- 01Bunian 6 drilling set to boost production to 750 bopd from early May.
- 022025 financials reflect oil weakness but progress on gas strategy.
- 03Execution and funding remain key risks for gas transition.
Bass Oil (ASX: BAS) is mobilising a drilling rig to its Bunian 6 well at the Tangai-Sukananti KSO in Indonesia's South Sumatra Basin.
Drilling is expected to begin in early May 2026, with the well projected to come online by mid-June 2026.
The well targets the primary TRM3 sandstone reservoir (TRM3SS) and will also test secondary GRM and K reservoirs.
The company estimates an 80% probability of success (Pg), and has stated that all drilling expenditure is fully cost-recoverable against existing production under the KSO terms.
750 Bopd Field Output Production Target
The Bunian 6 well is designed to significantly increase field production. It is expected to lift the Tangai-Sukananti KSO field's total daily output from 250 barrels to an estimated 750 bopd.
As the operator with a 55% interest, Bass Oil's share of production is anticipated to increase from 140 bopd to approximately 410 bopd.
Initial production from the TRM3SS reservoir alone is forecast at 500 bopd, with an estimated ultimate recovery of 151,000 barrels (P50, 100% JV basis).
2025 Gas Strategy Progress
Bass Oil's 2025 annual report highlighted advancements in its gas strategy.
This included the announced acquisition of the Vanessa gas field and facilities, with completion expected in the March quarter 2026, and A$3.5 million in South Australian government grant funding for the Kiwi gas field connection.
However, 2025 saw oil production and revenue decline year on year due to lower realised oil prices and delayed Indonesian drilling, which contributed to a net loss after tax of A$0.66 million.
The company remained debt-free with A$0.92 million cash at 31 December 2025, further bolstered by firm commitments to raise A$3.0 million (before costs) via a placement announced in March 2026.
Operational Challenges and Funding Considerations
Recent operational updates indicate ongoing challenges.
In February 2026, Cooper Basin production and sales were disrupted by heavy inland rain, leading to road closures and constrained artificial lift capacity, though a sales catch-up was expected in early April.
While the Kiwi gas project secured A$3.5 million in grant funding, additional financing is still required for its full development.
Execution risks also remain for the timely completion and recommissioning of the Vanessa gas field and the company's broader reliance on equity raisings for its development programs.
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