On 15 January 2019, Bass Oil Limited (ASX: BAS), a petroleum producer company shared an update regarding its onshore Indonesian oil operations (Tangai-Sukananti asset) for December 2018. During this month, the company was successful in achieving the monthly target by producing an average of 712 barrels of oil per day. In total, there were 12,139 barrels of oil produced in December.
After the acquisition of the asset under discussion, the company has reported the latest production to be the third highest monthly production of oil. In December, the total sale of oil was 13,061 barrels (net to BAS). The monthly average oil price per barrel was US$53.86 in December.
During December, the company completed the construction of the Bunian 5 well site. However, there is a delay in the drilling contract due to the absence of rig. As per the discussions with the contractors, the apparatus will be not be made available by March 2019.
Once the drilling program starts, it will increase the production capacity of the Tangai-Sukananti fields. It will also increase the existing reserves as well. Post the completion of the drilling phase, the company will then be targeting the upgradation of the Bunian and Tangai production facilities.
In December, the company announced that post the completion of the due diligence inquiry, it will withdraw from the acquisition of a 100% participating interest in the North Madura PSC.
The date and year of ASX listing for BAS was 30 September 2004 and since then the performance of the company remains consistently negative. In last one year, the performance of BAS was -25%.
For the half-yearly performance of FY2018 which ended on 30 June 2018, Bass Oil Limited made a loss of $554,050. The balance sheet of the company shows a net asset base of $929,780 which indicates that it will somehow manage its long-term obligations. It has a debt-equity ratio of 3.12 which is a sign of risk as the company during the period took financial assistance from the external sources, primarily in the form of debt. BAS has a total current asset of $2,011,253 and total current liabilities of $2,507,565 which indicates that the company’s current financial position is on a bleak side in terms of managing working capital and clearing any short-term debt. Further, during the period, there was an increase in the accumulated losses due to the weak operating performance of the company. It also shows that there was some erosion of shareholders' wealth during the period which can have a negative impact in the market place for the company.
By the end of the half year FY2018, BAS has net cash and cash equivalent worth $990,991.
At present, the market price of the share was A$0.003 (AEST: 2:46 pm, 15 January 2019) with the market capitalization of A$7.82 million.
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