A deliberate and considered business strategy
Australis employed a strategy of taking advantage of market conditions that existed in 2015 to 2017 to acquire a large ownership position within the Tuscaloosa Marine Shale (TMS), one of the last remaining emerging oil shale basins onshore in the USA. This acreage with its proven reserves and large undeveloped resources, together with our Portugal onshore license areas, provides the platform for significant value accretion with the increasing oil price.
Our strategy focuses on:
- managing existing production to maximise field cashflows;
- extending existing and securing new leases on longer terms within the TMS core area thereby capturing well locations and oil resources for future development; and
- commence a limited drilling program to:
- repeat the productivity results of the last 15 wells drilled in our core area;
- demonstrate the high value single well economics; and
- lift the overall value of our TMS acreage.
Australis has a proven board and management team
The board and key management are experienced and have a successful track record in acquiring, developing, managing, financing and realising value from oil and gas assets in the USA.
Primary aim of our strategy is to deliver shareholder value
Our vision is to deliver superior shareholder returns by exercising disciplined capital management during the execution of the planned business strategy.
We will achieve this aim by:
- maximising the value of our assets in the USA and Portugal; and
- retaining flexibility with respect to the financing, timing and extent of future development of each asset, achieved as a result of:
- our operator status which ensures direct control over the timing and amount of capital expenditure to be committed;
- our existing cash balances and expected cash flows from our existing oil production within the TMS; and
- our ability to leverage our unique acreage position to consider partnership opportunities at the appropriate time