Bass Oil Ltd (ASX:BAS) has started construction of the Bunian 5 drilling site at its onshore Tangai Sukananti joint venture project in Indonesia’s South Sumatra region.
The well will be drilled vertically at the same drilling pad from which the Bunian 4 directional well was drilled, reducing costs and saving time for the project.
Bass has a 55% interest in Tangai which was producing an average of 600 barrels of oil per day from 4 wells as of last year.
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Planning and procurement activities are progressing for the upcoming drilling program and Bass expects to receive the contract for the drilling rig in December.
Mobilisation and spud of the first well at Bunian 5 is to occur as soon as possible after award of the contract.
Bass anticipates the drilling program to increase both the production capacity and developed reserves of the Tangai project.