UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT
     OF 1934

For the quarterly period ended: March 31, 2009

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from                         to

Commission File Number 000-26721

                        AUSTRALIAN OIL & GAS CORPORATION
                        --------------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                                    84-1379164
          --------                                    ----------
(State or other jurisdiction of             (IRS Employer Identification Number)
incorporation of organization)

                          Level 21, 500 Collins Street
                            Melbourne, Victoria, 3000
                                    Australia

                  Issuer's Telephone Number: (61-3) 8610 4701

                                 NOT APPLICABLE
              (Former name, former address and former fiscal year,
                         if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the proceeding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.   Yes [X] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

     Large accelerated filer [_]                  Accelerated filer [_]
     Non-accelerated   filer  [_]                 Smaller  reporting company [x]
Do  not  check  if  a  smaller  reporting  company)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act. Yes [_] No [X]

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:

43,450,531 shares of common stock, $0.001 par value, as of May 14, 2009.


                                      INDEX

                        AUSTRALIAN OIL & GAS CORPORATION
                        (an exploration stage enterprise)

                 For the Quarterly Period Ended: March 31, 2009


                          Part 1. FINANCIAL INFORMATION

Item 1. Financial Statements. (Unaudited)

          Consolidated Balance Sheets as at March 31, 2009 (Unaudited) and
          December 31, 2008 (Audited)

          Consolidated Statements of Operations for the three months ended March
          31, 2009 and 2008 (Unaudited), and for the cumulative period from
          August 6, 2003 (Date of Inception) to March 31, 2009 (Unaudited)

          Consolidated Statements of Cash Flows for the three months ended March
          31, 2009 and 2008 (Unaudited) and the cumulative period from August 6,
          2003 (Date of Inception) to March 31, 2009 (Unaudited)

          Notes to Financial Statements (Unaudited)


Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Item 4. Controls and Procedures.


                           Part 11. OTHER INFORMATION


Item 6. Exhibits.


Signatures






Item 1. Financial Statements (Unaudited)

                        Australian Oil & Gas Corporation
                        (an exploration stage enterprise)
                           CONSOLIDATED BALANCE SHEETS



(Dollar amounts in thousands)                                                Mar. 31, 2009   Dec. 31, 2008
                                                                                (Unaudited)       (Audited)
                                                                                         $               $
                                                                              ------------    ------------
                                                                                                   
                                     ASSETS
Current assets:
       Cash and cash equivalents                                                         7               8
       Receivables                                                                       1               1
                                                                              ------------    ------------
       Total Current Assets                                                              8               9
                                                                              ------------    ------------
Total Assets                                                                             8               9
                                                                              ============    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
       Accounts payable and accrued expenses (Note 4)                                  197             214
       Accounts payable to director related entities                                   186             178
                                                                              ------------    ------------
       Total Current Liabilities                                                       383             392
                                                                              ------------    ------------

                                                                              ------------    ------------
Total Liabilities                                                                      383             392
                                                                              ============    ============

Stockholders' Equity

Common stock, $0.001 par value;75,000,000 shares authorized, Issued shares,
       44,000,531 at March 31, 2009 and 43, 450,531 at December 31, 2008;
       Outstanding shares, 43,450,531 at
       March 31, 2009 and 41,050,531 at December 31, 2008. (Note 5)                     35              33
       Capital in excess of par value                                                2,644           2,519
       Accumulated other Comprehensive Income                                          300             316
       Deficit accumulated during the exploration stage                             (3,354)         (3,251)
                                                                              ------------    ------------
       Total Stockholders' Equity                                                     (375)           (383)
                                                                              ------------    ------------

       Total Liabilities and Stockholders' Equity                                        8               9
                                                                              ============    ============



  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                       3





                        Australian Oil & Gas Corporation
                        (an exploration stage enterprise)
                      CONSOLIDATED STATEMENT OF OPERATIONS
               For the three months ended March 31, 2009 and 2008
      and for the period from inception (August 6, 2003) to March 31, 2009

(Dollar amounts in thousands)
                                                  For the three  For the three           From
                                                   months ended   months ended   inception to
                                                   Mar 31, 2009   Mar 31, 2008   Mar 31, 2009
                                                              $              $              $
                                                    -----------    -----------    -----------
                                                                               
Expenses
    Exploration                                              68            157          1,878
    General and administrative                               31             32          1,060
    Merger and reorganization                                --             --            249
                                                    -----------    -----------    -----------
    Total operating expenses                                 99            189          3,187
                                                    -----------    -----------    -----------
Loss before other income                                    (99)          (189)        (3,187)
                                                    -----------    -----------    -----------

Other Income (Expense)
    Income from sale of tenement                             --             --          1,650
    Write down of investments                                --             --         (1,759)
    Currency exchange gain / (loss)                          (2)            14              6
    Interest income                                          --              5             63
    Interest expense                                         (2)            (8)          (103)
                                                    -----------    -----------    -----------
Loss before provision for income tax                       (103)          (178)        (3,330)

Income tax provision                                         --             --             24
                                                    -----------    -----------    -----------
Net Loss                                                   (103)          (178)        (3,354)
                                                    ===========    ===========    ===========


Loss per Common Share:
Basic & Diluted                                     $     (0.00)   $     (0.01)   $     (0.10)

Weighted average common share used in calculation    43,456,575     37,406,026     32,852,744
                                                    ===========    ===========    ===========


        The accompanying notes are an integral part of these consolidated
                             financial statements.


                                       4




                        Australian Oil & Gas Corporation
                        (an exploration stage enterprise)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the three months ended March 31, 2009 and 2008
        and Cumulative from inception (August 6, 2003) to March 31, 2009

(Dollar amounts in thousands - except per share data)
                                                             For the three  For the three           From
                                                              months ended   months ended   inception to
                                                              Mar 31, 2009   Mar 31, 2008   Mar 31, 2009
                                                                         $              $              $
                                                             -------------  -------------   ------------
                                                                                         
Cash flows from operating activities:
Net profit / (loss)                                                   (103)          (178)        (3,354)
 Adjustments to reconcile net profit/(loss) to net cash
    used in operating activities:
Adjustments for non-cash items
    Compensation expense                                                28             20            695
     Currency exchange loss/(gain)                                     (12)           (40)            63
     Write down of investment                                           --             --          1,759
     Issuance of Convertible Note in lieu of repayment of
     advances from director related entity                              --              7            100
     Gain on transfer of interest in tenement                           --             --         (1,650)
Change in assets and liabilities:
    Increase/(decrease) in accounts payable                             86             15            592
    Increase /(decrease) in income tax payable                          --             (1)            (9)
    Decrease in exploration assets                                      --             --             --
    Decrease/(increase) in accounts receivable                          --             --             82
                                                                ----------     ----------     ----------

    Net cash used in operating activities                               (1)          (177)        (1,722)
                                                                ----------     ----------     ----------
Cash flows from financing activities:
Proceeds from advance from director-related entities                    --              2             75
Repayment of advance from director-related entities                     --             --            384
Proceeds from the sale of Common stock - net                            --             --            (73)
                                                                ----------     ----------     ----------

Net cash (used in)/ provided by financing activities                    --              2            386
                                                                ----------     ----------     ----------

Cash flows from investing activities:
Proceeds from sale of tenement                                          --             --          1,261
                                                                ----------     ----------     ----------

Net cash provided by investing activities                               --             --          1,261
                                                                ----------     ----------     ----------

Increase/ (decrease) in cash                                            (1)          (175)           (75)
Cash at beginning of period                                              8            484             --
Effect of currency exchange rate fluctuations on cash held              --             12             82
                                                                ----------     ----------     ----------

Cash at end of period                                                    7            321              7
                                                                ==========     ==========     ==========
Supplemental disclosure of non-cash activities:

Administration Fees charged by Setright Oil & Gas Pty Ltd                6              9            214
Interest charged by Great Missenden Holdings Pty Ltd                     2              8            107
Issuance of Stock for compensation and settlement of advances          126             --            979
Gain on transfer of interest in tenement                                --             --          1,650



   The accompanying notes are an integral part of these consolidated financial
                                   statements

                                       5

                       Australian Oil & Gas Corporation
                        (an exploration stage enterprise)
                    NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

The accompanying interim consolidated financial statements of Australian Oil &
Gas Corporation are unaudited. However, in the opinion of management, the
interim data includes all adjustments, consisting of only normal recurring
adjustments, necessary for a fair presentation of the results for the interim
period. The results of operations for the period ended March 31, 2009 are not
necessarily indicative of the operating results for the entire year. The interim
financial statements should be read in conjunction with our Annual Report on
Form 10-K for the year ended December 31, 2008.

Note 1:  Organization

Australian Oil & Gas Corporation (the Company) was incorporated in Delaware on
August 6, 2003, and began operations on August 11, 2003 and is considered to be
a crude petroleum and natural gas company in the exploratory stage as defined by
SFAS No. 7. Since inception it has been engaged in the assessment of oil and gas
exploration properties.

The authorized capital stock of the AOGC consists of 75,000,000 shares of common
stock (AOG Common Stock), $0.001 par value

The Company has two wholly owned, Delaware-incorporated US subsidiaries;
Gascorp, Inc. and Nations LNG, inc. and two wholly owned Australian
subsidiaries; Alpha Oil & Natural Gas Pty Ltd and Nations Natural Gas Pty Ltd.

Alpha Oil & Natural Gas Pty Ltd itself has two wholly owned Australian
subsidiaries, Vulcan Australia Pty Ltd (which holds the joint venture interest
in the Vulcan Joint Ventures) and Braveheart Oil & Gas Pty Ltd (which holds the
joint venture interest in the Browse Joint Venture).

Note 2:  Summary of Significant Accounting Policies

Use of estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and footnotes thereto. Actual results could differ from those
estimates.

Note 3:  Related Party Transactions

Mr. E Geoffrey Albers, the Chairman and President of AOGC, is a director and
shareholder of each of Great Missenden Holdings Pty Ltd and of Setright Oil &
Gas Pty Ltd.

Great Missenden Holdings Pty Ltd charged $1,538 for interest on all advances
during the quarter. Setright Oil & Gas Pty Ltd charged the Company $5,966 during
the quarter for the provision of accounting and administrative services rendered
by third parties for the benefit of the Company, but not including services
rendered by Mr. E Geoffrey Albers, who is remunerated separately.

We also have the use of premises in Australia at Level 21, 500 Collins Street,
Melbourne, Victoria. The office space is taken on a nonexclusive basis, with no
rent payable, but the usage of the premises is included in the charges Setright
Oil & Gas Pty Ltd makes in respect to the administration of the Company.


                                       6

Mr. Albers is a director and shareholder in the joint venture participants with
Alpha Oil & Natural Gas Pty Ltd (Alpha) with regard to exploration permits
ACP/33, ACP/35 and AC/P39; namely National Gas Australia Pty Ltd, Natural Gas
Corporation Pty Ltd and Auralandia N.L. Mr Muzzin is a shareholder in Auralandia
N.L. As a result of incurring expenditures, National Gas Australia Pty Ltd has
earned an aggregate 25% interest in each of AC/P33, AC/P35 and AC/P39 (Vulcan
Joint Venture), 5% of which was earned from AOGC subsidiary, Alpha.

With regard to the Browse Joint Venture, Mr. Albers is a director and
shareholder in each of Batavia Oil & Gas Pty Ltd and Exoil Limited, the parent
of Hawkestone Oil Pty Ltd. He is a major shareholder in the parent of
Goldsborough Energy Pty Ltd. All of these companies are the holders of the
Browse Joint Venture.

Mr. Mark A Muzzin, a director and Vice-President of AOGC, is a shareholder in
Exoil Limited, the parent of Hawkestone Oil Pty Ltd.

With regard to the National Gas Consortium, Mr. Albers is a director and
shareholder in each of National Oil & Gas Pty Ltd, Australian Natural Gas Pty
Ltd and Natural Gas Australia Pty Ltd. Expenditure incurred by National Gas
Australia Pty Ltd has resulted in National Gas Australia Pty Ltd earning an
aggregate 30% interest in each of NT/P62, NT/P63, NT/P64, NT/P65, NT/P71 and
NT/P72, (National Gas Consortium), of which 9% was earned from Nations.

The Company entered into a new agreement on February 17, 2009 with Mr. Albers to
secure his services on a part-time basis for a new 4-year period, with a
commencement date effective from January 1, 2008 ending December 31, 2011. As
the Company's cash resources were limited, the board has again agreed to
remunerate Mr. Albers by issuing common stock in lieu of cash payments.
Specifically, the Company issued 2,400,000 shares of Common Stock to Mr. Albers
on March 26, 2009 for his services in relation to the period from January 1,
2008 to December 31, 2008. A further 2,200,000 shares of Common Stock will be
issued to him for his services for the period from January 1, 2009 to December
31, 2009 A further 2,000,000 shares of Common Stock will be issued to him for
his services for the period from January 1, 2010 to December 31, 2010. A further
1800,000 shares of Common Stock will be issued to him for his services for the
period from January 1, 2011 to December 31, 2012.

Note 4: Current Liabilities

At March 31, 2009 the accounts payable balance includes $27,500 for remuneration
due to Mr Albers for his services.

Note 5:  Issued Shares

At March 31, 2009, 550,000 shares included in issued and outstanding shares of
44,000,531 disclosed in the balance sheet and used for the earnings per common
share calculation were reserved but not yet issued. These shares will be used to
compensate Mr Albers and will be issued in the quarter ending March 31 2010 (See
Note 4).

                                       7

Note 6:  Comprehensive Income

Comprehensive income is the change in equity during a period from transactions
and other events from non-owner sources. The Company is required to classify
items of other comprehensive income in financial statement to display the
accumulated balance of other comprehensive income separately in the equity
section of the Consolidated Balance Sheet.

The functional currency of Australian Oil & Gas Corporation's Australian
subsidiaries is the Australian dollar. The comprehensive income of $300,000
disclosed in the Consolidated Balance Sheet is the accumulation of all currency
exchange differences arising from translating the Australian subsidiaries'
financial statements from functional currency to presentation from the
acquisition date of these Australian subsidiaries to the current balance date.

Note 7: Subsequent Events

On April 3, 2009 the company's Australian subsidiary, Alpha Oil and Natural Gas
Pty Ltd sold a 35% interest in NT/P73 to Gascorp Australia Pty Ltd (Gascorp) for
$249,935 (AUD$350,000) on the following basis:

(1)      A put option granted by Alpha to enable Gascorp to sell the interest
         back to Alpha within 3 years for: (i) an amount equivalent to
         AUD$350,000 plus interest at l% per month; and (ii) a royalty of l%
         with respect to the 30% permit interest.

(2)      An option from Alpha to Gascorp to enable Gascorp to increase its
         interest in NT/P73 by l5% to 50% by expending a further $196,377
         (AUD$275,000) (on behalf of Alpha's remaining 65%) in relation to
         exploration in NT/P73.

Gascorp Australia Pty Ltd is an affiliate company of Mr. EG Albers.
The NT/P73 permit has been offered for farmout, with a number of international
companies considering the acreage.





                                       8


Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.

Forward-looking statements

References in this report to "the Company", "AOGC", "we", "us", or "our" are
intended to refer to Australian Oil & Gas Corporation. This quarterly report
contains certain statements that may be deemed forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the United Stated Securities Exchange Act of 1934, as amended.
Readers of this quarterly report are cautioned that such forward-looking
statements are not guarantees of future performance and that actual results,
developments and business decisions may differ from those envisaged by such
forward-looking statements.

All statements, other than statements of historical facts, so included in this
quarterly report that address activities, events or developments that the
Company intends, expects, projects, believes or anticipates will or may occur in
the future, including, without limitation: statements regarding our business
strategy, plans and objectives and statements expressing beliefs and
expectations regarding our ability to successfully raise the additional capital
necessary to meet our obligations, our ability to secure the permits necessary
to facilitate anticipated seismic and drilling activities and our ability to
attract additional working interest owners to participate in the exploration for
and development of oil and gas resources, are forward-looking statements within
the meaning of the Act. These forward-looking statements are and will be based
on management's then-current views and assumptions regarding future events.

Plan of Operation
-----------------

General.    Australian Oil & Gas Corporation is an independent energy company
focused on the acquisition of petroleum exploration permits in the offshore
areas adjacent to Australia and exploration for oil and natural gas resources
within the area of those permits. We rely on the considerable experience in the
oil and gas industry of our President, Mr. E. Geoffrey Albers, together with our
consultants, in order to identify and conduct initial analyses of permits in
which we may acquire an interest.

Strategy.    We devote essentially all of our resources to the identification of
large-tract exploration permits in their early stages of exploration. We attempt
to focus on areas where we consider that there is the potential for a high
impact outcome for the Company, in the event of exploration success. We plan to
advance the prospectivity of these acreages largely through the application of
geological and geophysical expertise and through the provision of new 2D and 3D
seismic surveys. We seek to keep our capital outlays and overheads at a minimum
level by farming out exploration costs and by retaining selected consultants,
contractors and service companies. We generally use proven technologies in
evaluating the prospectivity of our oil and gas properties. We expect to invest
in projects at different percentage levels of participation, including up to
100% ownership. We plan to maintain as high a participation as can be prudently
managed in the early stages of a project. We focus on areas considered to have
speculative near term potential for oil discovery or medium term potential for
gas discovery. An important part of our strategy is to select prospective
acreage which, at the seismic or drilling stage, can be farmed out and/or
developed in conjunction with other, preferably larger more financially robust
petroleum industry participants, so as to reduce exploration risk (which is
high) and minimize our financial outlay requirements. We attempt to do so,
wherever possible, through promoted transactions. Our overall intention is to
provide maximum leverage for shareholders at minimal cost, in return for the
extremely high risk activities that we undertake. The funding of our exploration
programs is an on-going challenge.

                                       9

Since August 2003, when the Company began operations, we have not conducted any
business which generates revenue from the sale of hydrocarbons. Accordingly, we
have no results of such operations to report. We are actively pursuing our long
term strategy of maintaining our oil and gas exploration projects which, in the
long-term and given success, may have the future potential to generate
substantial revenue.

Permitting.   It should be noted that Australian offshore petroleum permits are
initially granted for a term of 6 years, pursuant to the Offshore Petroleum Act,
2006 (Commonwealth). Provided all exploration commitments are met, petroleum
exploration permits may be renewed for two consecutive 5-year terms, with
relinquishment of 50% of the area of a permit at the end of the first 6-year
term, and again at the end of the second 5-year permit term. Any Retention Lease
or Production License is excluded from the calculation of the area to be
relinquished. Permits therefore, have a potential 16-year life, subject to these
requirements and to the fulfillment of exploration commitments.

Management.   The Company relies upon its Chairman and President, who also holds
the position of Chief Executive Officer and Chief Financial Officer, Mr. E
Geoffrey Albers, to manage the Company's operations and to identify and acquire
interests in oil and gas prospects. The Company previously entered into an
agreement with Mr. Albers to secure his services on a part-time basis for a
3-year period, with a commencement date effective from January 1, 2005. As the
Company's cash resources are limited, the board agreed to remunerate Mr. Albers
by issuing common stock in lieu of cash payments. On February 17, 2009 the
Company signed a new four-year contract with Mr. Albers ("the Director") with
respect to the continuation of his services for a further period effective from
January 1, 2008 to 31 December 2011, on terms which include the following:

(i)  by the Company issuing to the Director or, at the election of the Director,
     to the Trustee of the Fund, Common Stock in lieu of cash payments.
     Specifically, during the first quarter of 2009, the Company will issue
     2,400,000 shares of Common Stock for his services in relation to the period
     from 1 January 2008 to 31 December 2008. These shares were issued March,
     26, 2009.

(ii) by the Company issuing to the Director or, at the election of the Director,
     to the Trustee of the Fund, Common Stock in lieu of cash payments.
     Specifically, during the fourth quarter of 2009, the Company will issue
     2,200,000 shares of Common Stock for his services in relation to the period
     from 1 January 2009 to 31 December 2009.

                                       10

(iii) by the Company issuing to the Director or, at the election of the
     Director, to the Trustee of the Fund, Common Stock in lieu of cash
     payments. Specifically, during each the fourth quarter of 2010, the Company
     will issue 2,000,000 shares of Common Stock for his services in relation to
     the period from 1 January 2010 to 31 December 2010.

(iv) by the Company issuing to the Director or, at the election of the Director,
     to the Trustee of the Fund, Common Stock in lieu of cash payments.
     Specifically, during the fourth quarter of 2011, the Company will issue
     1,800,000 shares of Common Stock for his services in relation to the period
     from 1 January 2011 to 31 December 2011.


Working Capital.   Funding As an exploration stage enterprise, the Company has
and continues to rely on capital infusions through the advances of Great
Missenden Holdings Pty Ltd. The Company has accepted advances and in the future
anticipates that it will draw down further advances to enable it to meet its
administrative costs and expenditure requirements in developing its portfolio of
oil and gas interests.

Funding for Exploration Programs

When the Company requires further significant funds for its exploration
programs, then it is the Company's intention that the additional funds would be
raised in a manner deemed most expedient by the Board of Directors at the time,
taking into account budgets, share market conditions and the interest of
industry in co-participation in the Company's programs.

It is the Company's intention to meet its obligations by either partial sale of
the Company's interests or farm out, the latter course of action being a
fundamental part of the Company's overall strategy. Should funds be required for
appraisal or development purposes the Company would, in addition, look to
project loan finance.

Should these methods considered not to be viable, or in the best interests of
stockholders, then it is the Company's plan that they could be raised by any one
or a combination of the following manners: stock placements, pro-rata issue to
stockholders, and/or an issue of stock to eligible parties.

Following implementation of our acquisition strategy, we now hold interests in
14 Petroleum Exploration Permits granted by the Commonwealth of Australia. With
one exception, they are held in joint venture with other parties. We are now
intent on exploring, farming-out and generally up-grading these interests. A
summary of the permits and the current activities in each permit is set out
below.


                                       11




VULCAN SUB-BASIN INTERESTS, TERRITORY OF ASHMORE AND CARTIER ISLANDS, AUSTRALIA
(AC/P33, AC/P35 and AC/P39)

Geologically, AC/P33, AC/P35 and AC/P39 are located on the eastern margin of the
Vulcan Sub-basin, a broad, deep and proven hydrocarbon-generative basin, one of
a number of proven petroliferous sub-basins which together comprise the North
West Shelf hydrocarbon province of Australia. The permits are within the
Territory of Ashmore and Cartier Islands, an Australian offshore territory.

The Territory of the Ashmore and Cartier Islands ("the Territory") was ceded
from Britain and accepted by the Commonwealth of Australia ("Commonwealth") in
1933. The responsibility for the administration of the Territory was transferred
from the Northern Territory of Australia ("Northern Territory") to the
Commonwealth when a level of self-government was instituted in the Northern
Territory in 1978.

Petroleum extraction activities in the area within the Territory are
administered on behalf of the Commonwealth by the Northern Territory Department
of Mines and Energy through the Designated Authority protocol operating pursuant
to the Offshore Petroleum and Greenhouse Storage Act 2006 (Commonwealth).

Commonwealth laws, laws of the Northern Territory and Ordinances made by the
Governor-General make up the body of law generally applicable in the Territory.

The Territory comprises West, Middle and East Islands of Ashmore Reef, Cartier
Island and the territorial sea generated by those islands. The islands are
uninhabited, small, low and composed of coral and sand, with some grass cover.

The Territory is located on the outer edge of the continental shelf in the
Indian Ocean approximately 320 km off Australia's north-west coast and 144
kilometres south of the Indonesian Island of Roti. The Jabiru and Challis oil
fields are located within the Territory, as are numerous other oil and gas
accumulations and occurrences.

We acquired our initial 20% interest in the Vulcan Sub-basin permits as a result
of the acquisition of Alpha Oil & Natural Gas Pty Ltd ("Alpha") in 2006.

On May 15, 2006 Alpha agreed to farmout 5% of its 20% interest in each of the
Vulcan Sub-basin Permits to National Gas Australia Pty Ltd ("NGA") (leaving
Alpha with a 15% interest) in return for the acquisition and funding of Alpha's
20% share of the new Oliver 3D seismic survey of approximately 124 km(2) and the
funding of the cost of reprocessing of approximately 2,800 km(2) of the existing
Onnia 3D Seismic Survey data, relevant to all of AC/P33, AC/P35 and AC/P39. The
cost of the Company's share of the Oliver survey and the Onnia reprocessing has
thus been met entirely by NGA.

We have subsequently farmed out half of our interest in AC/P33 to Stuart
Petroleum Limited ("Stuart") (see Oliver Joint Venture below), leaving Alpha
with a 7.5% interest.


                                       12

Our wholly owned subsidiary, Alpha, has established a wholly owned subsidiary
named Vulcan Australia Pty Ltd ("Vulcan") and has transferred its interests in
each of its Timor Sea permits, AC/P33, AC/P35 and AC/P39 to Vulcan. NGA has
transferred its interests to its wholly owned subsidiary Petrocorp Australia Pty
Ltd.

In addition, the joint venture operating agreement, which previously governed
joint venture operations in all three of the permits, has been replaced by new
separate joint venture agreements for each permit. The new joint ventures are
known as Oliver Joint Venture (AC/P33), Vulcan Joint Venture (AC/P35) and Nome
Joint Venture (AC/P39).

Oliver Joint Venture (AC/P33)

Our wholly owned subsidiary, Vulcan, following farmout of drilling and
development commitments to Stuart, (see below) now holds a 7.5% interest in the
Oliver Joint Venture permit, AC/P33, in joint venture with Stuart (50%) now the
designated operator, and our joint venture affiliates; Petrocorp Australia Pty
Ltd ("Petrocorp") (12.5%), Natural Gas Corporation Pty Ltd (NGC) (15%) and
Auralandia N.L. (Auralandia) (15%).

AC/P33 (granted July 6, 2004) includes the undeveloped Oliver oil and gas
accumulation, drilled by the now plugged and abandoned Oliver-1 well. AC/P33
comprises five graticular blocks, totalling approximately 400 km(2) (98,800
acres). During the first three years of the initial 6-year term of permit
AC/P33, the joint venture participants obtained a range of existing reports and
open file seismic data and have mapped, interpreted and revised analyses and
concepts for the area. The joint venture has carried out enhancement of existing
seismic data around the Oliver feature and examined various techniques for
potential to provide direct hydrocarbon indicators. As a result of the farmout
to NGA, the joint venture has acquired 124 km(2) (acres) of new high quality
enhanced parameter 3D seismic survey, known as the Oliver 3D Seismic Survey. The
survey was conducted over the Oliver feature and part of its extension to the
east. Processing of the new Oliver Seismic Survey and reprocessing of part of
the immediately adjacent Onnia 3D Seismic Survey in the vicinity of the Oliver-1
well, in preparation for the proposed Oliver 2 exploration/appraisal well, has
been concluded. The joint venture has elected to enter the second three years of
the initial permit and the farminee, Stuart, plans to drill one exploration well
prior to the end of 2009, and to perform further interpretational work at its
cost. Active geological and geophysical evaluation of the permit continues.

Stuart's earn-in obligations will be satisfied by sole funding the drilling of
an appraisal well on the Oliver feature, completion of engineering studies up to
Final Investment Decision for development of an oilfield and sole funding the
first $25 million of development expenditure. The first phase of development of
the Oliver field - drilling the appraisal well, Oliver 2, and completing
engineering studies - is expected cost $60 million and to be complete late in
2010.

The Oliver field, containing a column of oil, gas and condensate, was discovered
by a BHP Petroleum operated consortium in 1988. The Oliver 1 well was drilled in
305 metres of water to a depth of 3,500 metres. The well encountered the column
in the Plover Formation between 2,927 metres and 3,097 metres.

Stuart's interpretation of the recently acquired Oliver 3D seismic data over the
Oliver field resulted in Stuart's estimated potential recoverable liquids in the
range of 9.9 million barrels to 33 million barrels of oil and condensate with a
mean joint venture volume of 19.3 million barrels. According to Stuart, these
estimates have been independently reviewed and confirmed. They are not
independently verified reserves, but are estimates only provided to the joint
venture participants for preliminary planning and feasibility purposes.


                                       13

Studies to identify economic development alternatives and to determine viability
have been commenced by Stuart and are expected to be followed by the Oliver 2
appraisal well to confirm the size of the field. The semi-submersible drilling
rig, Songa Venus, has been contracted by Stuart to drill this well at Stuart's
cost in mid-2009. In the event of a successful outcome, further economic
viability and development studies will then determine whether and how to best
develop the field.

Equity participants in permit AC/P33 presently are:

                                                          %
Stuart Petroleum Limited (Operator)                    50.0
Natural Gas Corporation Pty Ltd                        15.0
Auralandia NL                                          15.0
Petrocorp Australia Pty Ltd                            12.5
Vulcan Australia Pty Ltd (AOGC subsidiary)              7.5

The Company is considering how it might meet future funding requirements of its
subsidiary Vulcan, with respect to funding of any Oliver development.
Discussions amongst the non-Stuart joint venture participants has focused on the
concept of each of the participants, other than the operator Stuart and other
than Auralandia, selling their interest in each of the Vulcan Sub-basin permits
to Auralandia or another jointly sponsored company in return for an appropriate
pro rate issue of shares. Auralandia has signified that it is open to proposals
which would see it as the corporate vehicle for unifying 50% of the interests in
this manner. The Company is investigating this concept and plans to participate,
pending further investigations and finalization in an appropriate commercial
arrangement. Capital would thus be required by the entity for further appraisal
and development drilling and development of Oliver following satisfaction of the
Stuart farmin terms, but would relieve the Company of any direct cost commitment
to any of the Vulcan Sub-basin permits (AC/P33, AC/P35 and AC/P39).

Vulcan Joint Venture (AC/P35)

AC/P35 (granted October 18, 2005) is located immediately to the north of AC/P33.
It comprises 46 graticular blocks, totalling approximately 3,410 km(2) (842,645
acres). There have been five wells drilled in the area, with two having oil and
gas indications, all of which were plugged and abandoned. During the first three
years of the initial 6-year term of the AC/P35 permit, we have obtained a range
of pertinent existing reports and open file seismic data. We have applied for a
variation and suspension and extension of the permit for a period of twelve
months. In the third permit year, we presently plan to shoot up to 250 km(2) of
new 3D seismic survey. Should we so decide, we can elect to enter the second
stage of three permit years of the initial permit term and, if warranted, drill
one exploration well and perform further interpretational work. Geological
evaluation of the permit is continuing. 1,750 km(2) of the previously acquired
proprietary 3D seismic over AC/P35 known as the Onnia 3D Seismic Survey has been
reprocessed. We are assessing the need for and possible locations of a further
2D seismic survey prior to acquiring the 250 kms(2) 3D seismic program. The
joint venture is considering whether it will acquire approximately 250 line
kilometres of 2D seismic data over the Fairfax lead.


                                       14

The participants in the Vulcan Joint Venture are:

                                                         %
Auralandia NL (Operator)                              30.0
Natural Gas Corporation Pty Ltd                       30.0
Petrocorp Australia Pty Ltd                           25.0
Vulcan Australia Pty Ltd                              15.0


Nome Joint Venture (AC/P39)

AC/P39 (granted April 7, 2006) is located 600 km west of Darwin, immediately to
the east of AC/P33 and AC/P35. It comprises 11 graticular blocks, totalling
approximately 920 km(2) (2,273 acres). AC/P39 lies within 100 km of existing
petroleum production facilities and along the eastern elevated flank of the
Vulcan Sub-basin. There have been five wells drilled in the area, with two
having oil and gas indications. In the first three years of the initial 6-year
term of the AC/P39 permit, we have obtained a range of existing reports and open
file seismic data. We requested a 12 month suspension and extension of Year 2 in
order to complete the reprocessing of 920 km(2) Onnia 3D seismic survey within
the permit. The re-processing has now been completed, but was delayed because of
the manpower constraints of the contractor, PGS. In the third permit year,
subject to maturing the current leads to drillable prospects, we presently plan
to drill one exploration well. Geological evaluation of the permit is
continuing, including the assessment of risk as to whether any leads are of
sufficient quality to warrant the risk and cost of drilling and the likelihood
of a farminee being prepared to meet the cost of such a well in the current
depressed economic climate.

The participants in the Nome Joint Venture are:

                                                         %
Auralandia NL (Operator)                              30.0
Natural Gas Corporation Pty Ltd                       30.0
Petrocorp Australia Pty Ltd                           25.0
Vulcan Australia Pty Ltd                              15.0


                                       15




BROWSE BASIN INTERESTS, OFFSHORE FROM WESTERN AUSTRALIA
 - WA-332-P, WA-333-P and WA-342-P

The Browse Basin region is a major proven hydrocarbon area and it forms a part
of the extensive series of continental margin sedimentary basins that, together,
comprise the North West Shelf hydrocarbon province of Australia. The Browse
Basin has been host to a series of major gas, gas condensate and oil discoveries
which began with the 1971 discovery at Scott Reef-1. The Browse Basin is
currently the focus for two proposals to establish new LNG export facilities;
one by Woodside Energy Ltd in relation to the Torosa/Brecknock/Calliance complex
and the other by Inpex Corporation in relation to the Ichthys complex. Two of
the Browse Joint Venture permits are presently lightly explored. There is one
well on the boundary of WA-332-P (Prudhoe-1), one well in WA-333-P (Rob Roy-1),
and a total of fourteen wells in WA-342-P, mostly associated with the
undeveloped Cornea oil and gas accumulation.

On April 12, 2006, we completed the acquisition of Alpha Oil & Natural Gas Pty
Ltd ("Alpha"), a transaction entered into on July 1, 2004. The acquisition of
Alpha was made in order to acquire a 20% interest in the Browse Joint Venture,
being permits, WA-332-P, WA-333-P, WA-341-P and WA-342-P. Following signing of
this transaction, but prior to the agreement between being finalized, Alpha
(with the approval of AOGC) sold its 20% interest in WA-341-P to a third party
for an amount in excess of book value. The settlement funds received by Alpha
were incorporated in funds available to AOGC, through this wholly owned
subsidiary, following completion of the Alpha purchase.

The now remaining three permits within the Browse Basin, WA-332-P, WA-333-P and
WA-342-P, are contiguous and are located offshore in the eastern Browse Basin.
They cover a total area of 9,460 km(2) (2,336,620 acres).

Our wholly owned subsidiary, Alpha, together with its joint venturers, in 2008
entered into a farmout agreement with respect to WA-332-P, WA-333-P and WA-342-P
("Permits") with Gascorp Australia Pty Ltd ("Gascorp") whereby Gascorp agreed to
earn a 15% interest in each of the three Permits in return for Gascorp expending
$1,120,000 in acquiring approximately 490 line kilometres of new 2D seismic data
in the Permits and in acquiring a drill site survey in order to determine a
specific location to test the Braveheart prospect. The surveys provided coverage
of leads within WA-332-P as well as assisting in the determination of the
location of the Braveheart 1 well. As a result of this farmout, Alpha's interest
in each of the three permits reduced from 20% to 17%.

Browse Joint Venture (Braveheart Joint Venture) - WA-332-P and WA-333-P

In the first three year term of the Permits, the Browse Joint Venture obtained
available open file reports and basic 2D and 3D seismic data acquired by the
earlier efforts of previous explorers. The pre-existing 2D seismic data set has
been integrated with the acquisition and processing of the Braveheart 2D seismic
survey. The Browse Joint Venture previously acquired the Braveheart seismic
survey of approximately 1,949 line km of new 2D seismic survey over these Browse
Joint venture permits. This has been infilled with the further 490 kms of 2D
seismic. The Browse Joint Venture has elected to enter a second three year
permit term in which it presently is planning for the drilling of Braveheart 1
in WA-333-P.


                                       16

The Browse Joint Venture, in March 2008, applied for an 18-months suspension and
extension of Year 5 of permit WA-332-P in order to acquire further new infill 2D
seismic survey over potential leads in WA-332-P and to secure a drilling vessel.
If granted, Year 5 of WA-332-P will end September 30, 2009.

In March 2008, the Browse Joint Venture also applied for a 12-month suspension
and extension of Year 5 of the WA-333-P permit in order to allow additional time
for the drilling of the Braveheart-1 well in WA-333-P. The Joint Venture has
entered into a contract with a drilling vessel management company, as a result
of which a well is expected to be drilled on the Braveheart feature in early
2010. If granted, Year-5 of WA-333-P will end on March 31, 2010. Further
extensions may be necessary.

The participants in each of the WA-332-P and WA-333-P permits have formed new
100% owned subsidiary companies and have transferred their respective interests
to such wholly owned subsidiaries. Alpha incorporated Braveheart Oil & Gas Pty
Ltd as a wholly owned subsidiary to which it has assigned its residual 17%
interest in each of these Permits. The Joint Venture has also adopted the new
name of the "Braveheart Joint Venture".

Participants in the Braveheart Joint Venture presently are:

Braveheart Resources Pty Ltd (subsidiary of Exoil Limited) (Operator)    29.75%
Braveheart Petroleum Pty Ltd (subsidiary of Batavia Oil & Gas Pty Ltd)   29.75%
Browse Petroleum Pty Ltd (subsidiary of Gascorp Australia Pty Ltd)       15.00%
Braveheart Oil & Gas Pty Ltd (subsidiary of Alpha)                       17.00%
Braveheart Energy Pty Ltd (subsidiary of Goldsborough Limited)            8.50%

The participants in the Joint Venture have contracted to engage the services of
Australian Drilling Associates Pty Ltd to provide project management services to
support the conduct of drilling operations and has gained access to one drilling
slot in a group sponsored multi-well program utilising the semi-submersible
drilling rig, the Songa Venus. The drilling slot is to be used for the drilling
of the Braveheart 1 well, anticipated in early 2010.

The Braveheart prospect is now drill-ready, subject to completion of detailed
well design and obtaining of all governmental approvals. The Braveheart prospect
is a postulated strategraphic trap covering an area of more than 300 kms(2),
with large resource potential. The feature was delineated through AVO analysis
and is in a water depth of about 125m, with the target at 2200m.

While each of the two permits of the Browse Joint Venture have been offered for
farmout, alternatively, the participants are considering how they might meet the
funding requirements for the drilling of a well or wells, should these farmout
efforts not be successful. Discussions amongst the joint venture participants
have advanced the concept of the formation of a special purpose Australian
company to acquire the permit interests in return for a pro rata issue of shares
to each of the Braveheart Joint Venture participants. The concept is for such a
special purpose company to seek public equity funding in Australia in order to
meet the significant cost of any well or wells to be drilled in each of the
Browse permits


                                       17

Cornea Joint Venture (formerly part of the Browse Joint Venture)

The Cornea Joint Venture comprises the interests held in WA-342-P, which is
adjacent to WA-332-P and WA-333-P.

On October 22, 2007, the Browse Joint Venture lodged a request for a variation
of the permit WA-342-P so that instead of drilling a well in Year-5 the permit
would require geotechnical studies, while Year-6 of the permit would require
reprocessing 1000 kms(2) of the existing 3D seismic data set. If such variation
of the permit is granted, then Year-6 of the permit would commence on November
28, 2009.

The joint venture continues to carry out extensive studies as to prospectivity
of the known Cornea gas/oil accumulation where as much as 92 million barrels of
oil may be recoverable, if our geological concepts and assumptions are correct.
However, the challenges at Cornea include a difficult reservoir with difficult
to model production characteristics (although there are analogues in production
in the region at Stag and Wandoo) and the long, narrow shape of the field.
Because the reservoir is relatively shallow, in the order of 800m, drilling is
correspondingly cheaper.

Cornea represents an opportunity to invest in an appraisal drilling campaign
with the possibility of early development, if the geological assumptions are
correct and if initial drilling objectives are realised. The plan is to drill a
horizontal Cornea exploration/appraisal well in the predicted best sands and
conduct a well designed production test to quantify flow rates and define oil
and gas contacts.

Conditional on a positive outcome, an appraisal and field development strategy
for Cornea would be prepared. An initial successful appraisal well would also
provide a focus for the applicability of various methods for funding a
development, including subsequent capital raising and/or joint development (part
sale or farmout).

Participants in the Cornea Joint Venture are:

Hawkestone Oil Pty Ltd ((subsidiary of Exoil Limited) (Operator)       29.75%
Batavia Oil & Gas Pty Ltd                                              29.75%
Browse Petroleum Pty Ltd(subsidiary of Gascorp Australia Pty Ltd)      15.00%
Alpha Oil & Natural Gas Pty Ltd                                        17.00%
Goldsborough Energy Pty Ltd                                             8.50%

The participants in the Cornea Joint Venture plan to engage the services of
Australian Drilling Associates Pty Ltd to provide project management services to
support the conduct of drilling operations within the permit and will negotiate
to gain access to one drilling slot in a group sponsored multi-well program
utilising the semi-submersible drilling rig, the Songa Venus. The drilling slot
is for the proposed drilling of a horizontal appraisal well into the postulated
Cornea oil rim, anticipated in early 2010.


                                       18

While the Cornea Joint Venture permit, WA-342-P, has been offered for farmout,
alternatively, the participants are considering how they might meet the funding
requirements for the drilling of a horizontal well or wells on the Cornea
feature, should these farmout efforts not be successful. Discussions amongst the
joint venture participants have advanced the concept of the formation of a
special purpose Australian company to acquire the Cornea interests in return for
a pro rata issue of shares to each of the Cornea Joint Venture participants. The
concept is for such a special purpose company to seek public equity funding in
Australia in order to meet the significant cost of any well or wells to be
drilled in the permit.

BONAPARTE  BASIN  INTERESTS,  OFFSHORE FROM THE NORTHERN  TERRITORY OF AUSTRALIA
- NT/P62,  NT/P63,  NT/P64, NT/P65, NT/P71 and NT/P72

The Timor Sea covers a huge area underlain by sedimentary basins with potential
for new hydrocarbon discoveries. The region has a long history of exploration
activity and discovery and has now become the focus for domestic and
international petroleum exploration and development activities. There have been
numerous oil, gas/condensate and gas discoveries to the north west in the region
of the permits, including the Laminaria, Corallina and Bayu-Undan fields. The
giant gas fields of Greater Sunrise, Evans Shoal, Caldita and Barossa are to the
north and east of the permits. Recent Plover Formation discoveries have been
made in the Heron-2 well and the Blackwood-1 well, in permit NT/P68 immediately
north of NT/P63 and immediately south of NT/P65.

The Timor Sea is a major emerging petroleum province, with a developing emphasis
in gas processing for the export market. Discoveries made over the past few
years are expected to lead to the area providing substantial gas production and
revenue, through value-added gas projects covering a range of gas to liquids
processes and technologies.

National Gas Consortium - NT/P62, NT/P63, NT/P64, NT/P65, NT/P71 and NT/P72

On April 12, 2006, we completed the acquisition of 100% of Nations Natural Gas
Pty Ltd (Nations). The acquisition of Nations was entered into on September 10,
2004 and made in order to acquire a 30% interest in the initial four permits of
the National Gas Consortium, being permits, NT/P62, NT/P63, NT/P64 and NT/P65
("Timor Sea Permits"), located in the Australian sector of the Timor Sea,
offshore from the Northern Territory.

Nations on June 15, 2006, agreed to farmout 6% of its 30% interest in each of
the Timor Sea Permits to NGA (leaving Nations with a net 24% interest) in return
for the acquisition and funding of Nations 30% share of the new Sunshine 2D
seismic survey (887 kms) and Kurrajong 2D seismic survey (3,291 km) which were
acquired in November 2006.

                                       19


Nations on June 16, 2008, agreed to a further farmout of a further 3% of its 24%
interest in each of the Timor Sea Permits to NGA (leaving Nations with a net 21%
interest) in return for further expenditure of AUD$1.6 million by NGA on Joint
Venture exploration costs. The cost of the Company's share of the Sunshine and
Kurrajong surveys has been met entirely by NGA.

On August 8, 2006, Nations, together with the other joint venturers in the
National Gas Consortium were granted petroleum exploration permits NT/P71 and
NT/P72 for an initial 6-year term. Permits NT/P71 and NT/P72, which cover a
total area of approximately 17,380 km(2) (4,294,772 acres), are located in the
Australian sector of the Timor Sea, and are held by the National Gas Consortium,
which holds the contiguous NT/P62, NT/P63 and NT/P64 permits to the immediate
west.

The National Gas Consortium now holds six permits aggregating approximately
32,255 km(2) (7,970,533 acres) namely, NT/P62, NT/P63, NT/P64, NT/P65, NT/ P71
and NT/P72, all within jurisdiction of Australia.

The participants in the National Gas Consortium are:

                                                         %
National Oil & Gas Pty Ltd (Operator)                 24.5
Australian Natural Gas Pty Ltd                        24.5
National Gas Australia Pty Ltd                        30.0
Nations Natural Gas Pty Ltd                           21.0

On November 16, 2007, the members of the National Gas Consortium applied for a
12-month extension of Year 4 of each of the permits NT/P62, NT/P63, NT/P64 and
NT/P65 in order to complete the interpretation of the new Sunshine and Kurrajong
2D seismic data sets, in conjunction with interpretation of pre-existing 1,349
line km Jacaranda 2D seismic data set and 1,377 line km Halimeda 2D seismic
survey data set, both of which have been reprocessed. If granted, then Year-4 of
each of these permits would end on December 31, 2008.

The Timor Sea permits have been offered for farmout, with a number of
international companies having considered parts of or the whole of the acreage.
In the meantime, the National Gas Consortium Joint Venture participants are
considering methods of meeting the funding requirements for the drilling of a
well or wells, should these farmout efforts not be successful. Discussions
amongst the joint venture participants have focused on the formation or
acquisition of a special purpose company to acquire the National Gas Consortium
Joint Venture permits interests in return for a pro rata issue of shares to each
of the joint venture participants. This special purpose public company would
then seek public equity funding in Australia in order to meet the significant
cost of any well or wells to be drilled in the permits.


                                       20




Crocodile Joint Venture - Eastern Bonaparte Basin - NT/P70

On October 10, 2005, the Australian Government granted petroleum exploration
permit NT/P70, for a 6-year term. The Company initially held a 100% interest in
the permit and now holds an 80% interest as the result of farmout (see below).

NT/P70 covers an area of 7,370 km(2) (1,821,200 acres) and is located in the
eastern Timor Sea, about 300 km north of Darwin, and 250 km northeast of the
proposed Darwin to Bayu-Undan gas pipeline. The Greater Sunrise, Evans Shoal,
Barossa and Caldita gas accumulations are located to the west and southwest of
the NT/P70 permit area.

AOGC agreed on June 15, 2006, to farmout 20% of its 100% interest in NT/P70 to
NGA in return for the acquisition and funding by NGA of the cost of a new 800
line km Crocodile 2D seismic survey, subsequently acquired in the NT/P70 permit.
Subsequently AOGC has agreed to transfer it's 80% interest to it's wholly owned
subsidiary Alpha Oil & Natural Gas Pty Ltd.

The equity participants in the NT/P70 Joint Venture are:

                                                         %
Alpha Oil & Natural Gas Pty Ltd (Operator)            80.0
National Gas Australia Pty Ltd                        20.0

The permit was designated as a "frontier area" by the Australian Government
attracting an exploration incentive which allows immediate uplift to 150% tax
deductibility on Australian Petroleum Resource Rent Tax ("PRRT") which is only
payable provided certain levels of return from subsequent production are
achieved.

We have obtained a range of pertinent existing reports and open file seismic
data and, together with the Crocodile 2D seismic data, have mapped, interpreted
and revised analyses and concepts for the area. We are presently assessing
whether to shoot 300 km(2) of 3D seismic survey. Should we so decide, we can
elect to enter the second three years of the initial permit term and drill one
exploration well and perform further interpretational work. There have been no
wells drilled in the permit.

The Warawi prospect and the Crocodile prospect have been the major focus of our
work in NT/P70.

The NT/P70 permit has been offered for farmout, with a number of international
companies having considered the acreage

Stillwater Joint Venture - NT/P73

On March 27, 2007, the Australian Government granted to our subsidiary, Alpha, a
petroleum exploration permit, NT/P73, for an initial 6-year term. NT/P73 is
located to the immediate south west of NT/P70 and covers an area of 6,815 km(2)
(1,683,300 acres). The Barossa and Caldita gas accumulations are located to the
west of the NT/P73 permit area.

                                       21

In the first three years of the initial 6-year term of the NT/P73 permit we plan
to obtain existing reports and open file seismic data and, with this data, to
map, interpret and revise analyses and concepts for the area. We are required to
acquire up to 2,000 line km of 2D in the third year of the permit. Should we so
decide, we can elect to enter the second three years of the initial permit term
and drill one exploration well and perform further interpretational work. There
have been no wells drilled in the permit area.

Our work to date has focused on the Stillwater feature of the NW corner of
NT/P73. We have recently reached agreement with ConocoPhillips with respect to
our right to approximately 200 kms(2) of 3D data acquired by ConocoPhillips in
the NW corner of our NT/P73, most of which covers the highly interesting
Stillwater feature, which sits en enchelon alongside the Caldita feature,
located in the adjacent permit held by ConocoPhillips and Santos. This data has
been expressed in 2D format, exceeding 2000 line kms, thus meeting our third
permit-year obligation.

In order to provide working capital for the AOGC group, on April 3, 2009 the
company's Australian subsidiary, Alpha Oil and Natural Gas Pty Ltd, sold a 35%
interest in NT/P73 to Gascorp Australia Pty Ltd (Gascorp) for $249,935
(AUD$350,000) on the following basis:

(1)  A put option granted by Alpha to enable Gascorp to sell the interest back
     to Alpha within 3 years for:
     (i)  an amount equivalent to AUD$350,000 plus interest at l% per month; and
     (ii) a royalty of l% with respect to the 30% permit interest.

(2)  An option from Alpha to Gascorp to enable Gascorp to increase its interest
     in NT/P73 by l5% to 50% by expending a further $196,377 (AUD$275,000) (on
     behalf of Alpha's remaining 65%) in relation to exploration in NT/P73.

Gascorp Australia Pty Ltd is an affiliate company of Mr. EG Albers.

The NT/P73 permit has been offered for farmout.


                                       22




Item 3.  Quantitative and Qualitative Disclosures about Market Risk.

We do not engage in transactions in derivative financial instruments or
derivative commodity instruments. As of March 31, 2009, our financial
instruments were not exposed to significant market risk due to interest rate
risk, foreign currency exchange risk, commodity price risk or equity price risk.

Item 4.  Controls and Procedures.

As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the
"Exchange Act"), we carried out an evaluation of the effectiveness of the design
and operation of our disclosure controls and procedures as of March 31, 2009.
This evaluation was carried out under the supervision and with the participation
of our President and Chief Financial Officer. Based upon that evaluation, our
President and Chief Financial Officer concluded that our disclosure controls and
procedures are effective as of such date.

As used herein, "disclosure controls and procedures" means controls and other
procedures of ours that are designed to ensure that information required to be
disclosed by us in the reports we file or submit under the Securities Exchange
Act is recorded, processed, summarized and reported, within the time periods
specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed by us in
the reports we file under the Securities Exchange Act is accumulated and
communicated to our management, including our President and Chief Financial
Officer, or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.

Internal Controls

Since the date of the evaluation described above, there were no significant
changes in our internal control or in other factors that could significantly
affect these controls, and there were no corrective actions with regard to
significant deficiencies and material weaknesses.

Management's Report on Internal Control over Financial Reporting

The management of Australian Oil and Gas Corporation ("the Company") is
responsible for (1) the preparation of the accompanying financial statements;
(2) establishing and maintaining internal controls over financial reporting; and
(3) the assessment of the effectiveness of internal control over financial
reporting. The Securities and Exchange Commission defines effective internal
control over financial reporting as a process designed under the supervision of
the company's principal executive officer and principal financial officer, and
implemented in conjunction with management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements in accordance with generally accepted
accounting principles.

                                       24

All internal control systems, no matter how well designed, have inherent
limitations and provide only reasonable assurance that the objectives of the
control system are met, Therefore, no evaluation of controls can provide
absolute assurance that all control issues and misstatements due to error or
fraud, if any, within the company have been detected. Additionally, any system
of controls is subject to risk that controls may become inadequate due to
changes in conditions or that compliance with policies or procedures mat
deteriorate. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because
changes in conditions or that compliance with the policies or procedures may
deteriorate.

As of March 31, 2009, management of the Company conducted as assessment of the
effectiveness of the company's internal control over financial reporting based
on criteria established in the framework in Internal Control - Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission. From this assessment, management has concluded that the company's
internal control over financial reporting was effective as of March 31, 2009.

This Quarterly Report does not include an attestation report of the Company's
registered public accounting firm regarding internal control over financial
reporting. Management's report was not subject to attestation by the Company's
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Company to provide only management's
report in this annual report.

                           Part 11. OTHER INFORMATION


Item 6.  Exhibits

List of Exhibits


31.1 Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
     Section 906 of the Sarbanes-Oxley Act of 2002.


                                       25





                                   SIGNATURES

Pursuant to the requirements of the Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.

                          AUSTRALIAN OIL & GAS CORPORATION

                                  By:/s/ E. Geoffrey Albers
                                      ---------------------
                                  E. Geoffrey Albers,
                                  Chief Executive Officer and
                                  Chief Financial Officer
                                                                    May 14, 2009




                                       27