Bass Oil Ltd Trades Higher On Hopes For East Coast Gas Market

Shares in Bass Oil Ltd (ASX: BAS) have climbed over 13% to $0.051 in early trade on heavy volume, as production testing of the Kiwi 1 in the Cooper Basin looms.

A successful extended production test at Kiwi could provide a clear pathway for Bass to enter the east coast gas market of Australia.

Bass has received project approvals as well as the equipment required to complete the well for the production test.

The objectives of the test are to confirm the potential field size and gas composition.

Results are expected to be known within 60 days of commencement of the test with commercial gas offtake agreements to be negotiated thereafter.

Tino Guglielmo, managing director, commented:

“The Kiwi 1 EPT is a key milestone for Bass’ growth plans in the Australian gas market.

“The main objective of this test is to gather the data required to confirm commerciality and to upgrade the potential of the surrounding prospects and leads.”

Third-party wholesalers

In promising news, the company has fielded numerous inquiries from third-party gas wholesalers interested in contracting gas from Kiwi.

Negotiations will run in parallel to enable a fast monetisation of the gas once the test is finalised and it demonstrates the commercial potential of the field.”

Kiwi 1 potential

Kiwi 1 was drilled in 2003 as an exploration well, resulting in a Triassic age, Callamurra Member gas discovery. It flow tested at 9.6 million cubic feet per day on a drill stem test.

The discovery, which was drilled on a 2D seismic data set, was originally thought to contain a sub-commercial quantity of gas.

However, a 3D seismic survey was subsequently acquired over the area. Bass has interpreted the survey and upgraded the potential size of the Kiwi discovery.

This has resulted in a revised assessment of a mean Contingent Resource of 5.24 BCF and a 3C Contingent Resource of 11.5 BCF.

This boosted confidence that Kiwi contains a commercial volume of gas, providing a pathway to market.

Commercialisation of Kiwi will extend infrastructure to the northern Cooper Basin, connecting other plays between Kiwi and PEL 182 (Bass 100%) deep coals – increasing scale.

Recent studies at PEL 182 highlight a significant new gas source in the deep coals.

Santos and others have recognised a deep coal play as the potential renaissance of the Cooper Basin.

Bass is evaluating pathways towards commercialising these deep coals in PEL 182.

 

 

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