Bass Oil’s Vanessa Gas Deal Hinges on Acquisition and Production Restart

Strategic Gas Sales Agreement

Bass Oil Limited (ASX – BAS) has taken a significant step forward in its energy portfolio by signing a binding gas sales agreement with Origin Energy (ASX – ORG), one of Australia's leading gas and electricity retailers. The three-year contract, commencing in 2026, will see Bass supply up to 12.045 petajoules of gas from the Vanessa Gas Project located in South Australia's Cooper Basin.

This deal not only secures a reliable buyer for Bass's gas output but also underpins the full commercialisation of the Vanessa field, which the company is in the process of acquiring. The agreement is contingent on Bass completing the acquisition and successfully recommissioning the production facilities, marking a critical milestone in the company's operational roadmap.

Vanessa Field – From Acquisition to Production

The Vanessa Gas Project includes a production facility and a 5-kilometre pipeline connecting to the Cooper Basin transmission network. Originally drilled in 2007 and brought online in 2018, the field produced 1.1 billion cubic feet of gas over two years at a rate of 3.5 million standard cubic feet per day. Bass plans to leverage this infrastructure to restart production efficiently and cost-effectively.

Managing Director Tino Guglielmo highlighted the importance of this agreement as a gateway for Bass into the East Coast Gas Market, where demand and pricing are on the rise. He emphasized the company's low-cost structure as a competitive advantage in bringing Vanessa back online swiftly and profitably.

Growth Potential Beyond Vanessa

Beyond the immediate commercialisation of Vanessa, Bass sees the field as a strategic asset to unlock a potentially significant gas resource in the adjacent PEL 182 permit, which the company owns 100%. This area contains deep coal formations believed to hold substantial gas reserves, offering a longer-term growth avenue for Bass's gas production capabilities.

Investors were previously briefed on the potential of Vanessa and PEL 182 in the company's September quarterly report and investor presentation, underscoring the strategic vision behind this acquisition and sales agreement.

With the company currently debt-free and holding majority interests in multiple permits across Australia and Indonesia, this deal signals Bass's commitment to expanding its footprint in the energy sector, particularly in the increasingly important East Coast Gas Market.