Bass Oil (ASX: BAS) has secured a binding Gas Sales Agreement with Origin Energy for supply from the Vanessa Gas Project in South Australia’s Cooper Basin. The agreement covers up to 12.045 petajoules over three years and provides the commercial basis for Bass to advance the project toward recommissioning and first gas in 2026.
Agreement Details
Origin will purchase all gas produced from the Vanessa field once Bass finalises the acquisition and restores the operation to full output. Planning for recommissioning is underway. The arrangement gives Bass a dedicated offtake path as it prepares to integrate the field’s production facility and its 5-kilometre pipeline connection into the broader Cooper Basin network.
Vanessa was drilled in 2007 and later brought online in 2018 at 3.5 million standard cubic feet per day. The well produced 1.1 billion cubic feet across its initial two-year period. Bass intends to use the existing infrastructure, enabling a lower-cost reactivation compared with new field development.
Such agreements hold strategic value as the East Coast gas market experiences tightening supply and structural demand growth. Contracted volumes help smaller producers activate dormant fields that become economic under updated pricing environments. Bass has stated that the Vanessa acquisition forms part of a larger plan to expand its footprint within the Cooper Basin.
Management Commentary
Bass Managing Director Tino Guglielmo said, “This is a key step for Bass’ entry into the East Coast Gas Market. Demand and corresponding gas pricing is increasing, which means fields such as Vanessa can be returned to production and run profitably under a low-cost structure.”
He added, “Importantly, we also see Vanessa as a key asset in unlocking what we believe may be a significant gas resource contained within the deep coals in our 100% owned PEL 182.”
Operational and Financial Position
Bass reported September quarterly oil sales of A$1.62 million at an average realised price of A$100.84 per barrel. Net production for the June quarter reached 20,905 barrels, averaging 227 barrels per day. A production enhancement program in Indonesia increased output by 20% in early October.
As at 30 September 2025, cash reserves stood at A$1.36 million, excluding A$3.7 million held on deposit for rehabilitation bonds required by South Australian regulators. Bass remains debt-free and continues to progress rehabilitation liabilities across its Cooper Basin assets.
The Vanessa agreement positions Bass to diversify from an oil-weighted portfolio into a more balanced oil-and-gas asset base. Recommissioning the field may also help advance evaluation of deeper gas potential across PEL 182, which holds broader geological interest. These activities support Bass’ aim to expand production capacity in both Australia and Indonesia while leveraging accessible infrastructure in the Cooper Basin.
