Bass Oil Ltd (ASX:BAS) is encouraged by strong production from the Tangai-Sukananti joint venture in Indonesia, which produced an average of 755 barrels of oil per day for July, the second-highest month on record.
July production for the JV totalled 23,400 barrels of oil with Bass' share being 12,870 barrels while JV oil sales totalled 23,622 barrels, or 12,992 barrels net to Bass.
The average monthly realised oil price for July was US$61.26 compared with a monthly average oil price of US$61.01 per barrel recorded in June with the fields continuing to generate positive cash contributions to the business with operating costs at US$20 per barrel.
Bass expects to double production with the Bunian 5 development well due to spud in October.
During July, a well service rig was mobilised to the site to carry out pump repairs at Bunian 1 and Tangai 1 with both wells returned to production.
The team in Indonesia has sourced and contracted a workover rig to perform the remaining well work, which includes Tangai 3 pump repair, Bunian 4 workover and Tangai 4 conversion to water injector, which will begin in early September.
Bass has received tenders for the provision of a 750 horsepower capacity drilling rig for the drilling of Bunian-5 and the team in Jakarta has negotiated and finalised contract terms and conditions with the preferred tenderer.
The contract award recommendation has been submitted to Pertamina and is awaiting approval with the aim being to drill the Bunian 5 as soon as the rig is available, which is now likely to be October.
Bunian 5 is expected to take up the remaining available production capacity of the Tangai-Sukananti field facilities as well as increasing developed reserves.
Bass is progressing evaluations and negotiations aimed at securing one or more onshore Indonesian acquisition targets, particularly those closest to its existing Sumatran oil production infrastructure as the company looks to add additional oil properties to its portfolio.