Bass Oil has received a $3.5 million grant from the South Australian Government to fund pipeline construction for its Kiwi liquids rich gas project in the Cooper Basin, marking a key step towards production by 2028.
- Bass Oil awarded $3.5 million grant for Kiwi gas pipeline
- Grant from South Australian Government’s Gas Initiative program
- Kiwi gas field showed commercial production rates in 2024
- Bass exploring additional financing and farm-in partners
- Project aims to be operational by end of 2028
Grant Boosts Kiwi Gas Project
Bass Oil Limited, an Australian oil producer with significant interests in the Cooper Basin, has secured a $3.5 million grant from the South Australian Government’s Gas Initiative program. This funding is earmarked for the construction of a pipeline to connect the company’s 100% owned Kiwi liquids rich gas project to existing Cooper Basin infrastructure. The grant underscores the project’s importance in expanding South Australia’s gas supply and supports the state’s broader energy strategy.
Commercial Production Demonstrated
The Kiwi gas field, located within permit PRL 245, demonstrated promising commercial production rates during a test in late 2024. The well produced 4.1 million cubic feet per day of gas alongside 988 barrels of condensate daily, highlighting the field’s liquids rich potential. These results validate the technical viability of the Triassic gas play in the northern Cooper Basin, a relatively new and strategically significant resource for Bass Oil.
Financing and Development Outlook
While the grant provides cornerstone funding for pipeline infrastructure, Bass Oil is actively pursuing additional financing options to fully develop the Kiwi project. Discussions are underway with potential farm-in partners, which could bring in further capital and expertise. The company aims to bring the project online by the end of 2028, aligning with the grant’s conditions and South Australia’s energy objectives.
Strategic Significance
Bass Oil’s Managing Director, Tino Guglielmo, emphasised the milestone as a validation of the project’s significance and the broader Triassic gas play. He highlighted South Australia’s supportive regulatory environment as a key factor in advancing the project. The Kiwi gas development not only promises to enhance Bass Oil’s production profile but also contributes to regional energy security and economic growth.
Looking Ahead
As Bass Oil progresses towards finalising the grant agreement and securing further funding, market watchers will be keen to see how quickly the project advances towards production. The successful development of the Kiwi gas field could position Bass Oil as a notable player in Australia’s evolving gas landscape.
Bottom Line?
Bass Oil’s $3.5 million grant marks a pivotal step, but securing full project funding remains the next critical hurdle.
Questions in the middle?
- Who will partner with Bass Oil as farm-in investors for the Kiwi project?
- What is the timeline and risk profile for completing pipeline construction by 2028?
- How will Kiwi’s production impact Bass Oil’s overall output and revenue forecasts?