Bass Oil Limited (ASX:BAS) Announces Rights Issue and Strategic Acquisitions
Corporate Overview
Bass Oil Limited is an ASX-listed energy company with oil production in the Cooper Basin and Indonesia. The company is debt-free, with strong cash flow, and led by an experienced team focused on unlocking value from multiple emerging gas plays.
Current Valuation
Bass is potentially deeply undervalued, with the indicative value of its 2P reserves exceeding the market capitalisation by approximately 150%. This valuation does not include the potential value from PEL 182 or Kiwi assets, presenting significant upside potential.
Vanessa Gas Acquisition
The strategic acquisition of the Vanessa Gas field provides Bass with immediate access to infrastructure and a fast-track entry into the East Coast gas market. This acquisition accelerates the evaluation of the deep coal gas resource in PEL 182, enhancing long-term growth prospects.
Capital Raising
Bass is undertaking a 1-for-3 non-renounceable rights issue at an issue price of $0.032 per share to raise approximately A$2.63 million. The funds will be deployed to recommission the Vanessa gas facility, drill the Bunian 6 well in Indonesia, complete FEED studies, and advance the deep coal feasibility study with SLB.
Deep Coal Gas Resource
PEL 182 contains an estimated 21 TCF of gas and 845 million barrels of condensate. Phase 2 of the feasibility study will determine well and frac designs, positioning Bass to exploit this substantial resource and drive long-term value creation.
Kiwi Gas Discovery
The Kiwi gas field has demonstrated strong initial results with production rates of 4.1 million cu-ft/day and 988 barrels of condensate per day. This has increased the contingent resources to 1.02 million boe and an ATAX NPV of over $20 million, with development approval expected to significantly boost reserves.
Indonesia Operations
The Bunian 6 development well in the Tangai-Sukananti oil field aims to increase production from approximately 135 to 435 barrels of oil per day. This investment is expected to be recovered within six months, enhancing Bass’s cash flow and production base in Indonesia.
Outlook
Bass’s strategy includes first gas sales into the East Coast market ahead of schedule, progressing toward final investment decisions in 2025, and exploring multiple funding options to accelerate the development of its high-impact Cooper Basin gas assets.
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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