Announcement PDF ASX Announcement Release date: 6 November 2024 Kiwi-1 Test Results Demonstrate Field Commerciality Bass Oil Limited (ASX:BAS) is an Australian-listed oil producer that holds a majority interest in eight permits in the Cooper Basin including the 100% owned Worrior and Padulla oil fields and a 55% interest in a South Sumatra Basin 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. Highlights: • Kiwi is significant asset for Bass with a $36 million After-Tax Net Present Value (ATAX NPV) at a 10% Discount Factor (DCF) from the screening economics performed on the mean contingent resource case using data from the recent flow test • Maximum production rates at Kiwi-1 during the test were limited by condensate storage capacity to 4.1 million cubic feet per day (mmcfd) of gas along with 988 barrels of condensate per day (bcpd) at a flowing wellhead pressure of 1585 psi • Laboratory analysis has confirmed low impurity levels in the gas stream – 5% CO2 and negligible H2S and the high condensate yields • The downhole pressure gauges have been recovered, the data indicates little to no measurable reservoir depletion during the test. The data is undergoing further analysis • An updated estimate of Contingent Resources (2C) contained in the Kiwi gas field is 1.016 million barrels of oil equivalent (boe). At 31 December 2023 Bass total reserves 2P were 0.805 million boe. A successful development at Kiwi will more than double Bass reserves • Bass has commenced working towards a Final Investment Decision (FID) and is currently assessing a number of funding alternatives to bring the asset into full production • Once FID has been achieved the contingent resources 2C can be converted to reserves 2P Bass Oil Limited (ASX:BAS) (“Bass” or the “Company”) is pleased to announce that the results of the recent Kiwi flow test have demonstrated the commerciality of the gas field. The results from recent screening economics for the development of the Company’s 100% owned Kiwi gas discovery outline the significant value of the asset. The ATAX NPV of the Kiwi asset is assessed to be $36 million at a 10% DCF for a capital investment of $16 million. Further details are contained below. The analysis integrated the results from the Kiwi-1 Extended Production Test (EPT) which concluded in September. The test yielded gas flow rates in line with expectations and condensate yields far exceeding the Company’s expectations. As a result of the increased liquids yield, the break-even gas volume for the project is considered to be less than the low side 1C case of 1 BCF. The pressure gauges were recently recovered from the well and indicate little or no measurable reservoir depletion from production during the flow test. The data will be subject to further analysis to Bass Oil Limited ACN: 008 694 817 Level 5, 11-19 Bank Pl., Melbourne 3000 Victoria, Australia T + 61 3 9927 3000 F + 61 3 9614 6533 admin@bassoil.com.au www.bassoil.com.au determine other reservoir parameters. The current estimate of Contingent Resources 2C for the Kiwi field is 1.016 million boe which is over double the Bass 2P reserves of 0.805 million boe reported at 31 December 2023. Bass is currently assessing options to reduce the time to first production. Work has already commenced towards achieving an FID for the project. This includes commercial agreements for transportation, processing and sale of gas and condensate. The Company will also build upon the previously completed engineering scoping study to tie the well into the Cooper Basin gas gathering system. To bring the asset into full production the Company is actively looking at off balance sheet financing initiatives to accelerate the time to first production that are designed to enhance shareholder value. The Company is currently examining the merits of commencing early sales of condensate on a longer duration EPT whilst fast tracking the deployment of gas sales infrastructure. Managing Director, Tino Guglielmo commented: “We are pleased with the economic screening results which demonstrate that the value of Bass 100% owned Kiwi gas field is a multiple of the current market capitalisation of the Company. The substantial liquids content coupled with the value of the gas resources makes Kiwi a very valuable opportunity for future development and revenue generation. The team is working diligently to assess the results and commercialisation timelines. We look forward to announcing these in due course. This is another important milestone in our strategy to become a mid-sized oil and gas producer as the Cooper Basin portfolio provides significant upside potential.’’ Mean Contingent Resource Case: 5 BCF Qi: 5MMscf/d Capex: $16MM (gas network connection) P/I: 2.58 Payback Period: <1 year Project life: 9 years Net Revenue NPV (MM$AU) 10.00% 15.00% Gas 35.3 29.9 Condensate 54.5 47.2 Total 89.8 77.1 BTAX Cash Flow 52.9 44.4 ATAX Cash Flow 36.0 29.8 EUR: Gas - 4.97Bcf Condensate - 631.5Mbbl Cash Flow NPV (MM$AU) Bass Oil Limited ACN: 008 694 817 Level 5, 11-19 Bank Pl., Melbourne 3000 Victoria, Australia T + 61 3 9927 3000 F + 61 3 9614 6533 admin@bassoil.com.au www.bassoil.com.au Low side - 1C Resource Case: 1.1 BCF Qi: 5MMscf/d Capex: $16MM (gas network connection) P/I: 0.20 Payback Period: 1.2 years Project life: 2 years 10.00% 15.00% Gas 9.8 9.0 Condensate 15.4 14.1 Total 25.2 23.1 BTAX Cash Flow 4.3 3.7 ATAX Cash Flow 2.8 2.3 EUR: Gas – 1.1Bcf Condensate – 154.7Mbbl Net Revenue NPV (MM$AU) Cash Flow NPV (MM$AU) The key economic parameters implemented in the screening used to generate an ATAX NPV for the asset at 10% DCF of $36 million for the Mean resource case includes: • • • • • • EUR (Estimated Ultimate Recovery): 5 billion cubic feet (BCF) of raw gas and condensate 631.5 thousand barrels (mbbl) Qi (Initial Production Rate): 5 million standard cubic feet per day (mmscf/d) of raw gas Capex: $16 million to connect field into the Cooper Basin gas transportation infrastructure Profit/Investment (P/I): is 2.58 Cash Payback Period: Less than 1 year post initial production Project life: 9 years Kiwi-1 EPT Background and upside potential Kiwi-1 was drilled in 2003 as an exploration well, resulting in a Triassic age, Callamurra Member gas discovery which flow tested at 9.6 million cubic feet per day on drill stem test. Bass has interpreted a 3D seismic survey over the area and upgraded the potential size of Kiwi discovery to a mean Contingent Resource of 5.24 BCF and a 3C Contingent Resource of 11.5 BCF and a low side 1C Contingent Resource of 1.1 BCF. The Company has identified other prospects and leads on trend with Kiwi-1 from the geological work conducted by Bass’s technical personnel. Indications from the Kiwi-1 production test strengthens the potential for significant upside in the recoverable gas potential of the area. The Kiwi project represents a potential early entry into the Australian east coast gas market for Bass. Recent press commentary is firmly suggesting the gas market will soon be short of gas around the time Kiwi gas could become available. Bass Oil Limited ACN: 008 694 817 Level 5, 11-19 Bank Pl., Melbourne 3000 Victoria, Australia T + 61 3 9927 3000 F + 61 3 9614 6533 admin@bassoil.com.au www.bassoil.com.au Figure 1: Ex PEL 90K block location map Figure 2: Gas flare from EPT flowing survey at the Kiwi-1 wellsite Bass Oil Limited ACN: 008 694 817 Level 5, 11-19 Bank Pl., Melbourne 3000 Victoria, Australia T + 61 3 9927 3000 F + 61 3 9614 6533 admin@bassoil.com.au www.bassoil.com.au Developed and Undeveloped Resources & Reserves, as at 31 December 2023 Field Reserves (MMbbl) 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 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 Field Contingent Resources (MMbbl) Please refer to ASX Announcement, “2023 Reserves and Contingent Resources”, released 15 March 2024 for further information Note: The Contingent resources reported above have not been updated to include the increased condensate yield encountered during the Kiwi EPT The reserves and resources information in this release is based on, and fairly represents, information and supporting documentation reviewed by Mr Tino Guglielmo. Mr Guglielmo is an employee of Bass Oil Limited and has a Bachelor of Engineering (Mech). He is a member of the Society of Petroleum Engineers (SPE) and a Fellow of the Institution of Engineers of Australia (FIEAust). He has in excess of 40 years of experience. The reserves and resources information in this release has been issued with the prior consent of Mr Guglielmo as to the form and context in which it appears. This announcement has been approved for release by the Board of Bass Oil Limited. For further information please contact: Tino Guglielmo Managing Director Bass Oil Limited Ph: +61 3 9927 3000 Email: tino.guglielmo@bassoil.com.au Bass Oil Limited ACN: 008 694 817 Level 5, 11-19 Bank Pl., Melbourne 3000 Victoria, Australia T + 61 3 9927 3000 F + 61 3 9614 6533 admin@bassoil.com.au www.bassoil.com.au