Bass Oil wraps up acquisition of Vanessa gas field and facility

• Acquisition includes a shut-in gas production well, processing facility.
• Five km gas pipeline connected into existing Cooper Basin transmission network.
• Engineering studies for field re-instatement are underway.
• First gas sales expected by the end of CY26.

Bass Oil (ASX:BAS) is on target to achieve first gas sales from the shut-in Vanessa gas field by year-end after receiving approval for its acquisition from the South Australian Department of Energy & Mining (DEM). This was the last remaining step prior to the transfer of ownership to Bass.

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The June acquisition includes both a production facility and a five-kilometre pipeline connecting to the Cooper Basin transmission network. Bass Oil’s managing director, Tino Guglielmo, told shareholders this is a very important milestone towards the company’s entry into the East Coast gas market.

“Gas market demand and gas pricing remain strong, which means fields such as Vanessa can be run profitably by companies with a capable team and a low-cost structure such as Bass,” Mr Guglielmo explained on Wednesday.

“The team’s focus now turns to bringing Vanessa online as quickly as possible as a first step aimed at growing a new and profitable arm to the business.

“Vanessa is also a key asset to be used in unlocking what we believe may be a company-making gas resource contained within the deep coals in our 100% owned PEL 182,”

The Vanessa facility has a nameplate capacity of 10 million standard cubic feet per day. Vanessa was drilled in CY07 and brought online in CY18 at a rate of 3.5M SCF a day. The well produced 1.1 billion cubic feet over two years.

Detailed planning for the certification and recommissioning of the Vanessa well, facilities, and pipeline continues. GPA Engineering, a well-respected engineering house, has been engaged to assist in this process.

Mr Guglielmo said the finalisation of the Vanessa acquisition provides Bass the opportunity to explore untested conventional and tight gas potential in the Toolachee, Epsilon, and Patchawarra formations accessed in the well.

The company is now set to advance activities to commercialise the deep coal at the site. The Vanessa well penetrated the entire Permian sequence, including the deep coals.

“This location is ideally located to test the potential of the large deep coal resource in PEL 182 without the cost burden of drilling a well,” Mr Guglielmo said.

BAS closed up +8.2%, to 5.3¢. Mkt cap $19.45M.

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