Bass Oil Limited (ASX: BAS), based out of Melbourne, Australia, is engaged in the exploration and low-cost onshore oil production in Indonesia. Recently, in February 2019 the company acquired 55% interest in the Tangai-Sukananti KSO project in South Sumatra basin from Cooper Energy Limited (ASX: COE). On April 9th, 2019, the company provided its operations update for the month of March 2019.
As per the figures posted, the total field production amounted to 22,957 barrels of oil JV Share or 12,626 barrels of oil net to Bass. The March sales totalled 23,117 barrels of oil JV Share or 12,714 barrels net to Bass. Both the oil production and sales were up, increasing 7% over the February levels to 740 bopd thereby exhibiting a strong field performance despite closing down of the Bunian 1 well due to downhole pump failure.
The average monthly realised oil price for March was USD 62.49 compared with a monthly average oil price of USD 60.51 per barrel recorded in February, marking a rise of 3%. Besides, the fields continued to generate positive cash flows to the business with the field operating costs mostly at or below USD 25 per barrel.
Of late, the Indonesian team is currently sourcing a well service rig to perform a couple of well works including the Bunian 1 pump repair, Bunian 4 workover and the Tangai 4 conversion to water injector. The work will begin shortly.
Under its development planning, Bass has received approval from PT Pertamina, the Indonesian petroleum regulator, to issue a tender for the provision of 750 horsepower capacity drilling rig for the immediate drilling of the Bunian 5 well, which is expected to double the production from the field. Moreover, the company is engaged in evaluating several prospective onshore Indonesian acquisition targets, preferably close to the existing oil production infrastructure to expand its portfolio of oil properties.
The company announced its reserves and resources assessment as of December 31st, 2018 on February 25th, 2019. Accordingly, the net entitlement reserves 0.505 million barrels (mmbbls) were up by 76% on 0.320 mmbbls as of December 31st, 2017. The 2P (Proved plus Probable) net entitlement reserves decreased by 2% to 0.602 mmbbls due to 2018 production.
On March 29th, 2019, Bass released its Annual Report for the year ended December 31st, 2018, posting the operating loss after income tax for the period at $ 419,615, up on $ 98,149 recorded in the prior year ended December 31st, 2017. The companyâs net assets were valued at around $ 1.07 million including net cash and cash equivalents of $ 854,117.
The operating activities resulted in cash outflows of $ 333,687 as the payments to suppliers and employees ($ 4.42 million) exceeded the receipts from customers ($ 4.08 million). Besides, the investing activities (expenditure on oil properties, plant and equipment) also generated net cash outflows of $ 26,114, which were further supplemented by $ 369,550 from financing activities.
Bass has a current market valuation of ~ AUD 7.82 million with 2.61 billion outstanding shares. The BAS stock price last traded on April 4th, 2019 at AUD 0.003. Also, the company has a committed and strong shareholder base with the Board and management holding over 16% of the issued capital.
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