll take whatever they can get. There's no limit from Emu Apple itself and the price is weighted to Brent which is trading at about $95 US per barrel. So quite attractive.
Matt Birney - You're getting 15 to 20 barrels a day out of Emu Apple at the moment. Are there any low hanging opportunities to increase that number or is that where it sits?
Kane Marshall - No tons. I think we can put a bigger pump, increase production in that well materially. So maybe three or four fold. And then we obviously got other sort of low hanging fruit opportunities from the existing well count.
Matt Birney - Now to the east of this project is your also recently acquired and currently shut down Riverslea oil field. Tell me how many barrels of oil did that operation produce historically and what opportunities if any do you have to restart oil production there?
Kane Marshall - So that's produced actually more, probably more like nearly half a million barrels and the last well that flowed from there, we actually it was tested last year at about 20 barrels oil per day. So the plans are: bring that online, increase the production and get it online along with our Emu Apple production.
Matt Birney - Kane Marshall from Australian Oil Co.
Matt Birney - Thanks for joining me on Bulls N' Bears and remember we're only here to give you information, not advice, which you should of course seek independently.
Matt Birney - I'm Matt Birney and this is Bulls N' Bears.
Outro - For more public company interviews go to the money page on the 6PR, 2GB, 3AW and 4BC websites and click the public companies tab.