Small cap oil producer Bass Oil Ltd (ASX:BAS) has shown that gas flow rates from its Kiwi-1 well in South Australia’s Cooper Basin are on-target with expectations, while condensate yields have gone beyond what the company expected, according to an Extended Production Test (EPT) completed on the well.
According to the test, gas impurity levels at Kiwi-1 have a CO2 content of 5% – which came in lower than expected – as well as insignificant H2S, and Condensate to Gas Ratio (CGR) set at 235 barrels per million standard cubic feet – this being more than 10 times pre-test expectations.
Bass said that with these results, over 200,000 barrels of condensate would be co-produced and available for sale at prices equivalent to light sweet crude oil, for every billion cubic feet (BCF) of gas recovered from the reservoir.
Kiwi-1’s sampling program was completed successfully, and gas condensate samples are in
transit to the laboratory for a full compositional analysis.
Managing Director Tino Guglielmo said the testing work had gone beyond expectations for the well.
“We are incredibly excited with the ongoing success of the Kiwi-1 Extended Production Test,” he said.
“The EPT flowing survey has reinforced our view of Kiwi’s potential for being a significant commercial discovery for Bass,” he said.
“It’s substantial liquids content coupled with the value of the gas resources makes it a potentially very valuable opportunity for future revenue generation.
“The team is working diligently to assess the results and commercialisation timelines: we look forward to announcing these in due course.”
The market seemed happy with the new, and by 11:25 AEST, Bass shares were trading at 12 cents: a rise of 14.29% since the market opened.