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Bass Oil Ltd (ASX:BAS), a notable small-cap oil producer, has reported promising outcomes from its Extended Production Test (EPT) at the Kiwi-1 well, located in South Australia's Cooper Basin. The test results have exceeded initial expectations, particularly in terms of condensate yields.
Key Test Results
The Extended Production Test at Kiwi-1 has demonstrated that gas flow rates are consistent with forecasts. More importantly, the condensate yields have surpassed preliminary estimates. The test data indicates that gas impurity levels are relatively low, with CO2 content recorded at 5%, which is below initial projections. Additionally, hydrogen sulfide (H2S) levels are minimal, and the Condensate to Gas Ratio (CGR) has been measured at 235 barrels per million standard cubic feet, which exceeds pre-test expectations by over tenfold.
Implications of the Test
These findings suggest that for every billion cubic feet (BCF) of gas recovered from the Kiwi-1 reservoir, more than 200,000 barrels of condensate could be produced and marketed at prices comparable to light sweet crude oil. This represents a significant economic opportunity, given the enhanced condensate yields.
The completion of the sampling program marks a critical milestone, with gas condensate samples currently en route to the laboratory for comprehensive compositional analysis.
Future Prospects
The test results underscore the potential of the Kiwi-1 well as a significant commercial asset. The high condensate content, coupled with the valuable gas resources, points to a promising revenue generation opportunity. The management team is now focused on evaluating the results and establishing commercialization timelines.
Bass Oil Ltd is expected to provide further updates as the analysis progresses and the commercialization strategy is finalized. The successful EPT reinforces the well's potential to be a key contributor to future revenue streams for the company.
