Continuing high monthly average oil price of US$68.54 realised from sales from theCompany's 55%-owned Tangai-Sukananti oil field in onshore Sumatra, Indonesia
June production volumes totalled 11,010 barrels of oil (JV share) or 6,055 barrels (net to Bass)
June oil sales volumes totalled 11,350 barrels of oil (JV Share) or 6,240 barrels (net to Bass)
Production and sales impacted by scale problems at production wells – remediation program underway
Upgrades to well pumps at two existing wells expected to double production at these wells
Monthly Production and Sales:
Australian-based oil producer, Bass Oil Limited (ASX:BAS) is pleased to provide its monthly operations update for June 2018.
Total field production at Tangai-Sukananti for June was 11,010 barrels of oil (JV Share) or 6,055 barrels of oil (net to Bass), a 40% reduction on production for May. Production in this month was impacted by scale development at the production wells.
June oil sales equalled 11,350 barrels of oil (100% JV Share) or 6,240 barrels (net to Bass). Oil was at an average realised oil price of US$68.54 per barrel, a 3% price decrease on the prior month.
Total production in June was impacted by the underperformance of the Bunian 1 and 3 wells.
The Bunian 1 sucker rod pump is showing signs of pump wear. Bass is planning to replace the Bunian 1 pump with an Electric Submersible Pump (ESP) during the September Quarter. The ESP is expected to significantly increase the offtake from this well, increase pump reliability and run life.
Bunian 3 production has been impacted by scale formation in the wellhead and the upper section of the wellbore. During the month, Bass field personnel identified a reduction in performance of the Bunian 3 well, isolating the problem to scale development in the wellbore. A wireline unit was mobilised to perform a scale clean out with the well returned to production early in July. The well was offline for one week.
Bass continued the detailed planning and approvals process for the 2018 drilling program scheduled to commence in the December quarter 2018. The scope of the program includes the drilling of up to two development wells, at Bunian 5 and Tangai 5.
It is expected that the drilling of these two proposed development wells will significantly increase the production capacity of the Tangai-Sukananti field as well as increase developed reserves.
Planning work for the upgrade of the Bunian and Tangai production facilities continues. A facility upgrade is required to process the additional oil and fluid production anticipated following the completion of the drilling phase of the work program.
Bass continues to evaluate a number of potential onshore Indonesian acquisition targets, particularly those closest to its existing oil production infrastructure, as the Company looks to add additional prospective oil properties to its portfolio during 2018.