Bass Oil lifts Indonesian oil field production by 21%

Bass Oil ASX BAS Tangai oil well Indonesia
Bass Oil's Tangai-3 oil well in Indonesia.

Bass Oil (ASX: BAS) has reported a 21% increase to oil production from its Indonesian oil field during March, which the company claims is its highest output since acquiring the project tin 2017.

The boosted production has been attributed to optimisation work completed during the past six months at Tangai-Sukananti KSO project in south Sumatra.

Oil output for March rose to 19,883 barrels of oil, with Bass netting 10,936bbl of oil. The company sold its oil for an average price of US$59.83 per bbl.

This is up 21% on February’s production of 16,403bbl of oil, where Bass netted 9,021bbl of oil and sold it for an average price of US$59.82/bbl.

Production is planned to grow a further 250bopd, with the additional production to come from the Bunian-3 well within the project.

Bass commissioned a new larger flow line at Bunian-3 mid last month. The new flowline cleared a previous bottleneck and has enabled production capacity to double from 350bopd to 700bopd.

The well is currently producing 450bopd but will be gradually increased to capacity this month.

Other optimisation work at the project included the speed improvements to the Bunian-1 pump and removing scale from Tangai-1. Scale was also eradicated from the water separation tank and pipework at the Bunian central processing plant.

Meanwhile, Bass has almost completed a full study to establish oil in place reserves and identify new drill targets.

Drilling of these targets has been pencilled in for the September quarter.

Bass’s strategy is to focus on ongoing optimisation of its wells and infrastructure to ensure continued high output.

As a result, Bass is planning to upgrade the Bunian and Tangai production facilities. The upgrade will also accommodate additional oil and fluid production rates which are expected.

Additionally, Bass is evaluating onshore projects close to its existing projects and infrastructure in Indonesia. The company anticipates adding to its portfolio during the calendar year.

Shares in Bass plunged 20% in late afternoon trade to A$0.004.

Lorna has more than 10 years experience as a finance journalist and editor. She has written for an array of industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has covered a myriad of small and large cap ASX and dual-listed stocks.