John Marshall’s 2.85 Million Options Expire Unexercised, Reducing Australian Oil Company Director’s Holdings

Details of John Marshall’s Option Expiry on 30 June 2026

The company’s update confirms that 2,857,143 options held indirectly by director John Lloyd Kane Marshall expired on 30 June 2026. These options had an exercise price of $0.008 each and were not exercised before expiry. No consideration was received, meaning the options lapsed without generating proceeds or affecting the company’s issued Capital/">share capital.

This outcome is typical when options expire out of the money or when holders choose not to exercise them. The disclosure is a mandatory regulatory requirement under ASX Listing Rule 3.19A.2. Companies must promptly lodge such notices when a director’s relevant securities interests change. While the filing does not indicate broader corporate developments, it updates the market on the director’s current exposure to AOK securities.

Marshall’s Indirect Holdings Through Three Entities

The notice reveals that Marshall’s interests are held indirectly via three entities: KJM Consultants Pty Ltd (trustee for The Kane Marshall Superannuation Fund), Wildcat Capital Pty Ltd (trustee for the Wildcat Capital Resources Trust), and Odyssey Oil Pty Ltd. Marshall is a beneficiary and/or director of these entities, meaning his relevant interests arise through these associations rather than direct registered ownership of AOK securities.

Using multiple holding vehicles—including a superannuation fund, an investment trust, and a private company—is common among directors managing their investments. However, the notice does not specify the allocation of shares or options among these entities. The company reported the total indirect holding in aggregate without individual breakdown.

Marshall’s Post-Expiry Holdings: 29.6 Million Shares and 30 Million Options

After the $0.008 options expired, Marshall’s updated indirect holdings include 29,618,275 fully paid ordinary shares in Australian Oil Company Limited. This shareholding was unaffected by the notice—no shares were bought or sold—confirming the sole change was the expiry of the option tranche.

Marshall retains three remaining option tranches of 10,000,000 options each, totaling 30,000,000 options. These comprise options exercisable at $0.02, $0.035, and $0.045 respectively, all expiring on 30 April 2029. This provides Marshall approximately three years from the notice date before these options expire.

Exercise Prices and Director Incentive Structure

The three remaining option tranches carry staggered exercise prices of $0.02, $0.035, and $0.045. Such tiered pricing is typical in director and executive incentive plans, rewarding holders as the company’s share price surpasses each exercise price. The value and likelihood of exercising these options increase as AOK’s share price rises above these thresholds.

The immediate share price impact was not disclosed publicly. Investors may note that for Marshall to profit from all three tranches, AOK’s share price must exceed $0.045 before 30 April 2029. The expiry of the lowest-priced $0.008 tranche without exercise or consideration suggests that the share price was below this level at expiry, although the company did not comment on this in the filing.

Reasons Behind Nil Value of Expired Options

Options lapse without value when holders do not exercise them before expiry, usually because the market price of the underlying shares is at or below the exercise price, making exercise uneconomical. In this case, the $0.008 exercise price options were allowed to expire for nil consideration, indicating exercising was not financially beneficial to Marshall on 30 June 2026.

The company provided no specific commentary on the share price at expiry. However, regulatory requirements mandate disclosure of any consideration received, whether cash, non-cash, or nil. The notice clearly states nil consideration, consistent with options expiring worthless, fulfilling Corporations Act and ASX Listing Rules obligations.

Regulatory Requirements for Appendix 3Y Filings

Under ASX Listing Rule 3.19A.2 and Section 205G of the Corporations Act 2001, listed companies must notify the exchange of any change in a director’s relevant interests in securities. Australian Oil Company submitted this Appendix 3Y notice both as the entity and as agent for Marshall, following standard practice. The notice is triggered by any change—including expiry—in securities held directly or indirectly by a director.

The previous notice regarding Marshall’s interests was lodged on 26 June 2026, days before the 30 June expiry. This suggests the earlier filing anticipated or preceded the option expiry now formally recorded. The filing confirms no closed period trading clearance issues arose, as indicated by a negative response to the relevant question in Part 3 of the form.

Capital Structure and Director Alignment Considerations

Director share and option ownership is closely monitored by investors as a measure of alignment between management and shareholder interests. Marshall’s indirect holding of 29,618,275 ordinary shares represents a significant equity stake in Australian Oil Company, demonstrating ongoing commitment. The exact percentage of issued capital this represents was not disclosed, as Appendix 3Y filings report absolute numbers rather than percentages.

Marshall’s retention of 30 million options across three tranches expiring in April 2029 also aligns his incentives with AOK’s future share price performance. If the company meets its operational goals and the share price rises above the exercise prices, these options could yield substantial value. Investors may interpret these holdings as evidence of Marshall’s continued financial interest in the company’s long-term success through 2029.

What Investors Should Monitor Regarding Remaining Options

With the $0.008 options now expired, focus shifts to the three remaining tranches expiring in April 2029. Any exercise of these options would require a further Appendix 3Y filing disclosing the number exercised and consideration paid. Such exercises would result in new fully paid ordinary shares being issued to Marshall’s associated entities, increasing his indirect equity stake.

Investors should also watch for any new options or securities granted to Marshall or other directors linked to future capital raises, exploration milestones, or board decisions. This notice does not disclose any upcoming corporate activity, focusing solely on the administrative recording of the option expiry. Future Appendix 3Y filings will reveal any further changes in Marshall’s holdings.

No Change to Ordinary Shareholdings in This Update

It is important for investors to note that Marshall’s 29,618,275 fully paid ordinary shares held indirectly remain unchanged by this notice. The update affects only the options component of his holdings. There were no on-market or off-market share transactions, no participation in a dividend reinvestment plan, no buy-back involvement, and no new share issuances related to this filing.

This distinction matters for assessing director conviction. A director selling ordinary shares might signal views on near-term prospects, whereas the administrative expiry of options is a contractual event unrelated to trading decisions or valuation opinions. Consequently, this update is unlikely to carry the same interpretive weight as notices disclosing open-market share transactions by directors.