Bass Oil’s September Output Rises 3% Amid Key Gas Field Acquisition

September Production Gains Amid Operational Challenges

Bass Oil Limited has reported a modest yet meaningful 3% increase in its average daily oil production for September, reaching 234 barrels of oil per day (bopd). This improvement was largely driven by a 20% production boost in its Indonesian operations following a targeted three-well enhancement program. Overall monthly production totaled 7,023 barrels, generating sales revenue of A$493,600 (US$325,875).

In the Cooper Basin, Bass’s 100% owned Worrior and Padulla oil fields produced 2,787 barrels, averaging 93 bopd. However, sales were temporarily disrupted by heavy rain in early September, limiting exports to 1,222 barrels and causing an inventory buildup. With roads reopened in early October, the company expects to normalize stock levels soon. The average oil price achieved in the Cooper Basin was a robust A$104.21 per barrel.

Strategic Gas Field Acquisition Nears Completion

A key highlight for Bass Oil is the imminent regulatory approval for its acquisition of the Vanessa gas field, which includes a processing facility and pipeline infrastructure connecting to the Cooper Basin gas network. This acquisition marks a strategic pivot towards gas production, enabling Bass to enter the east coast gas market with its first gas sales. The Vanessa field also offers significant upside potential through untested conventional and tight gas reserves, as well as a promising deep coal gas resource within the Permian sediment sequence.

Preparations are underway for the certification and recommissioning of the Vanessa well and associated facilities, positioning Bass to capitalize on emerging gas market opportunities. The acquisition aligns with the company’s broader strategy to commercialize deep coal gas resources, leveraging ongoing studies and partnerships with industry leaders such as SLB and Santos.

Advancing Resource Commercialization and Development Plans

Bass is progressing a phase 2 deep coal commercialisation study led by SLB, focusing on well design and fracture stimulation to unlock economic production. This effort complements the Santos-led Cooper Basin joint venture’s drilling program, which aims to validate advanced well technologies and multi-stage fracking techniques.

Additionally, Bass has initiated a Triassic gas study around its Kiwi gas field, identifying new prospects that could enhance the field’s development potential. The company is actively exploring funding options, including farm-downs, to advance this project.

In Indonesia, while production has increased, Bass faces delays in drilling the Bunian 6 development well due to rig availability constraints. The company is evaluating tenders for drilling services and will announce timelines once a rig is secured.

Corporate and Financial Initiatives

On the corporate front, Bass is preparing to lodge a Research & Development tax credit claim for FY24 related to its deep coal gas commercialization efforts. If successful, this claim could yield a substantial 43.5% cash rebate on qualifying expenditures, providing a financial boost to ongoing exploration and development activities.

Overall, Bass Oil’s September update reflects a company steadily enhancing production, strategically expanding into gas markets, and laying the groundwork for future resource commercialization. While operational challenges such as weather disruptions and rig availability persist, the company’s proactive approach and asset acquisitions position it well for growth in the evolving energy landscape.