Bass Oil will accelerate testing at recently-acquired gas assets in the Cooper Basin

Junior energy company Bass Oil has started a feasibility study into oil and gas assets it has picked up from Beach Energy and Cooper Energy.

Bass Oil expects to complete a feasibility study into the commercialisation potential of its Kiwi gas project in the Cooper Basin before the end of the year, hoping to take advantage of the current gas price crunch.

The junior energy company will relocate its headquarters from Melbourne to Adelaide after securing a suite of oil and gas projects from Beach Energy and Cooper Energy earlier this year.

Thos transactions are expected to finalise next month, and Bass has already started evaluating gas development opportunities, with the study work expected to be finished in the fourth quarter of this calendar year.

“Since the company announced the Cooper Basin transactions in July 2021 and March 2022,

Australian gas prices have increased more than 250 per cent on the back of significant shortages in the market,’’ the company told the ASX on Tuesday.

“Bass aims to complete the Cooper Basin transactions in July ... and will acquire a portfolio of prospective oil and gas development and exploration opportunities.

“Specifically, the northern properties are highly prospective for liquids rich gas within and adjacent to the Patchawarra Trough. The area hosts numerous gas fields in Permian and Triassic aged sediments.’’

Bass has started a feasibility study into tying the Kiwi-1 gas well into the Moomba gas network, and is also looking at the viability of doing an extended production test to assess the broader potential of the resource.

Bass managing director Tino Guglielmo said the acquisitions would be “transformative’’ for the company.

“It provides both oil and gas growth opportunities at an opportune time in the commodity cycle,’’ Mr Guglielmo said.

“Given the record gas prices we are seeing in the market, we will ‘fast-track’ our gas commercialisation strategy and in particular, evaluate the upside potential of the Kiwi gas discovery which could offer a prospective resource of more than 24 billion cubic feet of gas.’’

The company said the high gas price “significantly enhances the likelihood of Kiwi Gas Discovery commercialisation or progressing one of the company’s other prospective gas exploration opportunities in the near term.

“Therefore, the Company has accelerated its gas development and exploration endeavours

within the Cooper Basin portfolio.

“Upon the successful conclusion of the study, Bass will concurrently commence project planning activities and commercial discussions with appropriate counterparties to secure gas sales and processing agreements, as required.’’

Bass shares were almost 5 per cent lower in morning trade at 4c, as the ASX 200 dipped sharply.

Originally published as Bass Oil will accelerate testing at recently-acquired gas assets in the Cooper Basin