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Australis Oil & Gas Secures TMS Development Partner and Sheds Debt as Cash Surges in Q4

Story Highlights
  • Australis Oil & Gas struck a major TMS farm-out and EQV deal, boosting liquidity and eliminating debt.
  • Lower oil prices and higher workover costs hurt quarterly profitability, despite stable volumes and solid reserves.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Australis Oil & Gas Secures TMS Development Partner and Sheds Debt as Cash Surges in Q4

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Australis Oil & Gas ( (AU:ATS) ) has shared an announcement.

Australis Oil & Gas has significantly reshaped its balance sheet and development outlook in the fourth quarter of 2025 by securing a US-listed independent as a development partner in the Tuscaloosa Marine Shale, giving that partner the right to invest up to US$46 million in new wells while carrying Australis for a 20% working interest in exchange for up to 80% of the company’s undeveloped TMS core acreage. In parallel, a financing transaction with EQV Group saw Australis sell 90% of its interest in producing wells for US$16.9 million, enabling full repayment of its Macquarie credit facility and boosting quarter-end cash to US$14.2 million with no debt, even as lower oil prices, higher workover activity and flat volumes pressured field netback and pushed adjusted EBITDA slightly negative; an updated independent reserves assessment now pegs proved developed reserves at 124,000 barrels with an NPV(10) of US$2.4 million and confirms a mid-case 2P+2C recoverable estimate of 62 million barrels. These moves collectively reinforce Australis’s position in the TMS by pairing a capital-rich operating partner with a strengthened balance sheet, positioning the company to pursue future development despite near-term earnings softness driven by commodity price weakness and elevated operating costs.

The most recent analyst rating on (AU:ATS) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Australis Oil & Gas stock, see the AU:ATS Stock Forecast page.

More about Australis Oil & Gas

Australis Oil & Gas Limited is an upstream oil and gas company focused on the strategic development of onshore assets in the United States, particularly within the core of the oil-producing Tuscaloosa Marine Shale (TMS). The company controls a material and scalable acreage position in this largely undeveloped but delineated play, underpinned by 62 million barrels of 2P+2C net reserves and resources, and is led by the founders and key executives of Aurora Oil & Gas, who have a history of delivering shareholder value.

YTD Price Performance: 13.33%

Average Trading Volume: 3,476,634

Technical Sentiment Signal: Hold

Current Market Cap: A$23.31M

For detailed information about ATS stock, go to TipRanks’ Stock Analysis page.

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