The historically Indonesian-focussed company gained a foothold in the Cooper last year when it acquired several interests from its largest shareholder Cooper Energy as part of a refreshed strategy to take oil and gas assets and boost production rates offering catalysts for shareholders past its steady pumping of oil onshore Sumatra.
The company will acquire Beach's interest in the producing Worrior field in PPL 207, building on the original 30% interest it acquired from Cooper to 100%. The field is one of the tenement Beach took from Senex Energy last year when it spun off legacy oil assets to become a pure play Queensland CSG company.
It will also acquire full ownership of the Padulla field in PPL 221.
Bass managing director Tino Guglielmo said the acquisition was an important step towards becoming a significant owner-operator in the Basin.
Guglielmo told Energy News that the acquisition was something of a homecoming for him, given that he helped discover the tenements during his time as MD of Stuart Petroleum in the early 2000s.
"Bass has a track record of extracting value from mature fields and is excited by the potential of this portfolio," he said.
"I have very strong working knowledge of the capacity and the potential of all of those properties and I'm excited to have them in my own care," he said.
The Warrior and Padulla fields are producing at an average of 75 barrels of oil per day at a net margin of A$30/bbl at a Brent oil price of US$80/bbl. The fields will also provide 2P reserves of almost 200,000bbls and 2C contingent resources of around 540,000bbls.
Once the deal is complete, Bass will own a 74-100% interest in eight Cooper Basin tenements which Bass said includes several exploration and appraisal opportunities.
The company said it has developed a work program of three work overs to boost production and convert the 2C contingent resources to 2P reserves within six—to-12 months after the deal is complete.
The tenements represent one of the largest acreage holdings in the core of the Cooper Basin, according to the company.
The MD said the company was still exploring expansion opportunities in Indonesia, where it has two onshore producing fields but said the pandemic had made the company look at alternative options.
"Through COVID we realised we need a second arm of the business and this is an obvious fit and with the team we have in Indonesia we want to use their expertise, and I can see synergies between the two. I think the two businesses can coexist and assist each other."
He noted some of the enhanced oil recovery methods the company using in Indonesia could be brought to bear at a desktop level.
Guglielmo described the discussions with Beach as constructive and cooperative
At the same time it has received commitments to raise A$1.2 million from sophisticated and professional investors through the issue of 800 million new ordinary shares at 0.15 cents per share, subject to shareholder approval.
Placement participants will receive one free attaching option for every three shares successfully subscribed for under the Placement, exercisable 0.4 cents before September 30, 2024.
The company has also announced a minimum holding share buy-back of ordinary shares for holders of less-than-marketable parcel shares, and a share consolidation at ratio of 30-to-one, subject to shareholder approval.
The company will hold an extraordinary general meeting on April 8 to consolidate the capital and, if approved, are expected to begin trading on a consolidated basis on May 12.
Bass said the program would allow it to reduce its total issued capital to a more "appropriate and effective capital structure".
Guglielmo said he had been in discussions with shareholders for some time regarding its strategy in the Cooper, saying they were broadly supportive.
"We are taking this long-awaited opportunity to complete a share consolidation and minimum holding buy-back, given the transformative nature of this milestone and our aim to build a successful and profitable oil and gas business," Guglielmo said.
Bass shares are worth 0.2c.
