Bass Oil : Onshore Indonesian Oil Operations Update – May 2019

ASX Announcement

Onshore Indonesian Oil Operations Update - May 2019

Release date: 13 June 2019

Highlights

• Monthly production achieved in May at Tangai Sukananti up 5% over April at an average of 717 barrels of oil per day JV share
• May production totalled 22,249 barrels of oil JV share or 12,237 barrels net to Bass
• May oil sales totalled 21,719 barrels of oil JV Share or 11,945 barrels net to Bass
• Monthly average oil price was US$67.78

Monthly Production and Sales:

Tangai-Sukananti Historical Production (55% basis)

Production (kbbl)

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

Australian-based, Indonesian oil producer, Bass Oil Limited (ASX:BAS) is pleased to provide its monthly operations update for May 2019. Total field production at Tangai-Sukananti for the month was 22,249 barrels of oil JV Share or 12,237 barrels of oil net to Bass. May oil sales totalled 21,719 barrels of oil JV Share or 11,945 barrels net to Bass. Monthly oil production and sales were up over April with May production rates averaging 717 bopd.

Bass Oil Limited	Level 5, 11-19 Bank Pl.,	T + 61 3 9927 3000	[e-mail]
ACN: 008 694 817	Melbourne 3000	F + 61 3 9614 6533	www.bassoil.com.au
	Victoria, Australia

The oil price was steady during May. The average monthly realised oil price was US$67.78 compared with a monthly average oil price of US$67.39 per barrel recorded in April. The fields continue to generate positive cash contributions to the business with field operating costs below US$25 per barrel.

Production Operations

The field continues to perform well with production in May averaging 717 barrels of oil per day JV share. This was a pleasing result considering that the Bunian 1, Tangai 1 and Tangai 3 wells shut in due to downhole pump failures. A well service rig has mobilised to site to carry out the Bunian 1 and Tangai 1 pump repairs.

The team in Indonesia is currently sourcing a workover rig to perform the remaining well work including the Bunian 4 workover and the Tangai 4 conversion to water injector. This work will commence as soon as possible.

Development Planning

Bass has received tenders for the provision of 750 horsepower capacity drilling rig for the drilling of the Bunian 5 well. The tenders are currently being evaluated. The aim is to drill the Bunian 5 as soon as the rig is available.

The well is expected to double production from the field taking up the remaining available production capacity of the Tangai-Sukananti field facilities as well as increasing developed reserves.

Corporate

During the month Bass and Cooper Energy agreed to delay the payment of the final instalment of the deferred consideration for the purchase of the Tangai Sukananti KSO. The final instalment of A$770,000 plus interest is due 31 July 2019.

Business Development

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.

For further information please contact:

Tino Guglielmo

Managing Director

Bass Oil Limited

Ph: [phone]

Email: [e-mail]

About Bass Oil Limited:

Bass Oil Limited (ASX:BAS) (www.bassoil.com.au) is an ASX-listed exploration and production company featuring low cost onshore oil production in Indonesia and a management and Board team with a proven track record in delivering shareholder value. Bass has realigned its corporate strategy following the landmark acquisition of a 55% interest in the Tangai-Sukananti KSO producing assets located in the prolific oil & gas region of South Sumatra, Indonesia.

As at May 2019, the Tangai-Sukananti KSO was producing on average 710 bopd from 4 wells (100% JV share). Bass reports Net Entitlement 2P Oil Reserves of 0.602 million. Bass is building towards a substantial onshore Indonesian oil

• gas business with a clear focus on executing opportunities in South Sumatra as they present. Bass has a strong and committed shareholder base with Board and management holding in excess of 16% of issued capital.