Bass Oil Advances Kiwi Gas Project Despite Quarterly Revenue Dip
Bass Oil Limited reported a 27% drop in quarterly revenue amid natural production declines but highlighted promising developments in its Kiwi gas field project in the Cooper Basin.
- Quarterly revenue fell 27.3% to US$1.24 million
- Production declined to 22,872 barrels due to natural field decline and equipment failure
- Kiwi gas field test confirms a larger stratigraphic trap with strong economic potential
- Preparations underway for Bunian 6 well drilling in Indonesia
- Company remains debt-free with US$0.62 million cash reserves
Quarterly Performance Overview
Bass Oil Limited (ASX:BAS) released its quarterly report for the period ending 31 December 2024, revealing a 27.3% decline in oil sales revenue to US$1.24 million compared to the previous quarter. Production fell to 22,872 barrels, averaging 249 barrels of oil per day (bopd), primarily impacted by natural declines in Indonesian fields and a pump failure at the Bunian 5 well.
Despite the revenue dip, the Cooper Basin operations, including the 100% owned Worrior and Padulla oil fields, maintained steady production levels averaging 100 bopd. The company’s oil price realised averaged US$70.85 per barrel, down 8% quarter-on-quarter, reflecting broader market trends linked to Brent crude benchmarks.
Kiwi Gas Field: A Strategic Growth Catalyst
The standout development for Bass Oil this quarter was the successful completion and analysis of the Kiwi 1 Extended Production Test (EPT) in the Cooper Basin. Pressure data confirmed no measurable pressure decline during testing, indicating a larger-than-expected Triassic stratigraphic gas trap. Laboratory analysis revealed the gas to be liquids-rich with low inert content, enhancing its commercial value.
Managing Director Tino Guglielmo emphasised Kiwi’s importance, noting that the project exceeded expectations and is a key pillar for Bass’s growth strategy. The company is actively progressing towards a Final Investment Decision (FID), engaging with engineering firms for Front End Engineering Design (FEED) studies and negotiating commercial agreements for gas transportation and processing.
Indonesian Operations and Development Plans
In Indonesia, Bass holds a 55% interest in the Tangai-Sukananti KSO, where production decreased due to natural decline and equipment issues. The company is preparing to drill the Bunian 6 development well, with well pad construction complete and flowline installation underway. Drilling is contingent on rig availability, but this development is expected to bolster future production.
Financial Position and Outlook
Bass Oil remains debt-free with cash reserves of US$0.62 million at quarter-end, excluding restricted cash deposits for rehabilitation bonds. Capital expenditure increased to US$0.92 million, reflecting costs associated with the Kiwi project and Bunian 6 preparations. The company anticipates reduced capital outflows in the coming quarter and expects positive operating cash flows going forward.
While the short-term production and revenue declines present challenges, Bass Oil’s strategic focus on advancing the Kiwi gas field and expanding Indonesian development projects positions it for potential growth. The company’s commitment to leveraging its operational strengths and maintaining a strong balance sheet underpins its ambition to evolve into a mid-tier oil and gas producer.
Bottom Line?
Bass Oil’s near-term revenue pressures are tempered by promising gas field developments that could redefine its growth trajectory.
Questions in the middle?
- How soon can Bass Oil reach a Final Investment Decision on the Kiwi gas field?
- What are the expected production ramp-up timelines for the Bunian 6 well in Indonesia?
- Will Bass Oil consider capital raising to support its development projects if cash reserves remain tight?