How Bass Oil’s Vanessa Gas Field Deal Could Transform Its Future
Bass Oil reported steady oil production and a significant cash reserve increase in the June quarter, while strategically acquiring the Vanessa gas field to pivot towards gas production.
- Steady oil production of 21,285 barrels in June quarter
- Cash reserves surged 79% to A$1.96 million
- Acquisition of Vanessa gas field at nil cash cost
- Non-renounceable rights issue raised $925,180 with 30% shareholder uptake
- Progress on deep coal gas commercialisation and Kiwi gas project
Steady Production Amid Market Softening
Bass Oil Limited (ASX, BAS) maintained consistent oil output during the June 2025 quarter, producing 21,285 barrels, a marginal increase from the previous quarter. The Cooper Basin fields, including Worrior and Padulla, experienced minor operational downtime but overall performed reliably, averaging 234 barrels of oil per day net to Bass. Meanwhile, Indonesian operations at Tangai-Sukananti saw a 7.4% production increase, reflecting improved well availability.
Despite steady volumes, sales revenue dipped 14.4% quarter-on-quarter to A$1.69 million, primarily due to a softer global oil price environment. Bass realised an average oil price of US$66.85 per barrel, down from US$74.04 in the prior quarter, though prices have since stabilised near US$70.
Strategic Shift, Vanessa Gas Field Acquisition
The acquisition also supports Bass’s broader ambitions to commercialise deep coal gas resources in the Cooper Basin. The Vanessa well penetrated the entire Permian sequence, offering promising conventional and tight gas potential. This complements ongoing studies led by SLB and aligns with the Santos-led Cooper Basin Joint Venture’s efforts to trial advanced drilling and fracking technologies.
Capital Raising and Financial Position
Bass strengthened its balance sheet with cash reserves rising 79% to A$1.96 million by quarter-end. This boost was supported by a non-renounceable rights issue that raised $925,180, representing over 30% uptake from existing shareholders. The rights issue included free attaching options, which have since been listed, and the company is actively seeking to place the remaining shortfall.
The company remains debt-free and has placed A$3.61 million in restricted cash to cover rehabilitation bonds, underscoring its prudent financial management. This solid cash position provides a foundation for advancing the Vanessa acquisition, Kiwi gas field development, and ongoing exploration activities.
Progress on Kiwi Gas and Indonesian Development
Bass continues to explore development options for the Kiwi gas field, including transportation and processing pathways, with funding strategies such as potential farm-downs under consideration. The company plans to reprocess seismic data to better define follow-up opportunities, leveraging funds from the recent capital raise.
In Indonesia, preparations are underway to drill the Bunian 6 development well, with materials expected on site by August and drilling anticipated in September. This well aims to build on the success of the prolific Bunian 3 well, supporting production growth in the South Sumatra Basin.
Outlook and Strategic Focus
Bass Oil’s quarterly report highlights a company in transition, balancing steady oil production with a clear strategic pivot towards gas. The Vanessa acquisition and deep coal gas commercialisation efforts represent key growth pillars, while the company’s strong cash position and shareholder support provide momentum. However, regulatory approvals, successful recommissioning of gas assets, and oil price volatility remain critical factors to watch as Bass aims to evolve into a mid-tier oil and gas producer.
Bottom Line?
Bass Oil’s gas ambitions are gaining traction, but execution risks and market dynamics will shape its next growth phase.
Questions in the middle?
- When will regulatory approvals for the Vanessa gas field acquisition be finalised?
- How quickly can Bass recommission Vanessa’s gas facilities to commence sales?
- What impact will fluctuating oil prices have on Bass’s revenue and project funding?
