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Bass Oil Ltd (ASX:BAS) has convinced investors that its ongoing acquisition of the Vanessa hydrocarbon field in the South Australian Cooper Basin is value for money, given its now allowed Bass to ink a three-year gas supply deal to Origin Energy (ASX:ORG).
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While no direct monetary value was named in Bass’s Monday disclosure, the company did point out that, with the binding deal set “at pricing” – in other words, the wholesale cost of gas – Bass’s deal with Origin now allows it to fully commercialise the Vanessa field.
Pertaining to licence PEL182, Bass’s MD Tino Guglielmo said that within the boundary lies “a significant gas resource contained within the deep coals” and it’s the further access to, and extraction of, those gassy coals that underpins the future fate of Vanessa.
But what this Week 50 story really reflects, perhaps, is a win for a fairly quiet energy nanocap in the these-days-now-overlooked oil and gas explorer sector (though, Bass Oil has perhaps always stood out given it has a sane amount of shares on issue at 290.5 million. Compare that to Melbana.)
The news on Monday brings BAS 1Y returns to +40% for investors, and it’s in the difference between Monday’s intraday share volume turnover and that of the four-week average, which really evidences just how out-of-the-blue this upswing has been.
As at 1.30pm AEDT on Monday the company had seen over 31 million of its shares trade hands. The four-week average, for comparison, is just 143K. But there’s another way to tell that story: Simply look at its line chart.
BAS last traded at 7.4cps.
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