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Bass Oil Limited (ASX:BAS), published its operations update for January this year. At Tangai-Sukananti, the entire field production for January totalled to 22,071 barrels of oil (JV share) or 12,100 barrels of oil (net to bass). For the month of December last year, the oil sales summed up to 22, 175 barrels of oil (100% JV share) or 12,196 barrels (net to Bass).
Oil prices stabilised and recovered somewhat during January. The average price of oil for January was recorded at US$55.74. Whereas in December 2018, US$53.86 was realised as the average price of oil.Â
Strong field performance continued, with production in January averaging 710 barrels of oil per day (JV share), which was equal to production levels recorded in December. The production optimisation effort is proving successful in keeping production stable.
The field team is preparing for planned second-quarter preventative maintenance activities to minimise field and well downtime due to scale.
The construction of the Bunian 5 well site has already come to its conclusion. The award of the drilling contract for the program has been delayed by the availability of 650 horsepower capacity drilling rigs. Bass proposes to issue a tender for the provision of 750 horsepower capacity drilling rigs which are more familiar to the area. The Bunian 5 well is expected to commence drilling by mid-year.
The production capabilities of the Tangai-Sukananti fields are anticipated to rise through the drilling program. The preparation for advancing production facilities in the Bunian and Tangai is still going on.
BAS pursues its assessment for many possible onshore acquisition targets In Indonesia, specifically those who are adjacent to its already present oil production infrastructure since BAS aims toward further addition of prospective oil properties to its portfolio.
On 24 January 2019, BAS announced its quarterly report ending on 31 December 2018. The total production in the quarter continued at sustained high daily oil rates with the field achieving its highest quarterly production at least since 2014. It was directly attributable to the success of the completed production optimisation initiatives consistently resulting in improved monthly production since completion. Bass produced 39,920 barrels of oil (55% basis) in the quarter, an increase of 83.4% from the previous quarter. Quarterly oil sales increased 94.6% to 40.92 barrels of oil net to Bass.
As of 31 December 2018, Bass cash reserves were US$0.85 million, an increase of 17% over the previous quarter. There was a two -month lag from production to cash receipts as a result of prescribed invoicing processes. Therefore, the 1st quarter of 2019 was supposed to benefit from the remainder of sales in the December quarter. During the quarter Bass received into cash a part settlement of a royalty dispute of US$312,000 from the Settlement Party in a confidential settlement of past, present and future claims under the royalty agreement as per the announcement to the ASX on 4 October 2018.
Bass had observed that, on average, oil recovery factors achieved in Indonesian oil fields remained relatively low when compared to other regional analogues. In order to quantify this opportunity, Bass had entered two Memorandums of Understanding (MoUs) with the Bandung Institute of Technology (ITB), Indonesia, and Sejong University, South Korea. The MoU on CO2-EOR was announced to the ASX on 29 October 2018.
The stock of the company last traded at A$0.003 (3:16 PM, AEST on 11 February 2019) with the market capitalisation of circa 7.82 million.
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