Bass Oil Limited (ASX:BAS) announced on 28 September 2026 that oil production from the Bunian field in Indonesia has reached over 800 barrels of oil per day (100% share), following the commissioning of the Bunian 6 well, exceeding initial expectations.

Business Model and Operational Footprint

Bass Oil Limited is an Australian-listed oil producer. In Australia, the Company holds a majority interest in 14 permits in the Cooper Basin including the 100% owned Worrior and Padulla oil fields. Internationally, Bass holds a 55% interest in an Indonesian Kerja Sama Operasi covering the Bunian field. The Bunian KSO is operated by Bass Oil Sukananti Ltd, with Mega Adhyaksa Pratama Sukananti Ltd holding the remaining 45% interest. The Company is Debt free.

Commodity Dynamics

The Bunian field operates in the Indonesian Upstream oil sector. Oil price levels influence the free Cash Flow generation from the Bunian KSO and the Company's ability to fund growth projects. The Bunian 6 well adds production from the newly discovered M sand reservoir, which is being evaluated for its reserve potential. Infrastructure logistics, including trucking capacity to move produced oil from the field, are described as a current constraint on achieving the field's targeted production rate of 1,000 bopd.

Bunian 6 Well Performance and Production Update

Following completion of the Well Testing programme, Bunian 6 was brought online from the M sand, a newly discovered oil pool, to evaluate its reserve potential. Oil production from the Bunian field has increased to over 800 bopd from 250 bopd prior to commissioning, described as in excess of expectations. Production test results from the TRM3 and K1 zones at Bunian 6 were reported as in line with expectations.

The Bunian Field contains oil at three reservoir levels: the TRM3SS, GRM, and K reservoir. Bunian 6 is located near the CREST of the structure. Initial production from the M sand is expected to increase field production to approximately 1,000 bopd, to be followed sequentially by the TRM3 and K1 reservoirs. The field production target of 1,000 bopd is expected to be achieved after additional trucking resources become available. The Bass team will use data from the drilling and evaluation programme to update reservoir models and quantify reserves and future development opportunities. Bunian 6 was identified as an ideal development location by an integrated field study, which also identified additional drill targets including Bunian West and Bunian Northwest.

Growth Catalysts and Critical Operating Risks

Catalysts include the availability of additional trucking resources to enable the field to reach the 1,000 bopd target, reserve upgrades from updated reservoir models, and the potential identification of further development opportunities at Bunian West and Bunian Northwest.

Key risks include logistical constraints on trucking capacity that may delay achieving the 1,000 bopd production target. Natural reservoir decline, well performance variability, and the sequential production from multiple reservoir levels introduce production risk. Indonesian regulatory and fiscal risks are inherent to KSO operations.