Australian Oil Company Accelerates U.S. Expansion with Strategic Pipeline Deal

Australian Oil Company Limited (ASX: AOK) has achieved a significant milestone in its U.S. expansion by acquiring pipeline infrastructure in the Rio Vista Gas Field, Sacramento Basin, through its wholly owned subsidiary, PEOCO LLC. The newly acquired pipeline connects directly to AOK’s 100%-owned Rec Board project, enabling gas to flow into the California Resources Corporation (CRC) gathering system under an executed gas sales agreement. The infrastructure is expected to significantly boost production capacity, with a target of 500 mcf/d gross gas flow—up to four times current levels. Reclamation Board-8 is producing at 220 mcf/d with no water cut, surpassing previous combined flow rates.

This strategic move positions AOK to become cash flow positive, creating a platform to fund its larger exploration initiatives. With California gas prices trading at a premium and positive momentum returning to U.S. oil and gas, the company is also actively evaluating bolt-on acquisitions and new exploration opportunities to expand its footprint.

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