Introduction

TUSCALOOSA MARINE SHALE (TMS)

ONSHORE USA

Through multiple acquisitions and targeted leasing, Australis has achieved a strategic acreage position within the TMS, one of the last emerging oil shale basins onshore in the USA which has similar oil productivity to the best areas within US shale such as Eagle Ford and Permian basin in Texas.

At 31 December 2025, Australis holds 47,200 net acres in the oil rich TMS core, making it the largest acreage holder in that region. Following the sale of 90% of its working interest in producing TMS wells to EQV Australis retains interest in 47 non op wells generating positive cashflow.

This large acreage position within the TMS core, with it's associated production and cashflow, proven reserves and large undeveloped resource provides the platform for significant value creation for Australis shareholders. 

See the reserves and resources section for more detail Reserves and Resources. 

As the unconventional oil industry becomes more mature then quality future drilling inventory becomes increasingly scarce and expensive within the established basins. This makes earlier stage plays such and the TMS with the ability to scale leasehold and further optimise well design attractive.

The recently announced Development transaction provides for a 20% carry for Australis on a development program of up to US$46.25 million working with an established public company with operations in multiple unconventional basins.  This program will generate cash flow for Australis and will see the play tested with modern technology and techniques to explore the upside to the already competitive productivity achieved in 2014.