Basin Energy Limited reported a challenging cash flow quarter ending December 2025, offsetting operational outflows with financing inflows and strategic asset sales. The company remains confident in sustaining operations amid variable exploration costs.
- Net cash used in operating activities of AUD 403k for the quarter
- Investing activities consumed AUD 58k, mainly on exploration capital expenditure
- Financing activities provided a net inflow of AUD 1,240k
- Cash and cash equivalents ended the quarter at AUD 975k
- Binding agreement to sell a non-core asset to reduce costs and raise funds
Quarterly Cash Flow Overview
Basin Energy Limited has released its cash flow report for the quarter ending 31 December 2025, revealing a net cash outflow from operating activities of AUD 403,000. This reflects ongoing expenditure primarily related to exploration and evaluation, which is typical for a company in the oil and gas exploration sector. Investing activities also saw a net outflow of AUD 58,000, largely driven by capitalised exploration costs.
Financing and Liquidity Position
Despite these outflows, Basin Energy managed to secure a net inflow of AUD 1.24 million from financing activities, helping to bolster its cash position. The company ended the quarter with AUD 975,000 in cash and cash equivalents, down from AUD 1.64 million at the previous quarter’s end. This liquidity buffer is critical as the company navigates the seasonal variability inherent in exploration activities.
Strategic Asset Sale and Government Support
To further strengthen its financial footing, Basin Energy has entered into a binding agreement to sell a non-core asset at its Marshall project. This move is aimed at reducing ongoing costs and generating additional funds. Additionally, the company expects to receive a Queensland Government cash grant in the upcoming quarter, which will supplement recent drilling expenditures and provide further financial support.
Outlook and Operational Continuity
The company acknowledges that exploration costs are subject to seasonal fluctuations, with the December quarter incurring higher expenses due to drilling activities that have now concluded. Basin Energy remains confident in its ability to continue operations and meet business objectives, supported by access to government grants and a willingness among shareholders and equity market participants to provide further capital if needed.
Related Party Payments and Governance
The report also discloses payments totaling AUD 96,000 to related parties during the quarter, a standard disclosure that investors will monitor for governance transparency. The company’s board has authorised the release of this report, affirming its compliance with accounting standards and providing a true and fair view of the cash flows.
Bottom Line?
Basin Energy’s strategic asset sale and government support will be pivotal as it manages cash flow variability and prepares for the next phase of exploration.
Questions in the middle?
- What is the expected timeline and financial impact of the non-core asset sale at Marshall?
- When exactly will the Queensland Government grant be received, and how much will it total?
- How does Basin Energy plan to manage exploration expenditure volatility in upcoming quarters?