The Sydney-based newcomer, headed by industry veteran Grant Jagelman, will open its books in September. Its shares come with one free option each, exercisable at A20c, that expire on December 31 2009.

AOC expects to hop straight into action with six wells to be drilled before the end of the year, beginning after its ASX-listing, tentatively scheduled for mid-October. The company has commitments for a total of 13 wells over two permit areas.

Jagelman, previously chief executive officer and chairman of Moage Ltd, Claremont Petroleum NL, Beach Petroleum NL and Woodbine Petroleum US Inc, and currently a 50% shareholder/owner of unlisted Timor Oil Ltd, is AOC’s managing director. He will hold a one sixth shareholding in the new company.

He is joined on AOC’s board by chairman Ian Ferrier, a chartered accountant who founded and now consults to the firm Ferrier Hodgson. Other non-executive directors include geologist John Blumer, managing director of Sydney-based petroleum exploration and management firm RobSearch Australia, and Peter Cockcroft, a petroleum geologist and engineer who has had management roles with BHP, Shell, Premier Oil and Fletcher Challenge. Cockcroft is currently also a director of Perth-based Baraka Petroleum Limited.

AOC’s first wells will be drilled in the South Australian Cooper/Eromanga Basin permit PEL 182, which lies in the west flank of the Patchawarra Trough and surrounds the Coongie Lakes National Park about 60km north of the Moomba production hub.

AOC has farmed into this permit, operated by Perth company Eagle Bay Resources NL. AOC will earn a 12.5% interest by funding 25% of the cost of the first five wells, all of which are slotted to be drilled this year.

The two largest prospects – which are as yet unnamed – lie in the permit’s south-west corner near the basin margin, in a similar orientation to the Christies, Sellicks and Charo oil discoveries further to the south.

Eagle Bay has delineated two other prospects and a string of six leads running down the eastern edge of the permit close to the Santos Tarragon, Telopea and Keleary finds. Reg Sprigg and Acrasia fields are about 50km further east.

Several Santos-held production licences and pipeline infrastructure are also within the exploration permit boundaries.

AOC’s second block is another farm-in, this time in the onshore Carnarvon Basin.

Permit EP435, operated by Empire Oil and Gas NL of Perth, contains the Parrot Hill and Roberts Hill oil discoveries and three untested prospects. The Rough Range oil field production licence is also within the permit but excluded from the farm-in deal.

AOC will gain a 25% interest in the permit after funding 50% of the cost of one new exploration well.

Empire’s mapping suggests the best potential for commercial oil discoveries are in three prospects located on the eastern side of the major Rough Range fault. Named Parrot Hill East, Pundan and Dune, these are believed to have been formed during the early Cretaceous period before oil migration into the region.

AOC also has several other prospects under negotiation around Australia and expects to quickly expand its exploration activities after listing.

Following the public float, AOC will have more than 43 million shares on issue and a market capitalisation of A$8.4 million. Cash on hand will be A$5.75 million. Brokers to the issue are Findlay & Co of Sydney.