Can Bass Overcome Execution Risks to Realize Its Deep Coal Gas Potential?
Bass Limited’s May 2025 AGM update highlights a strategic acquisition and capital raising to accelerate its emergence as a key Australian gas producer, focusing on Cooper Basin and Indonesian assets.
- Vanessa gas field acquisition enables East Coast gas market entry
- Planned A$2.62 million capital raising to fund growth initiatives
- Kiwi gas field progressing towards final investment decision in 2025
- Deep coal gas resource development advancing in PEL 182
- Bunian 6 well drilling to boost Indonesian oil production
Strategic Positioning in Australian Gas Market
Bass Limited, an emerging Australian oil and gas producer listed on the ASX, presented a comprehensive update at its May 2025 Annual General Meeting. The company emphasized its debt-free status and cashflow-positive operations, underpinned by a portfolio of assets in the Cooper Basin and Indonesia. Central to its growth strategy is the recent acquisition of the Vanessa gas field, which provides immediate access to production infrastructure and a pathway into the East Coast gas market.
This acquisition is a pivotal step for Bass, offering a low-cost, fast-track entry into a high-demand market. The Vanessa field’s existing well, processing equipment, and pipeline connection to the Cooper Basin network position Bass to accelerate gas sales and revenue generation, potentially reshaping its growth trajectory.
Capital Raising to Fuel Expansion
To support its ambitious plans, Bass announced a 1-for-3 non-renounceable entitlement offer priced at $0.032 per share, aiming to raise approximately A$2.62 million. The capital will be deployed across several key initiatives: recommissioning the Vanessa gas facility, drilling the Bunian 6 well in Indonesia to increase oil production from around 135 to 435 barrels per day (Bass share), advancing a Front-End Engineering Design (FEED) study for the Kiwi gas field, and progressing evaluation of the Triassic gas play in the Northern Cooper Basin.
The Bunian 6 well development is particularly noteworthy, as it promises a rapid payback within six months through enhanced oil sales, bolstering Bass’s cash flow and production base in Indonesia’s Sumatra Basin.
Unlocking Deep Coal Gas Potential
Bass is also advancing its deep coal gas resource play in PEL 182, which contains an estimated 21 trillion cubic feet of gas and 845 million barrels of condensate. Recent studies suggest this area could become a significant resource play comparable to other major Australian basins. The company is conducting a Phase 2 study to assess well design and economic viability, aiming to unlock this potentially transformative asset.
Progress on Kiwi Gas Field and Market Outlook
The Kiwi gas field, wholly owned by Bass, continues to demonstrate strong production results with high condensate yields. The company is progressing towards a final investment decision (FID) in 2025, supported by ongoing FEED studies and commercial negotiations. This project is expected to significantly enhance Bass’s reserves and production profile.
Overall, Bass’s portfolio is positioned for growth, with multiple high-impact assets in the Cooper Basin and Indonesia. The company’s strategy to build a profitable and balanced portfolio is underpinned by operational expertise and a clear pathway to value creation.
Bottom Line?
Bass’s strategic moves and capital raise set the stage for a potential re-rating, but execution risks and market response remain key watchpoints.
Questions in the middle?
- Will the capital raising fully fund Bass’s ambitious development plans without dilution concerns?
- How soon can Bass convert its deep coal gas resource in PEL 182 into commercial production?
- What are the prospects and timelines for securing farm-down partners or financing for the Kiwi gas field?