The increase from the month of September indicates that the wells continue to perform well with minimal downtime during October.
Total field production for the month for the JV was 21,552 barrels of oil with 11,854 barrels being Bass’ share while oil sales totalled 21,607 barrels of oil for the JV or 11,884 barrels net to Bass.
Positive cash contributions
Average monthly realised oil price for October was US$58.77 compared with a monthly average oil price of US$60.13 per barrel recorded in September.
Tangai-Sukananti KSO fields continue to generate positive cash contributions to the business with field operating costs at around US$20 per barrel.
Monthly production from the Tangai-Sukananti KSO.
Modifications being made
The production facility has been undergoing some modifications to allow for the anticipated increase in production from Bunian 5 well, which is now online while undergoing a production test.
While Bunian 5 remains on test, the field is currently producing, processing and exporting an average of 1,000 bopd.
The team in Indonesia has sourced and contracted a workover rig to perform the remaining well work, which includes the Tangai 3 pump repair, Bunian 4 workover and Tangai 4 conversion to water injector.
Commencement of this work has been delayed to accommodate drilling of the Bunian 5 well with the workover program to begin as soon as possible following the completion of Bunian 5 testing.
Bunian 5 testing
At Bunian 5 the PDSI Rig 20.2/EMSCO/D2-M was mobilised in early September with the well drilled and completed through the month of October.
The well was completed as an oil producer from both primary targets – the K1 Sandstone and the TRM3SS Sandstone.
Production testing started from the TRM 3 sandstone and during the first 12 hours, the well averaged 1,128 barrels of oil per day with a 2% water cut, on a fully open choke with a flowing wellhead pressure of 140 psi.
Since then the well has been choked back to 32/64” for the testing program and has been averaging production of 500 bopd at 2% water cut and a flowing wellhead pressure of 260 psi.
Following completion of the testing of the TRM 3 zone, the K sandstone reservoir will be tested.
All oil produced from the test is being trucked and sold along with all other oil produced from Tangai Sukananti.
This result confirms that the Bunian-5 well is expected to double overall production from the Bunian Field.
Business development opportunities
Bass continues to evaluate and negotiate on a number of onshore and offshore Indonesian opportunities, as the company looks to add additional prospective oil properties to its portfolio.
The active business development program has a three-tiered strategy designed to create and maximise value through:
- Company transforming acquisitions;
- Material growth exploration opportunities, and
- Optimisation of existing mature fields through the application of proven technologies.
Within Indonesia, there are a number of very high impact oil and gas projects that fall into each of these categories that Bass is in an excellent position to be able to acquire.
Bass expects that a combination of these business development opportunities would firmly place the company in the mid-tier/junior ASX listed oil and gas producer sector, ie 2,000-5,000 boepd.
After several years of successful proven Indonesian operatorship, Bass is highly regarded in-country and has formed deep and strong relationships with local operators and is well known by the Indonesian upstream oil and gas regulator.