In the proposed demo we will present a method for design of musical composition using the Audio Oracle (AO) - a machine improvisation method that constructs and produces variation from a music recording using a graph of repeated factors found in the recording. The compositional / improvisation use of AO involves controlling the rate of recombination, the length of common history (length of the repeated factors) and selection of regions in the AO where the machine operates. One of the challenges in working with AO is understanding the generative potential of different audio materials and marking and allocating regions in a recording where AO should operate to achieve the desired musical result. Recently we introduced a novel analysis method "on top" of the AO structure that captures aspects of order and complexity that we call Information Rate. This measure, belonging broadly to a field of study know as Musical Information Dynamics, is related to Bense formulation of aesthetics in terms of entropy and compression. In the demo we will briefly explain the theory behind Audio Oracle and Information Rate and demonstrate a process of designing a composition / structured improvisation based on analysis of the AO graph. In contrast to the usual live interaction method where both the audio input to the oracle and the improvisation are done "on the fly", in this presentation the audio analysis will be done prior to the presentation, while during the talk we will show the process of planning a composition and then do a live performance with the AO based on this design.