Oil production at Tangai-Sukananti KSO jumps by 60%

By Romel S. Gurky

ASX-listed Bass Strait Oil Company Limited said that recent production optimization activities at the Tangai-Sukananti KSO, South Sumatra Basin, have increased average daily oil production by more than 60 percent to over 800 bopd (on a 100% basis) from 500 bopd as previously reported.

The share of production accruing to Bass is now some 450 barrels of oil per day, the company said in a statement on Thursday.

In October 2016, Bass announced the landmark acquisition of Cooper Energy?s 55 percent operated interest in the Tangai-Sukananti production assets in Indonesia.

Bass said the resultant increase in production will generate an immediate increase in free cash flow flowing through to Bass given that the effective date of the transaction is October 1, 2016.

Bass said it is currently working through the commercial and regulatory processes to achieve transaction completion, expected in late January 2017 following a meeting of Bass shareholders.

The company said the acquisition will transform Bass into a SE Asia-focused oil and gas production company and provide a solid platform for growth via additional low-cost acquisitions. Bass also notes there are multiple low-cost and low-risk development opportunities within the Tangai and Bunian oil fields which the company is currently evaluating.

Bass Executive Director, Tino Guglielmo said ?The production optimization program has achieved a most pleasing outcome and is the result of the good work from the team in Jakarta. The increased production is expected to deliver a substantial increase in the free cash flow generated from this asset, enhancing its value to Bass.?

Bass said the transaction is subject to conditions such as the conduct of a capital raising, regulatory and Joint venture consent and approval of existing Bass shareholders at a General Meeting which is expected in late January 2017.

Editing by Reiner Simanjuntak