Bass Oil Faces Timing Risks on Vanessa Approval and Bunian 6 Drilling
Bass Oil reported steady quarterly oil production with a 20% increase in Indonesian output following a production enhancement program. The company is poised to enter the East Coast Gas Market pending regulatory approval for the Vanessa gas field acquisition.
- Quarterly oil sales of A$1.62 million with 20,905 barrels produced
- 20% production increase in Indonesian fields after enhancement program
- Regulatory approval imminent for Vanessa gas field acquisition
- Cooper Basin production stable despite rain-related sales delays
- R&D tax credit claim underway for deep coal gas commercialization
Steady Production Amid Operational Challenges
Bass Oil Limited has maintained a consistent production level in the September quarter, delivering 20,905 barrels of oil, averaging 227 barrels per day. While this represents a slight decline from the previous quarter, the company’s operations in both the Cooper Basin and Indonesian Tangai-Sukananti fields performed reliably. Notably, Cooper Basin oil sales were impacted by heavy rains that delayed trucking logistics, though production itself remained uninterrupted thanks to ample field storage capacity.
Indonesian Output Gains Momentum
In Indonesia, Bass Oil’s recent three-well production enhancement program has yielded a significant 20% boost in oil output from the Bunian and Tangai fields. This operational success positions the company well for the upcoming quarter, as the final well continues to stabilize production. Meanwhile, development plans for the Bunian 6 well are progressing, although drilling timing remains uncertain due to rig availability constraints.
Strategic Shift Toward Gas Production
A pivotal development for Bass Oil is the pending acquisition of the Vanessa gas field, which is expected to receive regulatory approval shortly. This acquisition, involving no upfront cash payment but assuming rehabilitation liabilities, includes critical infrastructure such as a gas processing facility and pipeline connection to the Cooper Basin network. The Vanessa field is set to be Bass Oil’s gateway into the East Coast Gas Market, marking a strategic pivot toward gas production and diversification.
Advancing Gas Commercialization Projects
Beyond Vanessa, Bass Oil is actively advancing its deep coal gas project within the PEL 182 permit, with a phase 2 study underway focusing on well and fracture stimulation design. The company is also exploring the Kiwi gas field development and identifying additional prospects to expand its gas portfolio. These initiatives underscore Bass Oil’s ambition to evolve into a mid-tier oil and gas producer with a balanced resource base.
Financial Position and Outlook
Financially, Bass Oil remains debt free with cash reserves of A$1.36 million, excluding restricted funds held for rehabilitation bonds. Quarterly oil sales totaled A$1.62 million, slightly down from the previous quarter, reflecting market price softness and operational factors. The company is also preparing to lodge a Research & Development tax credit claim related to its deep coal gas work, which could provide a meaningful cash rebate to support ongoing development efforts.
Bottom Line?
With Indonesian production surging and Vanessa acquisition on the horizon, Bass Oil is set to reshape its growth trajectory into gas markets.
Questions in the middle?
- When exactly will regulatory approval for the Vanessa gas field acquisition be finalized?
- How will Bass Oil finance the drilling of the Bunian 6 well amid rig availability challenges?
- What impact will the R&D tax credit claim have on Bass Oil’s near-term cash flow and project funding?
