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Highlights

  • Bass Oil shares rose 2% to AUD 0.051 on 24 February 2026, following news of a major funding injection.
  • The company received a AUD 3.5 million grant from the South Australian Government’s Gas Initiative program.
  • Funding is specifically earmarked for pipeline construction to connect the 100%-owned Kiwi gas field to existing Cooper Basin infrastructure.
  • The grant serves as a "validation of significance" for the Triassic gas play in the northern Cooper Basin.
  • Bass continues to explore further financing options, including active farm-in discussions with interested parties.

Bass Oil Limited (ASX:BAS) saw a positive shift in its share price today, advancing 2% to AUD 0.051 during the 24 February 2026 trading session. The move comes as the company continues its favourable trajectory, with the stock now holding a 60% gain over the past year. The catalyst for today's investor interest was the announcement of a multi-million dollar non-dilutive funding boost aimed at commercialising its flagship gas assets.

Strategic Grant Validates Kiwi Gas Potential

Bass Oil, which holds a 100% interest in the Kiwi liquids-rich gas project (PRL 245), has been awarded a AUD 3.5 million grant through the South Australian Government’s Gas Incentive Grant program. This program is designed to bolster state gas supplies by supporting projects capable of coming online by the end of 2028.

The funding is a critical "cornerstone" for the project, providing the necessary capital to begin pipeline construction. This infrastructure will bridge the gap between the Kiwi gas field and the broader Cooper Basin infrastructure network, a vital step for moving product to market.

Managing Director Tino Guglielmo described the grant as a "significant milestone," noting that it validates the technical and economic importance of the Triassic gas play. He highlighted South Australia's role as a supportive jurisdiction for energy developers looking to expand the state's resource base.

Operational Momentum and Commercial Flow Rates

The funding follows highly successful production testing at the Kiwi 1 well in late 2024. During these tests, the project demonstrated its commercial potential by achieving:

  • Gas production rates of 4.1 million cubic feet per day (mmcfd).
  • Condensate production of 988 barrels per day (bcpd).
  • Strong flowing wellhead pressure of 1585 psi.

These rates were achieved even while being limited by on-site condensate storage capacity, suggesting a robust reservoir that could yield high-value liquids alongside traditional gas sales.

Financing the Future: Farm-in Opportunities

While the AUD 3.5 million grant covers a substantial portion of the connection costs, Bass Oil is proactively securing the remainder of the project’s capital requirements. The company confirmed it is currently in discussions with several parties who have expressed interest in a farm-in arrangement.

A farm-in would allow a partner to earn equity in the project in exchange for funding a portion of the development costs, further de-risking the project for Bass Oil shareholders while maintaining the company’s momentum toward first gas.

Expanding the Cooper Basin Footprint

Beyond the Kiwi project, Bass Oil maintains a majority interest in eight permits within the Cooper Basin, including the 100%-owned Worrior and Padulla oil fields. This latest funding success strengthens the company’s balance sheet and operational focus as it transitions from a pure oil producer to a diversified gas and liquids player.

The company has pointed investors toward its recent December Quarterly report for deeper technical data on the Triassic play, which it believes could open a valuable new frontier in the northern Cooper Basin.

Investor Takeaway

Today’s price movement reflects cautious optimism as Bass Oil moves from the "exploration and testing" phase into "infrastructure and development." The receipt of government funding is a strong third-party endorsement of the project's viability.

 With a significant portion of the connection costs now covered and active farm-in talks underway, the pathway to commercial production—and the associated cash flow from gas and condensate sales—is becoming increasingly clear.

Frequently Asked Questions (FAQs)

  1. Why did Bass Oil (ASX:BAS) shares rise on 24 February 2026?

The stock rose 2% following the announcement that the South Australian Government awarded the company a AUD 3.5 million grant to fund the pipeline connection for the Kiwi gas project.

  1. What is the Kiwi Gas Project?

Kiwi is a 100%-owned, liquids-rich gas project located in the Cooper Basin (PRL 245). Recent tests showed commercial flow rates of 4.1 mmcfd of gas and nearly 1,000 barrels of condensate per day.

  1. How will the AUD 3.5 million grant be used?

The funds are specifically designated for the construction of a pipeline to link the Kiwi gas field to existing infrastructure in the Cooper Basin, targeting a production start by late 2028.