Investor Presentation - April 2024
Released
Released
Announcement PDF
BASS OIL
Capital Raising Presentation
April 2024
ASX:BAS
www.bassoil.com.au
DISCLAIMERS AND COMPETENT PERSON’S STATEMENT
This presentation is issued by Bass Oil Limited (ASX:
BAS) (Bass, or the Company) in relation to a
proposed placement of fully paid ordinary shares in
the Company (New Shares) to eligible institutional,
sophisticated or professional investors (Placement),
and Share Purchase Plan of New Shares to all eligible
shareholders of the Company (Share Purchase Plan,
and together with the Placement, the Offer). The Offer
is not underwritten. The Company and the Lead
Manager reserve the right to withdraw the Offer or
vary the Offer.
This presentation is not a prospectus, disclosure
document or offering document under Australian law
or under any other law. It is for informational purposes
only. This document does not constitute, and should
not be construed as, an offer to issue or sell or a
solicitation of an offer or invitation to subscribe for,
buy or sell securities in Bass.
Any material used in this presentation is only an
overview and summary of certain data selected by the
management of Bass. The presentation does not
purport to contain all the information that a
prospective investor may require in evaluating a
possible investment in Bass nor does it contain all the
information which would be required in a disclosure
document prepared in accordance with the
requirements of the Corporations Act and should not
be used in isolation as a basis to invest in Bass. This
presentation should be read in conjunction with Bass’
periodic and continuous disclosure announcements
which
are
available
at
https://www.bassoil.com.au/2023-asxannouncements-1
and
at
www.asx.com.au.
Recipients of this presentation must make their own
independent
investigations,
consideration
and
evaluation of Bass. Bass recommends that potential
Capital Raising Presentation – April 2024
investors consult their professional advisor/s as an
investment in Bass is considered to be speculative in
nature. Statements in this presentation are made only
as of the date of this presentation unless otherwise
stated and the information in this presentation
remains subject to change without notice. Reliance
should not be placed on information or opinions
contained in this presentation.
To the maximum extent permitted by law, Bass and its
related bodies corporate and affiliates, and their
respective directors, officers, partners, employees,
agents and advisers (together, the Company Parties)
and the Lead Manager, its respective related bodies
corporate and affiliates, and their respective directors,
officers, partners, employees, agents and advisers
(together, the Lead Manager Group) each expressly
disclaim all liability (including, without limitation, any
liability for fault or negligence) for any direct or indirect
loss or damage which may be suffered by any person
in relation to, and take no responsibility for, any
information in this presentation or any error or
omission therefrom, and make no representation or
warranty, express or implied, as to the currency,
accuracy, timeliness, reliability or completeness of the
information contained in this presentation. The Lead
Manager Group has not caused or authorised the
issue, submission, dispatch or provision of this
presentation, nor do they make any recommendation
as to whether any potential investor should participate
in the offer of New Shares. The Lead Manager Group
does not make and does not purport to make any
statement in this presentation and there is no
statement in this presentation which is based on any
statement by the Lead Manager Group. Further, no
member of the Lead Manager Group accepts any
fiduciary obligations to or relationship with any
investor or potential investor in connection with the
Offer or otherwise. Members of the Lead Manager
Group may have interests in the securities of the
Company, including being directors of, or providing
investment banking services to, the Company.
Further, they may act as a market maker or buy or sell
those securities or associated derivatives as principal
or agent.
2
DISCLAIMERS AND COMPETENT PERSON’S STATEMENT
This
presentation
contains
“forward
looking
statements” concerning the financial condition, results
of operations and business of Bass. All statements
other than statements of fact or aspirational
statements, are or may be deemed to be “forward
looking statements”. Often, but not always, forward
looking statements can generally be identified by the
use of forward looking words such as “may”, “will”,
“expect”, “intend”, “plan”, “estimate”, “anticipate”,
“continue”, “outlook”, and “guidance”, or other similar
words and may include, without limitation, statements
regarding plans, strategies and objectives of
management, future or anticipated production or
construction commencement dates and expected
costs, resources or reserves, exploration results or
production outputs. Forward looking statements are
statements of future expectations that are based on
management’s current expectations and assumptions
and known and unknown risks and uncertainties that
could cause the actual results, performance or events
to differ materially from those expressed or implied in
these statements. These risks include, but are not
limited to price fluctuations, actual demand, currency
fluctuations,
drilling
and production results,
commercialisation reserve estimates, loss of market,
industry competition, environmental risks, physical
risks,
legislative,
fiscal
and
regulatory
developments, economic and financial market
conditions in various countries and regions, political
risks, project delay or advancement, approvals and
cost estimates. Except to the extent required by law,
the Company has no intention to update or revise
forward-looking statements, or to publish prospective
financial information in the future, regardless of
whether new information, future events or any other
factors affect the information contained in this
presentation. Past performance information given in
Capital Raising Presentation – April 2024
this presentation is given for illustrative purposes only
and should not be relied upon as (and is not) an
indication of future performance.
The information contained in this report regarding the
Bass Oil Limited reserves and contingent resources is
based on and fairly represents information and
supporting documentation reviewed by Mr Giustino
Guglielmo who is an employee of Bass Oil Limited
and holds a Bachelor of Engineering (Mech). He is a
member of the Society of Petroleum Engineers (SPE)
and a Fellow of the Institution of Engineers Australia
(FIEAust) and as such is qualified in accordance with
ASX listing rule 5.4.1 and has consented to the
inclusion of this information in the form and context in
which it appears.
Under the SPE PRMS guidelines, “Reserves are
those quantities of petroleum anticipated to be
commercially
recoverable
by
application
of
development projects to known accumulations from a
given date forward under defined conditions”. Net
Entitlement Reserves are the reserves that Bass has
a net economic entitlement to. That is, a share of cost
oil and profit oil that Bass is entitled to receive under
the KSO signed with the Indonesian government
body, PT Pertamina. Contingent Resources are
“those quantities of petroleum estimated, as of a given
date, to be potentially recoverable from known
accumulations by application of development projects,
but which are not currently considered to be
commercially recoverable owing to one or more
contingencies”.
accumulations by application of future development
projects. The estimated quantities of petroleum that
may potentially be recovered by the application of a
future development project(s) relate to undiscovered
accumulations. These estimates have both an
associated risk of discovery and a risk of
development. Further exploration appraisal and
evaluation is required to determine the existence of a
significant quantity of potentially recoverable
hydrocarbons.
In accordance with ASX Listing Rule 5.43 the
Company confirms that references to prospective
resources have previously been announced
(16/11/2022 and 18/04/2024). The Company confirms
that it is not aware of any new information or data that
materially affects the information included in this
announcement and that all the material assumptions
and technical parameters underpinning the estimates
in this announcement continue to apply and have not
materially changed.
Prospective Resources are those quantities of
petroleum estimated, as of a given date, to be
potentially
recoverable
from
undiscovered
3
EXECUTIVE SUMMARY
Strategically aligned growth capital injection via equity raising
• Bass Oil Limited (Bass, BAS, the Company) is an Australian-listed oil producer that holds a majority interest in eight
Company Overview
permits in the Cooper Basin (Australia) including the 100% owned Worrior and Padulla oil fields and a 55% interest in a
South Sumatra Basin (Indonesia) KSO. The Company is debt free and committed to creating value by leveraging the
competitive strengths of its team, operating capability, reputation, and relationships in both Australia and Indonesia.
• Bass is building towards a substantial onshore Australian and Indonesian oil & gas business with a clear focus on
expanding production in the Cooper Basin and in South Sumatra.
• Rationale: Bass is pursuing its growth strategy in becoming a mid-tier oil and gas producer, and entrance to the tight
east-cost gas market. Funds raised will support the execution near-term growth opportunities.
Growth
Opportunities
Capital Raising
• Immediate Focus: Completion of an extended production test (EPT) for Kiwi-1 to confirm reserves and economic
potential with field work to commence as soon as possible. A significant potential ‘company making’ opportunity also lies
in the deep Permian coal gas play in Bass’ 100% owned PEL 182. Bass will continue to plan and develop its strategy to
commercialise PEL 182 with input from the recently announced SLB technical study.
• The Company is raising up to ~$3.1 million via a Placement and Share Purchase Plan.
• The Placement will settle in a single tranche.
• Bass has already secured ~$1.1 million of commitments in the capital raising predominantly from a Tier 1 institutional
investor as at the date of this presentation.
Use of Funds
• Funds will be used for the Extended Production Test (EPT) for Kiwi 1, further studies for the PEL 182 deep Permian coal
seam gas opportunity and other high-value oil projects.
Capital Raising Presentation – April 2024
4
BASS OIL | CORPORATE SNAPSHOT
Snapshot
Ownership Summary
ASX Code
Shares (Ordinary)
BAS
Options (Listed)
Directors and Staff
10%
268,451,578
Options (Unlisted)
Institutional
and Corporate
18%
132,340,7891
Share Price
$0.077
Market Capitalisation
$20.7m
Enterprise Value
$19.2m
Net Cash
$1.5m
Total No. Shareholders
1886
Share Price
Retail
72%
0.16
4,000
0.14
3,500
0.12
3,000
0.10
2,500
0.08
2,000
0.06
1,500
0.04
1,000
0.02
500
0.00
Apr-23
Jul-23
Oct-23
Volume
Jan-24
0
Apr-24
Share Price
1The Company has 132,340,789 share options on issue, exercisable on a 1:1 basis for 132,340,789 ordinary shares of the Company at an exercise price of A$0.12 and an expiry date of 30 September
2024.
Capital Raising Presentation – April 2024
5
RECENT OPERATIONAL HIGHLIGHTS
Positioned to capitalise on growth pipeline following record revenue and profitability
Full year profitability and positive cash flow milestones achieved in CY23 through record revenue and
sustained high oil prices.
First full year of production from Bass’ two cash generating units, the Cooper Basin and Indonesia.
Bass recorded a 13.8% increase in EBITDA to $2.3 million2 and recorded a Net Profit After Tax of $0.42 million.
Bass produced Net Entitlement Oil of 77,090 barrels in FY23, up 34% on the previous year.
Bass has formally engaged global technology company, SLB, to perform a technical study seeking to identify the
pathway to commercialisation of Bass’ deep coal resources in the 100% owned PEL 182 (Cooper Basin). This
follows the previously announced Prospective Resource Study providing a “best estimate” of 21 TCF gas in
place3.
All regulatory approvals received and long lead equipment available for Kiwi 1 Extended Production Test (EPT).
10-year extension of the Tangai Sukananti KSO. This extension was the driver for a 17% increase in reserves
net of production. Bass was also able to renegotiate improved fiscal terms for the KSO for the period of the
extension.
1Please refer to ASX Announcement, “Annual Report for the financial year ended 31 December 2023”, released 27 March 2023 for further information.
2Converted from USD to AUD at 0.66:1.
3Please refer to ASX Announcement, “Deep Coal Commercialisation Study Underway”, released 18 April 2024 for further information
Capital Raising Presentation – April 2024
6
CAPITAL RAISING INVESTMENT HIGHLIGHTS
Funding expansion into the Australian east coast gas market
In CY23, Bass achieved significant milestones of full year profitability and
positive cash flow through record revenues.
Capital raise funding will further enable Bass to complete Kiwi 1 and
perform an extended production test (EPT) to confirm reserves and
economic potential - field work to commence as soon as possible.
Recent mapping utilising 3D seismic has upgraded Kiwi Contingent
Resources:
Kiwi 1
Moolion East 1
Mean resource of 5.24 BCF in Kiwi ‘structure’.
Identified an upside 3C resource of 11.5 BCF1.
Bass northern permits (PEL 182, Ex PEL 100, Ex PEL 90k and Ex PEL
110) host a significant Triassic gas opportunity:
Success at Kiwi will pull infrastructure to the northern Cooper Basin,
connecting other plays between Kiwi and PEL 182 deep coals.
Bass has formally engaged global technology company, SLB, to
perform a technical study to identify the most effective strategy to
commercialise this significant deep coal gas resource in the PEL
182 permit. The study is due to be completed in 2024.
Growth Assets
Gas Play
Cash Generative Assets
Oil Play
Cooper Basin asset locations and connections
Deep coal play recognised by Santos and others as the potential
renaissance of the Cooper Basin.
1Please refer to ASX Announcements, “2023 Reserves and Contingent Resources” and “Kiwi 1 Extended Production Test (EPT) Update”, released 15 March 2024 and 26 September 2023, respectively
for further information
Capital Raising Presentation – April 2024
7
KIWI GAS | COMMERCIALISATION STRATEGY
A successful EPT at Kiwi will confirm commerciality and provide a clear pathway to the gas market
Bass team has previously assessed the Kiwi gas discovery to contain:
Mean resource of 5.24 BCF1.
Identified an upside 3C resource of 11.5 BCF1.
Typical NPV of gas reserves in ground of $2m-3m / BCF.
The geoscience team also identified the potential for other traps, or
prospects, on trend with Kiwi that, as a result of a successful test at Kiwi,
may be significantly upgraded.
Bass in-house team are working to quantify:
The cost and feasibility of connection into the Cooper Basin gas
gathering network; and,
The economic potential of leads on trend with Kiwi towards PEL 182.
The results are expected to be known within 60 days of commencement
of the test with commercial gas offtake agreements to be negotiated
thereafter.
PRLs 245 and 246 (Ex PEL 90K) location map
1Please refer to ASX Announcements, “2023 Reserves and Contingent Resources” and “Kiwi 1 Extended Production Test (EPT) Update”, released 15 March 2024 and 26 September 2023, respectively
for further information
Capital Raising Presentation – April 2024
8
DEEP COAL COMMERCIALISATION OPPORTUNITY
Investment follows previously announced Deep Coal Gas Prospective Resource study
The deep Permian aged coals have previously been recognised to be a
potential major new source of gas in Australia.
Gas in the Permian aged coals of the Toolachee, Epsilon and Patchawarra
formations has flowed at potentially commercial rates after fracture
stimulation.
Bass has recently formally engaged SLB to perform a technical study that
will seek to identify the potential commercialisation of Bass’ deep coal
resources in the 100% owned PEL 182 in the Cooper Basin1.
This opportunity is in line with the Santos led efforts to commercialise this
deep coal resource in the nearby Beanbush gas field. Santos completed
drilling and fracture stimulation of the Beanbush 3 horizontal well with public
results of the completion report providing valuable data and a key input into
the SLB technical study.
Investment in this stage follows the previously announced Deep Coal Gas
Prospective Resource study which quantified the gas potential contained in
PEL 182 at a “best estimate” of 21 TCF of gas in place, along with and
accompanying 845 million barrels of condensate in place2.
Results of the geomechanical study are expected mid-year, and the Rapid
Resource Assessment results are expected in October.
1Please refer to ASX Announcement, “Deep Coal Commercialisation Study Underway”, released 18 April 2024 for further information
Cooper Basin Permian edge location
Total net Permian coal thickness
in the Patchawarra Trough
2Please refer to ASX Announcements, “Significant Gas Resource Identified in PEL 182”, released 16 November 2022 for further information
Capital Raising Presentation – April 2024
9
INDICATIVE WORK PROGRAM
Kiwi 1 EPT and PEL 182 Deep Coal Study
Action / Event
Expected Completion
Rig mobilisation to Kiwi-1
May 2024
Complete Kiwi-1 Test and analyse results
End June 2024
Commence Deep Coal Study
April 2024
Results of the Geomechanical study available
June 2024
Results of the Rapid Resource Assessment / Economics
October 2024
Capital Raising Presentation – April 2024
10
WARRA RIDGE PROSPECTIVE OPPORTUNITY
Preliminary assessment indicates significant Oil Prospective Resource
As part of the prospectivity review of all recently acquired permits, Bass has
identified a potential oil trend in the southern Cooper Basin along the Warra
ridge in the Company’s 100% owned PRLs 231-233.
The Warra ridge is adjacent to Bass’ Worrior oil field and south of
numerous other producing oil fields.
Bass has identified the Tyrell and Flint prospects utilising the Westeros 3D
seismic survey.
The Tyrell prospect is currently under detailed evaluation, however
preliminary assessment indicates a Prospective Resource of over 2 million
barrels of oil in the McKinlay, Namur and Murta formations1.
Once the prospects are fully evaluated, they will likely be offered to
potential farm-in partners for drilling in the 2025 drilling program.
PRLs 231-233 (Ex PEL 93) location map
1Please refer to ASX Announcement, “Annual Report for the financial year ended 31 December 2023”, released 27 March 2023 for further information.
Capital Raising Presentation – April 2024
11
RESOURCES & RESERVES STATEMENT
Developed and Undeveloped Resources & Reserves, as at 31 December 2023
Field Reserves (MMbbl)1
1P (Proved)
2P (Proved & Probable)
3P (Proved, Probable &
Possible)
Australia
0.158
0.366
0.669
Indonesia
0.189
0.439
0.914
Total Reserves
0.347
0.805
1.583
Field Contingent Resources (MMbbl)
1C
2C
3C
Australia
0.401
1.177
3.232
Indonesia
0.031
0.052
0.677
Total Resources
0.432
1.229
3.909
1Please refer to ASX Announcement, “2023 Reserves and Contingent Resources”, released 15 March 2024 for further information
Capital Raising Presentation – April 2024
12
CAPITAL RAISE INFORMATION
OFFER STRUCTURE OVERVIEW
$3.1 million via Private Placement and Share Purchase Plan
Offer Size &
Structure
Pricing
Equity Raising
Details
Ranking
Lead Manager
• Raising approximately up to $3.1 million via issuing ~44.29 million new shares (“New Shares”) consisting of:
• $1.1 million Private Placement issuing ~15.7 million New Shares (“Placement”).
• Up to $2.0 million Share Purchase Plan (“SPP”) issuing ~28.6 million New Shares.
• Issue Price of $0.07 per security represents a:
• 9.1% discount to the last traded price on 16 April 2024 (A$0.077)
• 15.8% discount to the 5-day VWAP price (A$0.083)
• Bass will issue ~44.3 million New Shares under the capital raising representing ~16.5% of existing shares on issue.
• New Shares issued will rank equally with existing ordinary shares from allotment.
• Adelaide Equity Partners Limited (“AEP”) will act as the Sole Lead Manager to the Offer.
Capital Raising Presentation – April 2024
14
SOURCES AND USES OF FUNDS
Source of funds
A$m
Placement
1.1
Share Purchase Plan
2.0
Total sources
3.1
Use of funds
A$m
Kiwi-1 Extended Production Test (EPT)
1.4
PEL 182 Deep Permian Coal Seam Gas Studies
0.6
Other high-value oil development opportunities
1.0
Expenses related to the Capital Raise
0.1
Total uses
3.1
Capital Raising Presentation – April 2024
15
PRO-FORMA CAPITAL STRUCTURE
Indicative Capital Structure
Existing Shares on Issue
M
268.4
Pre-raise Market Capitalisation
A$m
20.7
New Shares under Placement
M
15.7
New Shares under SPP
M
28.6
Pro-Forma Basic Shares on Issue
M
312.7
Indicative Pro-Forma Market Cap (At Issue Price)
A$m
21.9
Existing Cash & Proceeds from Equity Raising
A$m
4.6
Implied Enterprise Value (at Issue Price)
A$m
17.3
Capital Raising Presentation – April 2024
16
INDICATIVE OFFER TIMETABLE
Event
Record Date for SPP
Announcement of Placement result and SPP announcement
SPP Offer opens and booklet made available
Settlement of Placement Shares
Allotment and trading of Placement Shares
SPP Offer closes
Announcement of SPP results
SPP Issue Date and lodgment of Appendix 2A
2024
7:00pm (AEST) Thursday, 18 April
Friday, 19 April
9:00am (AEST) Tuesday, 23 April
Friday, 26 April
Monday, 29 April
5:00pm (AEST) Friday, 10 May
Wednesday, 15 May
Friday, 17 May
Quotation date
Monday, 20 May
SPP Shares commence trading on normal basis
Monday, 20 May
Despatch date
Tuesday, 21 May
Capital Raising Presentation – April 2024
17
SUPPLEMENTARY
INFORMATION
COOPER BASIN | PORTFOLIO OVERVIEW
Diverse portfolio in the renowned Cooper Basin
No. of Permits
• 2 Pipeline Licenses (PPLs)
• 5 Retention Licenses (PRLs)
• 1 Exploration License (PEL)
Interest
•
•
•
•
100% interest in PPLs 207 and 221
100% interest in PRLs 188-190, 231-233, and 245-246.
80% interest in PRL 237
74% interest in PRLs 207-209
• Worrior Oilfield (PPL 207)
Key Assets
CY23 Production
•
o PPL 207 covers 6.4 km² and contains the producing Worrior oil field. Worrior has
produced 4.1 million barrels of oil since production commenced in December
2003. The field is located ~50 km Southwest of Moomba in South Australia.
Padulla Oilfield (PPL 221)
o Discovered in 2005, the Padulla Oilfield has cumulatively produced 0.52 million
barrels of oil and is currently producing over 30 barrels of oil per day.
• 40.8 mbbl
• PEL 182:
Growth Initiatives
•
•
Next Steps
o Bass will perform a technical study that will seek to identify the potential
commercialisation of Bass’ deep coal resources in the 100% owned PEL 182 in
the Cooper Basin.
o Potential significant gas potential contained in PEL 182 at a “best estimate” of 21
TCF of gas in place.
Kiwi-1:
o Planning to complete the Kiwi 1 well and perform an Extended Production Test
in the first half of 2024.
Worrior Oilfield (PPL 207):
o Identified potential new oil trend along the Warra Ridge in PRLs 231-233 in the
southern Cooper Basin. Planning to complete evaluation, with drilling as part of
FY25 plan.
Bass Oil Cooper Basin Permits
• Extended Production Test (EPT) at Kiwi 1.
• PEL 182 Deep Coal Commercialisation study commencement.
• Evaluation of PRL 231-233 prospects, and potential offer to potential farm-in partners.
Capital Raising Presentation – April 2024
19
SOUTH SUMATRA BASIN | PORTFOLIO OVERVIEW
Profitable producer in prolific oil and gas region
No. of Permits
• 1 Production License (KSO)
Interest
• 55% interest and operator
• Tangai-Sukananti Oil fields:
o The Company's acquisition of the Tangai-Sukananti KSO in 2017 transformed
Bass Oil into a profitable oil producer in a prolific oil and gas region
o The KSO additionally provides a platform for future growth through low-cost
development opportunities and value-adding bolt-on acquisition.
o Previous modelling of the K reservoir in the Bunian field has identified the
potential to improve recoveries and reduce development costs through the
application of horizontal drilling techniques.
Key Assets
CY23 Production
• 83.6 mbbl
• Procurement and planning have commenced for the drilling of the Bunian 6
development well. Bunian 6 is South-West of Bunian 3, the strongest producer in the
field and has produced more than 1 million barrels of oil to date.
The well is expected spud in the second half of 2024.
The results of Bunian 6 will inform the potential for a significant extension of the Bunian
field to the west. The existence of the westerly extension will likely be tested by the
drilling of the Bunian West 1 well currently planned for the 2025 drilling program. A
drilling success at Bunian West could increase field reserves significantly proving the
3P reserves case.
Growth Initiatives
•
•
Next Steps
• Completion of drilling of the Bunian 6 development well.
Capital Raising Presentation – April 2024
Tangai-Sukananti KSO Location map
20
BASS OIL LIMITED
Tino Guglielmo – Managing Director
tino.guglielmo@bassoil.com.au
+61 3 9927 3000
www.bassoil.com.au
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