Bass Oil reveals significant gas discovery in Cooper Basin
An independent resource report on Bass Oil’s permit has identified potential gas in place of 21Tcf along with 845MMbbls in place of condensate/oil.
Oil producer Bass Oil (ASX: BAS) has made a significant gas discovery at its PEL 182 permit in South Australia’s Cooper Basin.
The company engaged independent geological experts Fluid Energy Consultants to undertake a deep coal gas prospective resource report, which quantified the gas potential contained within Bass’ 100% owned and operated permit at a “best estimate” of 21 trillion cubic feet of gas in place, along with accompanying 845 million barrels of condensate/oil in place.
Bass managing director Tino Guglielmo called the discovery a “very exciting development”.
“At a time when the domestic has market continues to face huge challenges meeting demand, this new potential gas resource represents a credible material contributor of gas to the domestic market.”
“A new gas resource of this kind is able to be commercialised efficiently due to the mature infrastructure of the Cooper Basin. Whilst we will progress this opportunity with vigour, we are also conscious of maximising the benefit to our shareholders,” Mr Guglielmo added.
Moolion East pinpointed as ideal area for testing
The Moolion East deep coal prospect, containing 3.8Tcf of gas in place and with an assessed prospective resource of 658Bcf plus associated liquids, has been identified as the ideal area to test the play via a pilot horizontal well or wells.
Oil and gas major Santos (ASX: STO) had previously drilled the Moolion East-1 well searching for conventional hydrocarbons but was unsuccessful. However, the well intersected a significant thickness of deep coal in the Permian section, which is the target of this play and study.
In its statement today, Bass said it planned to conduct further studies to identify the best commercialisation strategies.
The company will also consider “appropriate mechanisms to progress this opportunity including self-funding, farm-out, and third-party investment”.
Deep coal gas a potential new source for domestic market
Bass believes this gas from deep coals, lying below 2,500m, represents a new significant gas play in the Cooper Basin and could be a potential new material source of gas for the Australia’s domestic market.
Nearby, Santos has been working on commercialising these deep coals and is currently trialling horizontal drilling and fracking of the Beanbush-3 well adjacent to Bass’ PEL 182, in the same geological setting and on trend in the Patchawarra Trough.