Australian Oil Company targets 500 Mcf/day gas
- Australian Oil Company restored production at two wells, lifting combined gas flows to approximately 350 Mcf/day.
- Following the announcement, the Australian Oil Company share price was unchanged at $0.0020.
- The company is progressing operations across domestic assets to capture higher global crude prices and regional gas demand.
Australian Oil Company (ASX:AOK) reinstated production at Reclamation Board-7 and Reclamation Board-8, generating a combined flow rate of approximately 350 Mcf/day.
The operational update comes as crude oil prices approach US$100 per barrel, prompting the company to evaluate restarting additional wells.
Kane Marshall, Managing Director of Australian Oil Co., said, “With oil prices strengthening, we are focused on disciplined, low-cost production growth across Emu Apple and Riverslea, while also advancing gas commercialisation opportunities at Major and in California.”
The company stated that planned gas routing through its compressor is expected to increase combined gas rates to approximately 500 Mcf/day.
Following the announcement, the Australian Oil Company share price was unchanged at $0.0020.
The energy firm is also negotiating a raw gas sale agreement for Major-4 while sourcing mobile pumping units for its Emu Apple and Riverslea assets.
Additionally, the business reported zero water cut at its Emu Apple-1 well, which currently produces between 10 and 20 barrels of oil per day.
