Completion of $1.1m Placement and Launch of SPP
Released
Released
Announcement PDF
ASX Announcement
Release date: 19 April 2024
Bass completes strategic placement to accelerate Deep Coal
commercialisation activities and growth initiatives
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:
•
Bass has received binding commitments for A$1.1 million via a Placement at A$0.07 per
share predominantly to an Australian Tier 1 institutional resources investor
•
The Company will also offer a Share Purchase Plan (SPP) to eligible shareholders to raise
up to an additional A$2.0 million at the same price as the Placement
•
Funds raised under the Placement and SPP will enable Bass to accelerate growth initiatives
in the Cooper Basin such as further studies and investment in the PEL 182 Deep Coal Seam
Gas Play, Kiwi-1 Extended Production Test, and other high-value oil development
opportunities
•
The SPP will provide all eligible shareholders the opportunity to participate in the capital
raising
Bass Oil Limited (ASX:BAS) (“Bass” or the “Company”) is pleased to announce it has received binding
commitments for A$1.1 million via a placement of 15.71 million new fully paid shares in the Company
(“Shares”) predominantly to a Tier 1 institutional resources investor (“Placement”), showing strong
endorsement for the Company’s strategic growth plans in Australia.
Bass will also offer eligible shareholders in Australia and New Zealand the opportunity to participate
in a Share Purchase Plan (“SPP”) and will be accepting subscriptions up to a total of A$2.0 million.
The SPP will be conducted at the same issue price as the Placement. Proceeds will be utilised to fund
technical assessment of the PEL 182 Deep Coal Seam Gas asset, Kiwi-1 Gas Extended Production
Test (“EPT”) and to pursue other high-value oil development opportunities.
Both the Placement and the SPP are being issued at a price of A$0.07 per new share (“Offer Price”).
The Offer Price represents a:
•
15.2% discount to the 5-day volume weighted average trading price as at 16 April 2024; and,
•
9.1% discount to the last closing price of A$0.077 per share as at 16 April 2024.
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
Managing Director, Tino Guglielmo commented:
“Following strong Tier 1 investor interest and support, we are delighted to announce the successful
completion of Bass’s Placement, our only capital raising since 2022. The funding represents a key
component in our strategy to develop the Company’s exciting Australian oil and gas prospects, in
particular the PEL 182 Deep Coal Seam Gas prospect, a potential ‘company making’ opportunity, as
well as our organic growth opportunities. We feel the timing is right to accelerate our growth
opportunities. We are grateful to our shareholders for their continued support, and are pleased to
offer the shareholders the opportunity to participate in the capital raising via the SPP.”
PEL 182 Deep Coal Seam Gas Summary
On 16 November 2022 Bass announced the results of an independent study into the prospectivity of
the deep coals in this permit. The Deep Coal Gas Prospective Resource study quantified the gas
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 place.
The Moolion East deep coal prospect, with an assessed prospective resource of 568 BCF of gas and
22.7 million barrels of condensate, is wholly contained within Bass’ PEL 182 permit. This opportunity
is on trend with the Beanbush gas field which has been the focus of efforts by the Santos led Cooper
Basin Joint Venture to commercialise this deep coal resource (figure 1). Results from Santos’ well
completion report has recently become open file, with the report containing valuable data to support
Bass Oil’s activities in the region.
The results of this well will be a key input that will inform the SLB study that seeks to capture the
learnings and calibrate the geological and geomechanical models to assist in designing future wells so
they can be drilled in a manner that mitigates against future drilling problems and maximizes the
chance of delivering an economic outcome.
Total net Permian coal thickness in the Patchawarra Trough
Kiwi 1 Extended Production Test (EPT)
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. The discovery, which
was drilled on a 2D seismic data set, was originally thought to contain a sub commercial quantity of
gas. A 3D seismic survey was subsequently acquired over the area. Bass has interpreted the survey
and upgraded the potential size of Kiwi discovery resulting in a revised assessment of a mean
Contingent Resource of 5.24 BCF and a 3C Contingent Resource of 11.5 BCF.
Wild Desert Rig 4 has been identified as the rig to be used to complete the Kiwi well and it is
anticipated to be mobilised as soon as practicable. The results of the test will likely be known within
60 days of commencement or around mid-year.
The EPT will aim to prove that Kiwi contains a commercial volume of gas, thereby providing a
pathway for the Company to enter the tight eastern states' gas market. The Company has also
identified other prospects and leads, on trend with the Kiwi that, as a result of a successful test, may
be significantly upgraded.
Ex PEL 90K block location map
Exploration
The southern Cooper Basin properties (ex PEL93) are prospective for oil potential and are on the
southern extension of the prolific Western margin oil province in the Cooper Basin. The northern
properties are prospective for liquids rich gas within and adjacent to the Patchawarra Trough. The
areas host numerous gas fields in the Permian and Triassic aged sediments as well as a number of
Jurassic oil fields.
The prospectivity of these areas in being reviewed by the Bass geoscience team with the aim of
delivering a portfolio of prospects with the potential to provide an organic growth path for the
Company.
Use of Funds
The funds raised from the Offer will be used by the Company as follows:
Use of Funds
Amount (AUD 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
$3.1
Placement
Bass has successfully raised A$1,100,000 (before offer costs) through placement of 15,714,286 Shares
to institutional, sophisticated, and professional investors, at the Offer Price of A$0.07 per Share.
The Shares to be issued under the Placement (“Placement Shares”) will rank equally with existing
shares on issue. The Placement Shares are being issued under the Company’s available placement
capacity as per ASX Listing Rule 7.1
The Placement Shares are expected to commence trading on the ASX on Monday, 29 April.
The Placement was not underwritten.
Share Purchase Plan
In recognition of the ongoing support of its existing retail shareholder base, and in addition to the
Placement, Bass is pleased to announce that it will also be offering an SPP to raise up to an additional
A$2.0 million.
The Share Purchase Plan (SPP) will comprise an issue of up to 28,571,429 new fully paid ordinary Bass
shares (“SPP Shares”) at an issue price of $0.07 per share to raise up to A$2,000,000 (before offer costs).
The SPP will be offered to shareholders who were registered as a holder of Shares as at 7.00pm (AEDT)
on 18 April 2024 (“Record Date”). The SPP will be offered to shareholders with a registered address in
Australia or New Zealand as at the record date (see the SPP Timetable below) (“Eligible Shareholders”).
Eligible Shareholders can choose to subscribe to a maximum of A$30,000 worth of new Shares at the
Offer Price, and free of any brokerage, commission and transaction costs. All SPP Shares will rank
equally with existing fully paid ordinary shares and options on issue in the Company.
The SPP is not underwritten.
Indicative SPP Timetable*
The proposed timetable for the SPP is set out below:
Event
Record Date for SPP
Date
Announcement of Placement result and SPP announcement
7:00pm (AEST) Thursday, 18 April
Friday, 19 April
SPP Offer opens and booklet made available
9:00am (AEST) Tuesday, 23 April
Settlement of Placement Shares
Friday, 26 April
Allotment and trading of Placement Shares
SPP Offer closes
Announcement of SPP results
Monday, 29 April
5:00pm (AEST) Friday, 10 May
Wednesday, 15 May
SPP Issue Date and lodgment of Appendix 2A
Friday, 17 May
Quotation date
Monday, 20 May
SPP Shares commence trading on normal basis
Monday, 20 May
Despatch date
Tuesday, 21 May
*The dates are indicative only and the Company reserves the right to vary the dates, including the right to extend the
Closing Date, or to withdraw the SPP (subject to the Corporations Act 2001 (Cth) and the ASX Listing Rules). Any extension
of the Closing Date will have a consequential effect on the date for the allotment of SPP Shares.
Further Information
Further details of the Placement and SPP are set out in the Investor Presentation and SPP Offer Booklet
which is expected to be made available on the ASX on Tuesday, 23 April.
The Investor Presentation contains important information including key risks and foreign selling
jurisdictions. The Company also intends to host a webinar via zoom on Friday, 26 April, to further
outline the opportunity, growth strategy and use of funds.
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
Damon Holland
Associate Director
AE Advisors
Ph: +61 8232 8800
Email: dholland@aeadvisors.com.au
About Bass Oil Limited:
Bass Oil Limited (ASX:BAS) is an Australian-listed oil producer that holds a majority interest in eight 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. Bass has a strong and committed shareholder base
with the Board and management holding over 10% of the issued capital.
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