Bass Oil Ltd (ASX:BAS) has completed its final payment of $770,000 plus interest to Cooper Energy Ltd (ASX:COE) for its acquisition of a 55% operator interest in the Tangai-Sukananti licence in the prolific South Sumatra Basin of Indonesia.
The milestone delivers Bass unencumbered ownership of its interest in the field, ensures it is now debt-free and maintains its momentum to drill the first development well – Bunian 5 - this October.
This will focus on doubling output from the Tangai field to 1,400 barrels of oil per day (bopd).
Completion of the final instalment follows a series of staged payments made by Bass to Cooper under the $2.27 million acquisition transaction and agreed schedule for deferred acquisition costs.
Removal of the final component of debt assists with the active evaluation and negotiation on several onshore and offshore Indonesian opportunities, as the company remains focused on adding additional prospective oil properties to its portfolio during 2019.
As of July 30, the Tangai-Sukananti KSO was producing on average 632bopd from four wells at the project and has net 2p oil reserves of 0.602 million.
Bass has generated $631,945 in new funding from both a share placement and a non-renounceable rights issue.
Under the offer, eligible shareholders were invited to subscribe for one new share for every two shares held at an issue price of 0.2 cents and one free attaching option for every two new shares subscribed or issued.
Bass managing director Tino Guglielmo thanked shareholders at the time for their support and participation.
He added: “The rights issue … will assist with the repayment of Cooper borrowing US$500,000 by July 31, 2019, drilling of up to two low-risk Bunian development wells and other business development initiatives.”