Bass Oil Limited reported a 7.9% rise in quarterly oil sales revenue and a 7.4% increase in production, alongside a pivotal gas sales agreement with Origin Energy for the Vanessa gas field, pending regulatory approval.
- 7.9% increase in quarterly oil sales revenue to A$1.75 million
- 7.4% rise in production to 22,449 barrels for December quarter
- Binding three-year gas sales agreement signed with Origin Energy for Vanessa field
- Regulatory approval for Vanessa acquisition expected soon
- Continued progress on deep coal and Triassic gas commercialisation projects
Production Growth and Revenue Gains
Bass Oil Limited has reported a solid quarter with oil sales revenue climbing 7.9% to A$1.75 million and production increasing by 7.4% to 22,449 barrels for the December 2025 quarter. This growth was driven by steady performance in both its Australian Cooper Basin assets and Indonesian operations. The company’s average production rate rose to 244 barrels of oil per day, reflecting operational efficiencies and favourable conditions following a rain-impacted September quarter.
Within the Cooper Basin, the Worrior and Padulla oil fields maintained high operational uptime at 99%, although production from these fields saw a slight dip of 6% quarter-on-quarter. Meanwhile, Indonesian operations at the Tangai-Sukananti KSO delivered a 1.7% increase in production, supported by a recent three-well enhancement program that boosted field output by 23% over August levels.
Strategic Gas Market Entry with Vanessa Field
A major highlight for Bass Oil this quarter was the signing of a binding three-year gas sales agreement with Origin Energy for the Vanessa gas field, marking a significant step towards the company’s strategic ambition to enter the East Coast gas market. The agreement covers the sale of up to 12 petajoules of gas starting from the recommissioning of the Vanessa field, expected in the second half of 2026.
The Vanessa acquisition, which involves no upfront cash payment but includes Bass assuming future rehabilitation liabilities with vendor contributions, is pending regulatory approval. The field comes with existing infrastructure including a gas processing facility and a pipeline connecting to the Cooper Basin network, positioning Bass to quickly ramp up gas production and sales.
Advancing Gas Commercialisation and Exploration
Bass is also advancing its deep coal gas commercialisation efforts in the PEL 182 permit, leveraging the Vanessa well’s penetration of Permian sediments. Phase 2 of a study led by SLB will focus on optimising well and fracture stimulation design to unlock this significant resource. The company is closely monitoring the Santos-led Cooper Basin Joint Venture’s progress, which recently reported successful drilling and fracture stimulation of the Jack Lake 8 deep coal appraisal well.
Additionally, Bass continues to explore the Triassic gas potential around its Kiwi gas field, with recent studies identifying new prospects and a possible new hydrocarbon source rock. Funding options, including potential farm-downs, are being pursued to support development of this promising play.
Financial Position and Outlook
Despite increased activity and capital expenditure, Bass Oil remains debt free with a cash balance of A$0.92 million at quarter end, excluding restricted cash deposits supporting rehabilitation bonds. The company also benefited from a 43.5% cash rebate on research and development expenditure related to its gas commercialisation projects.
Managing Director Tino Guglielmo emphasised the importance of the Vanessa acquisition and gas sales contract as foundational to Bass’s growth into a mid-tier oil and gas producer. The company’s focus remains on expanding production, commercialising gas resources, and leveraging its operational strengths across Australia and Indonesia.
Bottom Line?
With regulatory approval for Vanessa imminent, Bass Oil’s pivot to gas could reshape its growth trajectory in 2026 and beyond.
Questions in the middle?
- When will regulatory approval for the Vanessa acquisition be finalised?
- How quickly can Bass ramp up gas production and sales from Vanessa?
- What are the prospects and timelines for commercialising the deep coal and Triassic gas resources?