On 15 April 2019, an Australian Indonesian oil exploration and production company, Bass Oil Limited (ASX: BAS) announced its quarterly report for the period ended on 31 March 2019.
The comparative performance for oil production and its sales is as follows:
Source: Company’s ASX announcement dated 15 April’19
Mr Tino Guglielmo, MD, BAS stated that the company was highly focussed on its current field production optimization and development of the drilling program. The team of the company has acknowledged and is aiming towards acquiring some thrilling growth opportunities in the productive oil and gas basins in the Indonesian region.
On the field performance front, for March 2019, the entire production reflected a return to prior month’s high levels, post the scheduled maintenance in February 2019. April 2019 production has continued at above 700bopd (Barrels of oil per day).
BAS had generated 35,373 barrels of oil (55% basis) in the present quarter, which is a decrease of 11.4 percent from the prior quarter, the record production in October last year. The company’s March quarter oil sales decreased by 14.1% to 35,171 barrels of oil. BAS received an average oil price of US$59.58 for the March quarter, which has decreased by 8.4%.
As on 31 March 2019, the company’s cash position stood at USD1.01 million, reflecting a rise of 18.3 percent from the previous quarter. The business has produced a positive cash flow despite receiving payment for only two months due to a processing delay in Pertamina. The third month receivable of $480,000 is expected in April 2019.
The company continues to examine several onshore and offshore opportunities in Indonesia, to add potential oil properties to its portfolio this year.
BAS has an active business development program, comprising of three-tiered strategy including:
1) Strategic growth which involves the company transforming through the acquisition of production assets, for which BAS is actively screening deals.
2) Value creation through material growth by shortlisting additional opportunities with larger scale potential requiring low- financial commitment.
3) Value maximisation with company evaluating multiple potential deals sourced from strong networks, by application of recovery improvement technologies and by acquiring mature production assets enabling synergies.
The company has observed that, on an average, oil recovery factors attained in the oil fields of Indonesia had remained relatively low, when compared to other regional analogues. The scenario denotes a substantial business opportunity. In order to quantify this opportunity, Bass has progressed its technology development via the Memoranda of Understanding (MoU) with the Bandung Institute of Technology (ITB), Indonesia, and Sejong University, South Korea.
From the cash flow perspective, the net cash inflow from operating activities on 31 March 2019 stood at USD 0.159 million. The cash and cash equivalents at the end of the period stood at ~ USD 1 million. The total estimated cash outflows for the next quarter is USD 1.65 million.
Recently, BAS provided its March 2019 updates, along with FY2018 outcomes.
The stock of the company last traded on 10 April 2019, at a price of A$0.003. The company’s market capitalisation is around A$7.82 million with ~ 2.61 billion shares outstanding.
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