Bass Oil : Quarterly Activities Report and Appendix 5B - March 2022

ASX Announcement

28 April 2022

Quarterly report for the period ending 31 March 2022

Bass Oil Limited (ASX:BAS) ("Bass" or the "Company") is an Australian-listed oil producer with a 55% Operator interest in the Tangai-Sukananti licence in the prolific South Sumatra Basin. As announced 12 July 2021 and 2 March 2022, Bass is in the process of acquiring a significant portfolio of tenements, which include production in the Cooper Basin, South Australia. The Company is debt free and committed to creating and maximising value, leveraging its competitive strengths, its team, operating capability, reputation, and relationships in both Australia and Indonesia.

Highlights

• • Bass executed a Sale and Purchase Agreement with a subsidiary of Beach Energy Limited to acquire its interest in eight Cooper Basin tenements for cash consideration of A$650,000

• • Bass raised A$1.2 million via the placement of 800 million Bass shares at $0.0015 per share and 1-for-3 free attaching option to fund the Beach Transaction

• • Bass has concluded drilling of the Tangai-5 development well penetrating the primary target, the M reservoir, on prognosis with good hydrocarbon shows and between 5 metres and 6

  metres of high quality net oil pay

• • Production for the March 2022 quarter averaged 365 barrels of oil per day (bopd) (JV share)

• • Net entitlement oil for the March 2022 quarter totalled 8,142 barrels of oil and the Company generated sales revenue of US$0.84 million (average oil price of US$98.85 received)

Comparative Performance:

Key Performance Metrics	Mar Qtr Q1 FY22	Dec Qtr Q4 FY21	Qtr on Qtr Change	Mar Qtr Q1 FY21	Yr on yr Change
Net Production1 (mbbl) Net Oil Sales1 (mbbl) Net Entitlement to Bass (mbbl) Sales Revenue (US$M) Average Realised Oil Price Cash (US$M)	16.88 16.61 8.14 0.84 98.85 1.84	18.09 19.53 10.10 0.81 77.87 1.50	-6.7% -15.0% -19.4% 3.7% 26.9% 22.7%	21.33 21.81 11.71 0.69 56.73 0.11	-20.9% -23.8% -30.5% 21.7% 74.2% 1572.7%

Note 1: Net Production and Oil Sales are reported at 55% of Gross Production and Oil Sales for consistency and excludes the deduction of Domestic Market Obligation (DMO)

Bass Oil Managing Director, Mr Tino Guglielmo, commented:

"During a busy quarter Bass has materially progressed a number of its strategic growth initiatives.

These include the acquisition of a suite of high-quality Cooper Basin assets. After the end of the quarter Bass safely and successfully concluded the drilling of the Tangai 5 development well in Indonesia achieving all its pre-drill objectives. Indonesian production is forecast to shortly reach 1000 bopd (JV share), this at a time of high oil prices. The Cooper basin transaction is targeting an ambitious production growth target of 500 bopd in the first 12 months from those assets."

Field Performance:

Tangai-Sukananti Quarterly Production (55% Bass)

40.000

Production(Kbbl)

22.788 10.000

35.000

30.000

25.000

20.000

15.000

5.000

0.000

Production for the March quarter was 16,875 barrels of oil (55% basis), down 6.7% from the December quarter. Quarterly oil sales were 16,614 barrels of oil net to Bass, down 15.0% from the previous quarter. The net entitlement oil to Bass was 8,142 barrels of oil for the March quarter after Domestic Market Obligation (DMO), down 19.4%. In the Indonesian fiscal regime, net entitlement oil reduces with increased oil price as cost recovery and profit oil quantities are achieved with fewer barrels of oil.

Field Development:

During the quarter the drilling rig was moved into the Tangai field and rigged up on the Tangai 5 development well location. The well was spudded on 1 April 2022. The well was drilled to a Total Depth of 1,663mRT.

The primary reservoir, the M sand was penetrated on prognosis and had good hydrocarbon shows on the mud log. Preliminary wireline log analysis has identified between 5 metres and 6 metres of net oil pay in high quality reservoir as prognosed. The rig is completing the well as an oil producer.

Figure 1: Tangai-Sukananti KSO Location Map

Corporate:

Cash Position

As at 31 March 2022, Bass' cash reserves increased 22.7% from the December 2021 quarter to US$1.84m. The increase in cash reserves was influenced by the funds received from a Placement which was approved by Shareholder at a General Meeting on 8 April 2022. The Company carries no debt.

Timing of payment

Due to delays within Pertamina, Bass did not receive its January oil proceeds due in March, until 21 April 2022 resulting in the Company's cash position being $0.26m lower than expected.

Revenue

Oil sales for Bass totaled US$0.84m in the March quarter, an increase of 3.7% on December quarter.

Oil Price

Bass receives ICP crude pricing, linked to the benchmark Brent crude, which trades at a premium to West Texas Intermediate (WTI) crude oil. The Company realised an 26.9% increase in the average oil price for the March quarter to US$98.85. The Company has no oil hedges in place.

Placement

At the General Meeting of Shareholders held on 8 April 2022 the Company received shareholder approval to issue 800 million shares at $0.0015 per share in a Placement to sophisticated and professional investors. Additionally, the investors were issued a 1 free attaching option for every 3 shares acquired, exercisable at $0.004 on or before 30 September 2024.

The Company also received shareholder approval at the General Meeting to undertake a 1-for-30 Share Consolidation which will be completed after completion of a non-marketable parcel buy-back on 28 April 2022. Together, the Consolidation and Buy-Back represent Bass' capital initiatives outlined by the Company in the ASX Announcement dated 2 March 2022.

Business Development:

Bass announced on 2 March 2022 that it had entered into a conditional sale and purchase agreement with a subsidiary of Beach Energy Limited to acquire its interest in eight Cooper Basin tenements for cash consideration of A$650,000 and assumption of future restoration liabilities.

The assets to be acquired include Beach's interest in the producing Worrior and Padulla oil fields and a number of properties that contain prospective appraisal and exploration opportunities. The Beach Transaction remains subject to a number of conditions precedent, including relevant regulatory approvals.

On contemporaneous completion of the Beach and Cooper Transactions (announced on 12 July 2021), the Company will own a 100% interest in the Worior and Padulla oil fields as well as a 74%-100% interest in an additional six Cooper Basin tenements. This holding represents one of the more significant land positions in the core of the Cooper Basin. The transaction is expected to complete late in Q2 CY 2022.

Figure 2: Cooper Basin properties to be acquired by Bass Location Map

Tenement Holdings:

Glossary
BOPD	Barrels of oil per day
BOEPD	Barrels of oil equivalent per day
mbbl	Thousands of barrels of oil
mmbbl	Millions of barrels of oil
DMO	Domestic Market Obligation (for Oil)
JV	Joint Venture
TS	Tangai-Sukananti KSO
KSO	'kerja sama operasi' (Indonesian) - meaning an operation cooperation contract
Qtr	Quarter
Qtr on Qtr	Quarter on Quarter
Yr	Year
Yr on Yr	Year on Year
US$m	Millions of United States of America dollars

Joint Operation	Location	Interest owned	Interest acquired/farm in during the quarter	Interest disposed/farm out during the quarter
Tangai-Sukananti KSO	Indonesia	55%	-	-

This ASX announcement was authorised for release by the Bass Oil Limited Board of Directors.

For further information, please contact:

Tino Guglielmo	Travis Ban
Managing Director	Associate Director
Bass Oil Limited	Adelaide Equity Partners Limited
Ph: [phone]	Ph: [phone]
email:[e-mail]
Email:[e-mail]