Bass Oil (ASX:BAS) ready to supply Tangai-5 oil development well – The Market Herald
- Australian oil producer Bass Oil (BAS) will begin drilling the Tangai-5 oil well this week as part of its joint venture project in Sumatra, Indonesia.
- The company says the Tangai-5 development well, if successful, has the potential to improve production at Tangai-Sukananti KSO from 350 barrels of oil per day (bopd) to around 1,000 bopd.
- Bass has a 32-day work plan to drill, complete and bring the well into production
- The Tangai-Sukananti license area in South Sumatra’s mature oil and gas production basin includes the currently producing Bunian and Tangai oilfields.
- BAS shares jump 25% to 0.3 cents
Shares of Bass Oil (BAS) jumped after the company announced that drilling of the Tangai-5 oil well as part of its Tangai-Sukananti KSO joint venture production project in Sumatra, Indonesia will begin this week.
The company said the Tangai-5 development well, if successful, could improve production at Tangai-Sukananti KSO from 350 barrels of oil per day (bopd) to around 1,000 bopd.
Tangai-5 was scheduled to start on Tuesday March 29 and Bass considered the well to have an 85% chance of success.
He has a 32-day work plan to drill, complete and bring the well into production.
The company holds a 55% operating interest in the Tangai-Sukananti license in the mature oil and gas production basin of South Sumatra.
The license area includes the Bunian and Tangai oilfields currently in production.
Tangai contains oil at two reservoir levels, and the Tangai-5 well will target the primary M sand and secondary K reservoir levels, which have produced or tested oil at Tangai-1 (M and K), Tangai-2 (M and K), Well Tangai-3 (M) and Tangai-4 (K).
Bass said Tangai-5 would “confirm” the production and reserve potential of the K level at an optimal location on the structure.
BAS shares were trading up 25% at 0.3 cents at 2:19 p.m. AEDT.