Bass Oil Faces Timing Risks on Bunian 6 Well and Vanessa Gas Acquisition

April Sales Surge on Cooper Basin Stock Release and Strong Prices

Bass Oil Limited (ASX:BAS) reported a striking 245% increase in total sales revenue for April, reaching A$1.35 million net to the company. This surge was largely powered by the sale of accumulated oil stocks from the Cooper Basin and persistently high oil prices, with the average price at the Cooper Basin hitting A$168.64 per barrel. The company sold 4,537 barrels from the basin after trucking operations resumed in early April following road repairs from heavy rains earlier in the year.

April’s total group production averaged 209 barrels of oil per day (bopd), a 4% increase from March, with total monthly production of 6,274 barrels. Cooper Basin output jumped 31% month-on-month to 2,251 barrels, buoyed by the Padulla field returning to production. Bass expects production from the basin to stabilize between 85 and 90 bopd as operations normalize.

Indonesian operations remained steady, producing 4,023 barrels net to Bass, with sales of 4,100 barrels at an average price of US$111.45 per barrel, marking a 13.5% price rise. Minor downtime caused a slight production dip but did not materially impact revenue.

Bunian 6 Well Drilling Imminent, Set to Double Indonesian Output

The drilling rig for the Bunian 6 development well in Indonesia is over 90% rigged up and undergoing pre-spud compliance checks, with spudding expected by the end of May. The well is targeted to come online by the end of June, potentially doubling Bass’s group oil production. This development follows earlier moves to ramp up Indonesian output, which included mobilising the rig to the site in April and securing funding under the KSO terms.

The Bunian 6 well is a critical growth driver for Bass, aiming to boost production from the Tangai-Sukananti oil fields. This follows the company’s recent efforts to stabilise and increase production across its assets, including the Cooper Basin fields. The well’s progress was highlighted amid a backdrop of rising oil prices, enhancing the revenue outlook for the mid-year period. This operational momentum builds on Bass Oil’s March quarter challenges and funding milestones as detailed in its recent $3.5 million grant funding and rig mobilisation to Bunian 6 updates.

Vanessa Gas Field Acquisition Nears Completion with Regulatory Bonds Lodged

Bass and Beach Energy have lodged the required bond securing regulatory approval for the Vanessa gas field acquisition, with transfer documentation in final preparation. The acquisition includes a gas processing facility and a connecting pipeline to the Cooper Basin gas network, positioning Bass for its first gas sales into the east coast market, targeted by year-end.

GPA Engineering is advancing an engineering study to firm up the scope for recommissioning the Vanessa facility. The acquisition not only provides immediate gas sales potential but also access to conventional and tight gas reserves in the Toolachee and Patchawarra formations, accessible via fracture stimulation. Furthermore, the Vanessa well penetrated deep coal seams, offering a strategic location to commercialise the large deep coal resource in PEL 182 without incurring new drilling costs.

Kiwi Field Development and Seismic Reprocessing Show Promise

Bass is progressing the Kiwi gas field development with GPA Engineering engaged to update the pre-FEED study and undertake the FEED study, a crucial step toward a Final Investment Decision. The company secured $3.5 million in grant funding from the South Australian Government to accelerate this project, with additional funding options being pursued.

Reprocessing of the Dundinna 3D seismic survey is underway, yielding encouraging initial results that improve imaging of target reservoirs. Bass is increasingly confident that the hydrocarbons at Kiwi originate from carbonaceous Triassic sediments in the Arrabury Trough. To validate this, the company has sent Kiwi condensate and rock samples for detailed geochemical analysis in the US, expected to shed light on the source of the liquids-rich gas and inform future exploration. These efforts complement the ongoing Kiwi gas field study and align with broader deep coal commercialisation initiatives led by Santos in the Cooper Basin JV.