An extended production test (EPT) carried out by energy explorer Bass Oil (ASX:BAS) has posted flowrates of 4.1MMcfpd and 988 barrels of condensate.
Bass Oil’s geotechs have indicated the gas has low impurity levels below 4.5% carbon dioxide (natural gas, for all intents and purposes, is methane.) Laboratory tests will confirm this for sure.
However, it’s not just gas the company has its eyes on – the liquids (condensate) production is also above expectations. “[That] could significantly increase the economic value of the Kiwi discovery,” Bass wrote on Tuesday.
The condensate to gas ratio (CGR) for the project is over 200Mbbl of condensate for every 1MMcfpd.
Gas flows are about what geotechs were expecting – a fairly quick path to confirmation, given that Kiwi-1 was perforated for an ETP only 3 days ago.
One thing to note: “condensate handling and storage limitations have restricted the ability to obtain higher gas flow rates from the well,” the company reported.
The EPT will continue until “sufficient information is gathered” to determine the size of the reservoir, and then it will be shut in for pressure build up. The data from that exercise will further help Bass come to a resource estimate.
“It is an exciting time for Bass,” company chief Tino Guglielmo said.
“The results have far exceeded our expectations for the well with hydrocarbon liquids flowing at multiples of internal projections and very low levels of impurities in the gas stream.
“The EPT has highlighted the reservoir’s potential to be a major source of future revenue for the Company.”
The market, clearly, is liking this data. Bass Oil shares jumped 40% to 10.5cps in the first half hour of trade.
That was enough to erase bass Oil’s YoY losses, steeper than -30%, on Tuesday morning. Missed returns to shareholders over the last 12 months pared to only -4.5% YoY by 10.20am Sydney time.
BAS last traded at 7.5ps.