Bass Oil 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 as well as a 55% interest in an Indonesian oil producing KSO.

Highlights

• A significant prospective new gas resource has been identified, following an independent geological assessment by Fluid Energy Consultants (Fluid)
• The play exists in PEL 182 (Bass 100% and operator), where Fluid has identified a potential gas in place of 21 TCF along with 845 Billion Barrels in place of condensate/oil
• The Moolion East prospect containing 3.8 TCF of gas in place, identified as the ideal area to test the play, has an assessed prospective resource of 568 bcf plus associated liquids
• Cooper Basin operator Santos is currently trialing horizontal drilling and fracking to commercialise this significant resource at Beanbush, adjacent PEL 182
• Bass to conduct further studies to identifying the best commercialisation strategies
• Gas from stand alone development of deep coal represents a potential new play in the Cooper Basin and a possible major source of new gas supply to the domestic market
• Bass (100%) as operator of PEL 182 will consider appropriate mechanisms to progress this opportunity including self funding, farmout, and third party investment.

Summary

Bass Oil confirms that, following the engagement of independent geological experts, Fluid Energy Consultants (Fluid), it has identified a significant prospective resource that has the potential to materially grow the Company's Australian operations in the Cooper Basin in South Australia.

The Deep Coal Gas Prospective Resource Report quantified the gas potential contained in PEL 182 (Bass 100%) in the Cooper Basin, South Australia at a "best estimate" of 21 TCF of gas in place along with accompanying 845 billion barrels of condensate/oil in place.

Gas from deep coals, lying below 2500 metres, represent a new significant gas play in the Cooper Basin and potential new material source of gas for the domestic market.

Gas is known to exist in the Permian aged coals of the Toolachee, Epsilon and Patchawarra formations and has flowed at potentially commercial rates after fracture stimulation and when comingled with conventional gas produced from sandstones.

Santos and the Cooper Basin Joint Venture has been working on commercialising these coals. More recently, Santos has drilled and plans to frac the Beanbush 3 horizontal well adjacent to PEL 182, in the same geological setting and on trend in the Patchawarra Trough.

Bass Oil Managing Director Mr Tino Guglielmo commented;
"This is a very exciting development for Bass and its shareholders. At a time when the domestic gas market continues to face huge challenges meeting demand, this new potential gas resource represents a credible material contributer of gas to the domestic market."

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