Bass Oil Limited has acquired the Vanessa gas field from Beach Energy, marking its entry into gas production in Australia’s Cooper Basin. The company is raising $3.1 million to fund this acquisition alongside other growth initiatives.
- Acquisition of 100% interest in Vanessa gas field including infrastructure
- Potential for conventional and tight gas production after fracture stimulation
- Launch of $3.1 million non-renounceable entitlement offer at $0.032 per share
- Additional projects include Indonesian drilling and Kiwi field development
- Capital raise supports Bass’s strategy to become a mid-sized oil and gas producer
Strategic Acquisition Positions Bass as Gas Producer
Bass Oil Limited (ASX:BAS) has taken a significant step forward in its growth strategy by acquiring a 100% interest in the Vanessa gas field from Beach Energy. This acquisition includes a shut-in gas well, processing facilities, and a pipeline connecting to the Cooper Basin gas network, positioning Bass as a new entrant in Australia’s evolving gas market.
The Vanessa field, located within Bass’s wholly owned PEL 182 permit, offers both immediate and long-term upside. While the field contains remaining recoverable conventional gas, the company sees substantial potential in tight gas zones within the Toolachee and Patchawarra formations, which could be unlocked through fracture stimulation techniques.
Capital Raise to Fund Growth and Development
To finance the acquisition and other growth projects, Bass is launching a non-renounceable entitlement offer to raise up to $3.1 million at $0.032 per share, with attaching options exercisable at $0.05 through May 2028. The offer represents a 25.6% discount to recent trading prices and has strong backing from Bass’s directors and management.
Funds from the raise will not only recommission the Vanessa gas facilities but also support drilling the Bunian-6 well in Indonesia to boost oil production, advance the Kiwi field development FEED study, and undertake a Triassic gas potential study in the northern Cooper Basin. This diversified approach underscores Bass’s ambition to grow production and shareholder value sustainably.
Unlocking Deep Coal and Tight Gas Potential
Vanessa’s strategic location allows Bass to leverage existing infrastructure to test the commercial viability of deep coal gas resources without the immediate need for new drilling. A recent geomechanical study by SLB used the Vanessa well as a model, and the next phase will focus on fracture stimulation design to economically exploit these resources.
This approach could accelerate Bass’s timeline to prove commerciality and reduce development costs, potentially transforming Vanessa into a gas production hub for future projects in the region.
Broader Growth Initiatives Signal Ambition
Beyond Vanessa, Bass is actively advancing its Indonesian operations, aiming to triple oil production from the Bunian field through the upcoming Bunian-6 well. Meanwhile, the Kiwi field development is progressing towards a final investment decision, with Bass exploring funding options including potential equity farm-downs.
These initiatives, combined with the Triassic gas study, reflect a multi-pronged strategy to expand Bass’s footprint across conventional and unconventional resources in key basins.
Bottom Line?
Bass’s Vanessa acquisition and capital raise mark a pivotal move into gas production, but execution risks remain as fracture stimulation and commercial studies unfold.
Questions in the middle?
- Will fracture stimulation unlock the expected tight gas volumes at Vanessa?
- How will the market respond to the dilution from the $3.1 million rights issue?
- What are the timelines and funding strategies for advancing the Kiwi field development?