Bunian 6 Drilling Approval Poses Execution Risks Amid Elevated Oil Prices
Bass Oil has received regulatory approval to award the drilling contract for its Bunian 6 well in Indonesia, aiming to add 500 barrels of oil per day to current production by mid-year.
- Regulatory approval granted for Bunian 6 drilling contract
- Drilling rig to commence operations in May
- Bunian 6 expected to add 500 barrels per day
- Current production at Bunian field is 250 barrels per day
- Final commitment in permit’s work program
Regulatory Approval and Contract Award
Bass Oil Limited (ASX:BAS) has secured the Indonesian regulator’s approval to award the drilling contract for the Bunian 6 oil development well, a key milestone in its Indonesian operations. The rig, currently contracted to Pertamina EP, is scheduled to move to the Bunian 6 site and begin drilling in May. This approval marks the final step in fulfilling the firm work program commitment for the permit.
Production Upside and Operational Context
The Bunian oil field, where Bass holds a 55% interest and operates the permit, currently produces around 250 barrels of oil per day. The new Bunian 6 well is forecast to add an additional 500 barrels per day, effectively tripling output from the field once it comes online. This increase is particularly timely given the current elevated oil price environment, which could significantly enhance Bass Oil’s revenue stream.
Strategic Importance and Next Steps
Located southwest of the prolific Bunian 3 well, which has already recovered over 1.2 million barrels, Bunian 6 represents a strategic extension of Bass’s production footprint in the South Sumatra Basin. All necessary materials for drilling and completion are already on site, and infrastructure such as the flowline has been installed and tested, suggesting a smooth transition to production by mid-year. Further technical details and updates are expected in a pre-spud release.
Management Commentary
Bass Managing Director Tino Guglielmo expressed optimism about the project, highlighting the expected material boost to production at a favourable time for oil prices. The company’s ability to swiftly move from approval to drilling commencement underscores its operational readiness and commitment to growth in the region.
Bottom Line?
With drilling set to start soon, Bass Oil is poised for a significant production uplift that could reshape its near-term financial outlook.
Questions in the middle?
- What are the detailed cost implications and capital expenditure for the Bunian 6 well?
- How quickly will the additional 500 barrels per day ramp up after drilling completion?
- What are the longer-term plans for further development in the Bunian permit area?
