Highlights

  • Australian Oil raises $2.03M via two-tranche placement to fund Surat Basin operations
  • Funds targeted at production enhancement, exploration, and new venture evaluation
  • Investors to receive options with long-dated expiry, pending shareholder approval

Overview

Australian Oil Company Limited (ASX:AOK) has secured firm commitments for a $2.03 million capital raising through a two-tranche placement to strengthen its Surat Basin oil and gas operations. The funding will support production enhancement at the Emu Apple Oil Field, restart activities at the Riverslea Oil Field, and further exploration across key licences. Additional proceeds will be used for feasibility studies at the Major Gas Field, evaluation of new opportunities, and general working capital. The placement also includes options for investors, subject to approval. Management highlighted strong investor demand and expects the funds to accelerate operational progress and asset development.

How Will the $2 Mn Capital Raising Be Used in Surat Basin Operations?

The capital raised will primarily support Australian Oil’s upstream oil and gas activities in Queensland’s Surat Basin. A significant portion will be directed toward enhancing production at the Emu Apple Oil Field and restarting output from the Riverslea Oil Field. The company also plans to mature exploration targets across its PL 30 and PL 264 assets, aiming to unlock additional resource potential. In parallel, evaluation studies will assess the viability of restarting production at the Major Gas Field and identifying new drilling opportunities. These initiatives are designed to improve near-term output while strengthening long-term reserve growth. Funds will also support working capital requirements and operational flexibility across its broader portfolio, including international activities.

What Does the Capital Structure and Investor Offer Include?

The $2.03 million raise is structured as a two-tranche placement priced at $0.0029 per share. Tranche 1 will be issued under existing placement capacity, while Tranche 2 is subject to shareholder approval. Investors participating in the placement will receive one option for every two shares subscribed, exercisable at $0.006 until June 2028, pending approval. Directors have also indicated participation in Tranche 2, aligning management interests with shareholders. Additionally, the company is considering a Share Purchase Plan (SPP) of approximately $250,000 to allow retail investors to participate on similar terms. Sanlam Private Wealth is acting as lead manager, receiving a 6% fee and additional options subject to approval. This structure aims to balance institutional and retail participation.