On 13 May 2019, Bass Oil Limited (ASX: BAS), an Australia-based, oil producer and energy player, which features low-cost onshore oil production in the Indonesian region, presented an update on its onshore Indonesian oil operations for April 2019 period.
Bass recorded production of 20,273 barrels of oil for April 2019 at Tangai-Sukananti, out of which 11,150 barrels are net to the company on a 55% basis of the Joint Venture. The total oil sales of the project stood at 20,334 barrels of oil, out of which a net of 11,184 barrels accounted for the oil sales of the company from Tangai-Sukananti.
Bass mentioned that the oil sales and production for March 2019 were slightly down, and the average output for April 2019 stood at 676 barrels per day. The recovery in the crude oil prices amid production decline in the United States crude oil inventory led the company to realise a high average sales price. The average monthly realised oil price for April 2019 stood at US$67.39 a barrel, up as compared to the average monthly oil price of US$62.49 a barrel in March 2019.
The fields continue to generate positive cash contributions to the business, and the field operation costs are currently circulating at or below US$25 a barrel. The Bunian 1 and Tangai 1 wells were shut in amid downhole pump failure yet the production inched up in April and stood at 676 barrels a day of the joint venture share. The company recently released its quarterly sales and production update.
As per the company, to perform a program of well work, which will include the pump repair of Bunian 1 & Tangai 1 wells, and Tangai 4 conversion to a water injector, a team in Indonesia is currently sourcing a well service rig, and the work is expected by the company to commence soon.
The company further intends to develop the Bunian 5 well for which the company issued a tender for the provision of 750 horsepower capacity drilling rig, and Bunian 5 well is estimated to double the production from the field, which in turn, could lift the increasing developed resources for the company. The Bunian 5 well is also expected to inch up the remaining production capacity of the Tangai-Sukananti field facilities.
Bass paid the penultimate instalment of the deferred consideration of A$500,000 plus interest in April 2019 to the Cooper Energy in line of purchase of the Tangai-Sukananti KSO and mentioned that a final instalment of A$770,000 along with interest is due on 30th June 2019.
The company is constantly evaluating several prospective onshore Indonesian acquisition targets as it intends to add prospective oil properties to its existing portfolio further.
The shares of the company last traded on 10 May 2019. The stock has generated a negative return of 42.86%, and in the last month period, it has given a negative return of 33.33%. It’s 52-week high has been noted as A$0.005. The company has a market capitalization of around A$5.21 million with 2.61 billion shares outstanding.
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