PERTH (miningweekly.com) – ASX-listed Bass Oil will start a feasibility study to assess the commercial potential of the Kiwi gas discovery, which will be acquired from fellow-listed Beach Energy.

Bass Oil and Beach earlier this year struck a A$650 000 deal allowing Bass to acquire a portfolio of Cooper basin assets, which included Beach’s 70% interest in the producing Worrior oil field, a 100% interest in the producing Padulla oil field and a number of properties that contain prospective appraisal and exploration opportunities.

The acquisition of the Beach assets, which will be settled in July, complemented a similar deal struck with Cooper Energy, for the acquisition of three non-operated Cooper basin assets, including a 30% interest in the producing Worrior oil field and interests in exploration acreage, for cash consideration of A$650 000.

Since the deal was first announced, gas prices have increased by more than 250% on the back of significant shortages, and Bass is now fast-tracking the planned evaluation of key gas development opportunities in the portfolio, and is hoping to complete this study in the fourth quarter of 2022.

“We believe the acquisition of this portfolio from Cooper and Beach is transformative for Bass because it provides both oil and gas growth opportunities at an opportune time in the commodity cycle,” said MD Tino Guglielmo.

“Given the record gas prices we are seeing in the market, we will fast-track our gas commercialisation strategy and, in particular, evaluate the upside potential of the Kiwi gas discovery which could offer a prospective resource of more than 24-billion cubic feet of gas.”

The company has now started a feasibility study to assess a tie-in of the Kiwi-1 well to the Moomba gas gathering system and the viability of conducting an extended production test to prove up the larger stratigraphic trapping potential identified by seismic survey.

The study would also evaluate the economic returns available by selling the gas via a tie-in to the Moomba gas gathering and processing system and sales into the growing east-coast gas market rather than flaring it on location.