Key Highlights

  • Bass Oil reported group net production of 23,944 barrels for the September 2026 quarter, and net entitlement sales of 21,910 barrels, up 24.4 per cent on the June quarter.
  • The Bunian 6 well was brought online on 23 September 2026 at an initial rate of 797 barrels of oil per day, and cash payback of the drilling cost is expected in January 2027.
  • Cash at 30 September 2026 was A$2.07 million, down from A$3.18 million, with no debt.

Bass Oil Limited (ASX:BAS) has reported higher oil production for the September 2026 quarter, with the Bunian 6 well in Indonesia coming online, while its cash balance fell as drilling costs were paid. Group net production was 23,944 barrels, or about 260 barrels of oil per day, and the company reports net entitlement sales to Bass of 21,910 barrels, up 24.4 per cent on the June quarter.

Indonesia's Tangai-Sukananti KSO, in which Bass holds 55 per cent, produced 16,390 barrels net to Bass, with sales of 15,736 barrels and net entitlement after the domestic market obligation of 14,203 barrels. The Cooper Basin Assets at Worrior and Padulla, which are 100 per cent owned, produced 7,554 barrels, about 82 barrels a day, with 99 per cent uptime. Rain-related road closures reduced Cooper Basin Revenue to A$0.94 million.

Sales revenue was A$2.82 million, compared with A$2.70 million in the June quarter, and A$6.67 million for the year to date against A$5.28 million a year earlier. Bass has no hedging in place. The report's pricing figures are partly inconsistent: highlights give an average price of A$139.41 a barrel (US$97.27), while one table labels the US dollar figure as Australian dollars.

Bunian 6

The Bunian 6 drilling rig was released on 7 September and the well was brought online from the M sand on 23 September at an initial rate of 797 barrels of oil per day with a 1 per cent water cut. Field output has stabilised at about 700 barrels a day, up from 250, which the company calculates as a rise from 140 to 385 barrels a day for Bass's share. Cash payback of the drilling cost is expected in January 2027. The effect on reserves and production strategy is still being quantified.

Cooper Basin gas

Recommissioning of the Vanessa gas field is described as on budget and on schedule for start-up by the end of the year. Hydro-testing of the 5-kilometre export pipeline is scheduled for November, and regulatory approval for restart documentation is pending. First gas sales are expected early in the new year. At Kiwi 1, pre-FEED work is being finalised and two tie-in Options will proceed to front-end engineering and design, which the company says is critical to a final Investment decision. Reprocessing of the Dundinna 3D seismic is complete and has identified several structures on the Kiwi trend, with Kiwi North identified as the most significant early result. Prospective resource figures are unrisked and need further appraisal. In PEL 182, Santos plans several further deep coal wells over the next 12 months.

The company said the effect of Bunian 6 on reserves and on its wider Indonesian production strategy has not yet been quantified.

Cash and funding

Bass Oil (ASX:BAS) reported cash at 30 September 2026 of A$2.07 million, down 35 per cent from A$3.18 million, with a further A$5.4 million of restricted cash for rehabilitation. Operating Cash Flow was A$1.169 million, investing outflow was A$2.202 million, mostly Bunian 6 drilling, and the company has no debt. The Appendix 5B estimates two quarters of funding. The report does not state a funding plan, and the funding questions in the form were left blank.

The company notes that the final rehabilitation bond payment of A$54,000 was due on 1 October.

Risks

Bass is exposed to oil prices without hedging, and Indonesian realisations are priced at a discount to Brent through the Indonesian Crude Price. The Vanessa restart depends on regulatory sign-off, the Kiwi project depends on engineering studies and a final investment decision, and the deep coal outcome depends on the Santos-led programme.