Bass Oil reports rise in Indonesian oil output ahead of planned well work

Bass Oil ASX BAS Indonesian oil output planned well work Tangai Sukananti
Monthly production at Bass Oil’s Tangai-Sukananti oilfield in Indonesia rose 7% since February despite one oil well remaining shut-in.

Oil explorer and producer Bass Oil (ASX: BAS) has recorded its highest monthly production in six months at its onshore Tangai-Sukananti oilfield in Indonesia.

The company today announced its share of oil production at the south Sumatran joint venture project averaged 740 barrels of oil per day during the month of March, up 7% from February.

Tangai-Sukananti is a KSO (an abbreviation of the Indonesian term ‘kerja sama operasi’ meaning an operation cooperation contract) project, of which Bass has a 55% share.

March oil production volumes totalled 22,957bbl (12,626bbl net to Bass), while oil sales totalled 23,117bbl (12,714bbl net to Bass).

This production result is the highest level reported since the company’s record output last October of 27,795bbl (15,287bbl net to Bass). Since the record was set six months ago, output had fallen each month until getting a boost again last month.

According to the company, this was a “pleasing result” considering the Bunian-1 oil well remains shut in due to a down-hole pump failure.

In addition, oil prices were up 3% to an average monthly realised price of US$62.49 per barrel.

Upcoming field work

Bass said its Indonesian team is currently sourcing a well service rig to perform work including the Bunian-1 pump repair, a workover on the Bunian-4 well and the Tangai-4 conversion to water injector.

It is expecting this work to commence “as soon as possible”.

Bass is also seeking approval from its state-owned partner PT Pertamina to issue a tender for a rig to begin drilling the Bunian-5 well, which is expects will double production from the field.

If this is the case, this doubled production would take up the remaining available capacity of the Tangai-Sukananti facilities, as well as increase developed reserves.

In February, the company had reported a 113% upgrade in 1P (proven) reserves at the field from 930,000bbl to 1.78MMbbl, boosting Bass’ net entitlement reserves by 76% to 505,000bbl.