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Australis Oil & Gas (ATS) investor relations material
Australis Oil & Gas Investor Update summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Company background and asset history
Founded by former Aurora Oil & Gas team, leveraging experience from Eagle Ford development and sale for $1.8 billion in 2014.
Targeted oil exposure, high-quality subsurface, and low-cost entry, leading to acquisition of Tuscaloosa Marine Shale (TMS) core acreage between 2016 and 2018.
Drilled six TMS wells in 2018-2019, confirming productivity and subsurface models, aiming to attract a larger partner for full-field development.
TMS play context and industry trends
TMS shares geological similarities with Eagle Ford but is deeper and hotter, initially leading to mixed results and high costs for early entrants.
Encana delineated a productive TMS core by 2014, but industry-wide over-leverage and oil price collapse halted development.
Industry shifted from growth to production maintenance post-2015, focusing on established basins and depleting high-quality inventory.
Well productivity in established plays improved 26% from 2014 to 2021, but declined 13% from 2021 to 2024 due to inventory depletion.
TMS asset and performance outlook
TMS core wells outperform several major U.S. basins and are now comparable to the Delaware Basin on an oil basis.
Subset of late 2014 TMS core wells used as a proxy for future production, showing significant outperformance.
TMS remains an undeveloped Tier 1 oil shale play, with activity previously halted due to oil price collapse and industry focus on established plays.
Technology advancements have increased recovery rates across basins, and the TMS is positioned to benefit from these trends.
The new work program aims to advance the TMS towards full field development and validate modern drilling and completion techniques.
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