Bass cancels acquisition plans

ASX minnow Bass Oil continues to be largely unaffected by volatile markets and the global pandemic, with March production up 5% from the month before and its operations onshore Indonesia continuing unabated, but has deferred negotiations on new prospects after earlier suggestion opportunities for growth.
Bass cancels acquisition plans Bass cancels acquisition plans Bass cancels acquisition plans Bass cancels acquisition plans Bass cancels acquisition plans

Production not hit by COVID-19

Mark Tilly


Mark Tilly


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Monthly average oil production for March was 683 barrels per day net to Bass, up 5% compared to February levels, Bass told the market this morning, with total field production for the month coming to 21,175 boe JV share, with 11,646 netted to Bass. 

March oil sales totalled 21,304 boe, with 11,717 barrels going to Bass. 

The average monthly realised price for March was US$31.49/bbl, compared to the monthly average oil price of US$55.00/bbl recorded in February, with Bass using Indonesian Crude pricing which trades at a premium to West Texas Intermediate. 

As of this morning WTI is trading at US$19.92/bbl while Brent Crude sits at US$28.41. 

Bass said its Tangai Sukananti field continues to generate cashflow, thanks to field operating costs equating to around US$20/bbl. 

The company has reduced corporate costs and together with the low overheads has been one of the few oil and gas businesses to have found a port sheltered from the economic typhoon currently raging.

It said it had contingency plans in place to mitigate against the impact on production from an unexpected outbreak of COVID-19.

During the quarter the workover rig completed the pump repair at the Tangai-3 well, which will return to production as soon as practical.

In February the Tangai-4 well was converted to a water injector, which was due to host the field pilot for the Smart-Water injection trial in March, but has been delayed indefinitely due to the travel restriction in place in Indonesia due to the pandemic. 

The company has also deferred evaluation and negotiations on several onshore Indonesian opportunities, until the overall outlook for the energy sector improves. 

"There is significant uncertainty about the timing of any improvement in the economic climate," the company noted.

"The company will vigilantly monitor the changes in outlook." 

Bass has been mulling local acquisitions for some time, and spent last year conducting due diligence, with energy consumption in Indonesia rapidly increasing and local supply cannot meet the demand. 

Bass was trading steady this morning at 0.1 cent, down from 0.2c Wednesday.