Bass Oil reported steady February production with some operational setbacks in the Cooper Basin, while gaining regulatory approval for the Vanessa gas field acquisition and securing government funding for Kiwi gas development.
- February production averaged 220 barrels of oil per day across Bass Oil's assets
- Cooper Basin sales delayed due to heavy rains, impacting revenue timing
- Regulatory approval received for Vanessa gas field acquisition, enabling first gas sales in H2 2026
- South Australian Government awarded $3.5 million grant for Kiwi gas field development
- Indonesian operations stable with slight production decline but higher oil prices
February Production and Operational Hurdles
Bass Oil Limited reported a total group oil production average of 220 barrels per day (bopd) for February 2026, amounting to 6,152 barrels for the month. However, production in the Cooper Basin faced notable challenges. Heavy and successive rain events led to road closures, forcing a suspension of oil sales and temporary shut-ins at key fields such as Worrior and Padulla. These weather disruptions caused oil to be stored onsite, delaying sales and revenue recognition. The Padulla field was shut in late February due to storage capacity limits, while Worrior continued producing to storage tanks. The company expects trucking and sales to resume in early April, anticipating a catch-up in oil sales revenue.
Vanessa Gas Field Acquisition: A Strategic Milestone
In a significant development, Bass Oil secured regulatory approval for its acquisition of the Vanessa gas field, which includes a gas processing facility and a pipeline linking to the Cooper Basin network. This acquisition positions Bass to enter the east coast gas market with planned first gas sales in the second half of 2026. Beyond immediate sales, the Vanessa asset offers promising upside through potential reserve growth by exploiting untested conventional and tight gas formations via fracture stimulation. Moreover, the field provides a strategic platform to advance commercialisation of deep coal resources without the expense of new drilling, leveraging existing wells.
Advancing Gas Commercialisation and Development Funding
Bass is progressing phase two of a deep coal commercialisation study, led by SLB, focusing on well and fracture stimulation design to unlock economic potential. This effort aligns with broader Cooper Basin joint venture activities, including Santos’ drilling and fracture stimulation trials. Additionally, Bass announced it secured a $3.5 million grant from the South Australian Government to accelerate development of the Kiwi gas field. The company continues to explore further funding avenues, including potential farm-downs, to support this project. The Kiwi gas field area also benefits from ongoing seismic reprocessing and studies suggesting new hydrocarbon sources, enhancing its exploration appeal.
Stable Indonesian Operations and Upcoming Drilling
On the international front, Bass Oil’s Indonesian Tangai-Sukananti oil fields maintained steady production, averaging 142 bopd (Bass share) in February, despite a slight 4.5% decline due to minor downtime and natural reservoir depletion. The average oil price received rose by nearly 6% to US$66.73 per barrel, supporting revenue. Preparations are underway for the drilling of the Bunian 6 development well, with all materials delivered and drilling services contracted. Drilling is expected to commence in May, marking a key step in sustaining and potentially growing Indonesian production.
Outlook and Strategic Implications
Bass Oil’s February update highlights a company navigating operational headwinds while making strategic advances in gas assets and development funding. The delayed Cooper Basin sales underscore weather-related risks but also set the stage for a revenue rebound in coming months. The Vanessa gas field acquisition and Kiwi gas field grant represent pivotal growth catalysts, potentially transforming Bass’s portfolio with gas production and commercialisation opportunities. Meanwhile, Indonesian operations remain a steady contributor as new drilling approaches. Investors will be watching closely how these developments unfold through 2026.
Bottom Line?
Bass Oil’s blend of operational resilience and strategic asset growth sets a promising yet weather-sensitive path forward.
Questions in the middle?
- When exactly will Cooper Basin oil sales resume and how large will the catch-up revenue be?
- How quickly can Bass commercialise gas production from the Vanessa field and what are the cost implications?
- What funding strategies will Bass pursue to fully develop the Kiwi gas field beyond the government grant?