Australian-based, Indonesian oil producer, Bass oil Limited (ASX: BAS) has released its quarterly report for the period ending 31 December 2018. The company’s Oil production in the December quarter increased by 83 percent as compared to the previous quarter. The December quarter’s Oil production is averaging almost 800 barrels of oil per day (JV share) as a result of optimization projects completed.
During the quarter, the company produced 39,920 barrels of oil which were 83.4 percent higher than the previous quarter. The company’s oil sales in the December quarter increased by 94.6 percent to 40.92 barrels of oil. The Company witnessed a 7.5 percent decrease in oil prices from the September quarter, noting an average oil price received for the December quarter of US$65.01.
In the December month, the company’s total field production at Tangai-Sukananti was 12,139 barrels and sold oil 13,061 barrels. During the December month, the oil prices continued to decline, and the average monthly realized oil price was US$53.86 per barrel.
The company is planning for a new drilling program at Tangai-Sukananti, contract for which is expected to be awarded in the first Quarter of 2019. The company also informed that the mobilization and spud of the first well, Bunian 5, is soon going to occur.
The company is progressing to upgrade the Bunian and Tangai production facilities which will allow the company to process the additional fluid production anticipated following the completion of the drilling phase of the work program. The company has already commenced the planning works for the upgrade.
At the end of the December quarter, the company had cash reserves of US$0.85 million. During the December quarter, the cash reserves increased by 17% over the September quarter. During the quarter, the company received a partial settlement of a royalty dispute of US$312k from the Settlement Party in a confidential settlement of past, present and future claims under the royalty agreement.
To expand its footprint in Indonesia, the company is accessing several acquisition opportunities. Further, the company is evaluating various onshore and offshore Indonesian acquisition targets for placement on its short list, particularly those situated in close proximity to its existing production infrastructure. Recently, the company entered into Memorandums of Understanding with the Bandung Institute of Technology (ITB) and Sejong University to quantify the opportunity of accessing the additional oil that can be recovered from existing fields. As at 30 September 2018, the company had net cash used in operating activities of US$260k and cash and cash equivalent of $728K.
In the half year ended 30 June 2018, the company incurred a loss of $554,050. As at 30 June 2018, the company had current assets of $2.011 million and total current liabilities of $2.50 million.
Today, the company’s shares traded flat at $0.003 with a market capitalization of circa $7.82 million as on 24 January 2019.
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