Bass Oil Sees 132% Jump in Quarterly Oil Sales and Advances East Coast Gas Market Entry

Record Quarterly Oil Sales Fueled by Price Gains and Inventory Release

Bass Oil’s oil sales for the June 2026 quarter reached A$2.67 million, marking a 132% rise from A$1.14 million in the previous quarter. This growth was driven by a stronger realised oil price and increased sales volumes from inventory release. The average realised oil price climbed 37.2% to US$98.56 per barrel (A$143.49), compared to US$71.82 per barrel in the March quarter, reflecting a rebound in global crude markets.

Sales volumes notably increased in the Cooper Basin, where crude oil sales jumped 295.7% to 7,808 barrels in the June quarter from 1,973 barrels in March. This was due to the release of oil inventory that had built up during February and March because of rainfall-related trucking disruptions. Resumption of trucking in April enabled Bass to clear the backlog, lifting Cooper Basin revenue to A$1.25 million from A$0.19 million in the previous quarter, highlighting the significant impact of inventory normalization on sales.

Consistent Production Across Cooper Basin and Indonesia

Despite sales fluctuations, Bass maintained stable oil production in the June quarter with net output of 19,809 barrels, averaging 218 barrels per day, a 1.5% increase from 19,520 barrels in the March quarter. Both Cooper Basin and Indonesian Tangai Sukananti operations performed reliably without material disruptions.

Production from the 100%-owned Worrior and Padulla fields averaged 80 barrels per day, up 8% from the prior quarter, totaling 7,287 barrels. These facilities achieved 99% uptime during the quarter. The Indonesian operations, with a 55% working interest in a KSO, continued contributing significantly to group volumes, though specific June quarter figures were not disclosed.

Vanessa Gas Field Acquisition Paves Way for East Coast Gas Sales

Mid-June completion of the Vanessa gas field and infrastructure acquisition marks a key milestone in Bass Oil’s east coast gas market entry. The deal includes a gas processing facility and a 5-kilometre pipeline linking to the Cooper Basin gas network, enabling immediate commercialization without major new infrastructure investment. GPA Engineering is conducting an engineering study to finalize recommissioning plans.

The Vanessa asset offers multiple value opportunities beyond initial gas sales, including conventional gas reserves in the Toolachee and Patchawarra formations that may be developed via fracture stimulation. The well also penetrates the full Permian sediment sequence, including deep coal formations, providing a platform to assess commercial potential of deep coal resources in permit PEL 182 without drilling a new appraisal well. Management expects first gas sales from Vanessa by the end of 2026, pending successful engineering and recommissioning.

South Australian Government Grant Boosts Kiwi 1 Field Development

Bass Oil secured a A$3.5 million grant from the South Australian Government in May to support the Kiwi 1 field development, improving project economics by reducing capital outlay. An advance payment of A$856,000 was received in early June to accelerate engineering and planning.

The grant supports the ongoing pre-FEED study by GPA Engineering. Bass is evaluating tie-in options with Santos ahead of the full FEED study, a critical step toward a Final Investment Decision. The FEED phase will define development concepts, costs, schedules, and regulatory pathways, with government funding helping to mitigate project risks.

Bunian 6 Well Drilling Set to Double Oil Production

Drilling of the Bunian 6 oil development well began on 5 June 2026, with production expected to start in late August. Management forecasts this well will double Bass Oil’s production from about 218 barrels per day to approximately 436 barrels per day, marking a transformative boost to the company’s oil output.

If successful, the increased production will enhance cash flow and financial flexibility to support gas exploration and development. The drilling schedule is on track, though timing may be influenced by weather and operational factors. The Bunian 6 well’s performance will be a key near-term indicator for investors monitoring Bass’s growth toward mid-tier producer status.

Triassic Gas Exploration Advances with Seismic and Geochemical Analysis

Bass Oil is progressing Triassic gas exploration in the Kiwi trend with near-completion of Dundinna 3D seismic survey reprocessing. This effort aims to improve reservoir imaging and geological understanding. Early mapping results are encouraging, enhancing confidence in Triassic prospectivity and complementing the ongoing Kiwi 1 conventional gas development.

The company has commissioned detailed geochemical analysis of condensate and rock samples at a US laboratory to better understand hydrocarbon source rocks. Findings suggest Kiwi hydrocarbons derive from carbonaceous Triassic sediments and Permian Toolachee coals in the Arrabury Trough, potentially unlocking new exploration upside within Bass’s permits.

Deep Coal Gas Commercialisation Progressing via Santos JV

Bass participates in a Santos-led Cooper Basin joint venture focused on commercializing deep coal gas resources. The Phase 2 appraisal program included drilling and fracture stimulation of the Jack Lake 8 well, with the Neuro 1 well drilling scheduled soon. The program tests advanced well and hydraulic fracturing technologies to achieve commercial production from deep coal formations.

Success in this JV program would support Bass’s independent efforts in permit PEL 182, where it holds significant deep coal resources. The Vanessa acquisition is strategic, providing a platform to test deep coal potential without new drilling costs. Positive Phase 2 results could accelerate Bass’s commercialisation plans by leveraging JV learnings, enabling a staged development approach with limited capital risk.

Strong Financial Position Supports Growth Investments

Bass Oil ended the June quarter debt-free with A$3.18 million cash, down 8% from A$3.46 million in March but up 62% from A$1.96 million a year earlier. The year-on-year cash increase reflects capital accumulation despite ongoing exploration and development spending. The quarter-on-quarter cash decline relates to operational and exploration costs but remains sufficient to fund key projects like Vanessa recommissioning, Bunian 6 completion, and Kiwi engineering studies.

The A$856,000 grant advance for Kiwi development enhances financial flexibility and reduces Bass’s capital burden. Combined with higher oil prices and normalized sales, the company is well positioned to fund growth while maintaining balance sheet strength. Bass remains committed to value creation without debt, though investors should watch cash flow given the capital intensity of gas development initiatives.

Management Outlines Strategy to Become Mid-Tier Oil and Gas Producer

Managing Director Tino Guglielmo highlighted significant progress toward Bass Oil’s goal of entering the east coast gas market, citing the Vanessa acquisition as a foundational milestone. The Kiwi project’s government grant further validates its strategic and economic importance. The Bunian 6 drilling, forecast to double oil production, is another key growth pillar. These initiatives reflect Bass’s ambition to evolve from a small-cap conventional oil producer to a diversified mid-tier oil and gas company.

The company’s strategy centers on diversifying revenue and production through milestones including Vanessa first gas by year-end, Bunian 6 production ramp-up, Kiwi field FEED, and deep coal commercialisation. Successful execution would significantly scale operations, increase cash flow, and enhance shareholder value, though execution risks remain due to technical and market factors inherent in these projects.