Bass Oil Limited (ASX:BAS) Acquires Vanessa Gas Field and Launches $3.1M Capital Raise
Acquisition of Vanessa Gas Field
Bass Oil Limited (ASX:BAS) has acquired a 100% interest in PPL 268 and adjoining PRL 135, encompassing the Vanessa gas field, from Beach Energy Ltd. The acquisition includes a shut-in gas production well, a gas processing facility, and a 5 km pipeline connecting to the Cooper Basin gas gathering network at Moolion North. Bass will assume future abandonment liabilities with Beach Energy’s assistance. The transaction is subject to customary regulatory approvals.
Capital Raise Details
The company has launched a 1-for-3 non-renounceable entitlement offer at $0.032 per share, aiming to raise up to $3.1 million. Shareholders subscribing to the rights issue will receive one free attaching option for every two shares subscribed, exercisable at $0.05 by 31 May 2028. Directors and management will participate in the offer.
Growth Initiatives
Bass plans to recommission the Vanessa well to commence gas sales, positioning the company as a gas producer in Australia’s evolving energy market. The company is also advancing drilling projects in Indonesia, developing the Kiwi asset, and conducting a Triassic gas study in the Cooper Basin.
Use of Funds
The raised capital will be allocated towards acquiring and recommissioning the Vanessa gas field ($1.3M), drilling the Bunian 6 well in Indonesia ($1.0M), conducting the Kiwi field FEED study ($100,000), quantifying Triassic gas potential ($120,000), the Deep Coal Feasibility Study by SLB ($100,000), ongoing working capital ($240,000), and rights issue expenses ($240,000).
Executive Comments
Managing Director Tino Guglielmo commented: “We are extremely pleased with this acquisition as the Vanessa asset presents an opportunity for the Company to accelerate its entry into the gas business. Whilst Vanessa contains some remaining recoverable conventional gas, there is significant tight gas potential that could be accessed by fracture stimulation. We are planning to restart conventional gas production at Vanessa. In the meantime, the team is evaluating the commercial potential of the tight gas in the well and the gas contained within the deep coals which were penetrated by the Vanessa well. This acquisition represents another important milestone in our strategy to become a mid-sized oil and gas producer and continues to demonstrate the significant growth potential that Bass’ Cooper Basin portfolio provides. This capital raise supports a focused, high-impact work program that lays the foundation for meaningful production growth and long-term value creation for our shareholders.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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