Bass Oil Ltd (ASX:BAS) has continued strong monthly oil production at its onshore Tangai Sukananti joint venture (JV) project in Indonesia’s South Sumatra region.
Production volumes in November totalled 23,434 barrels of oil (total JV share), or 781 barrels per day, the second highest monthly production since Bass took control of the asset.
The record production level of 27,795 barrels was reached in October.
The company is also continuing to advance development of its Bunian 5 well with drill planning and procurement processes ongoing.
Oil sales for the month amounted to 22,606 barrels, sold at a monthly average oil price of US$62.25.
The oil price eased during November from the October average price of US$76.69, in line with movements in global oil markets.
Bass considers the sustained strong production in November a good result considering water handling capacity restrictions at the facilities required production to be cut back from high water cut wells.
Deferred production was estimated to be 50 barrels per day.
The company has begun studies aimed at easing short-term processing restrictions.
READ: Bass Oil begins Bunian 5 well construction at Tangai Sukananti, drilling soon to follow
Construction of the Bunian 5 well continued during November and is expected to be completed this month.
Bass is planning for Bunian’s upcoming drilling program but has delayed award of the drilling contract due to rig availability.
Submissions received indicate that rigs will not be available in the area until March 2019.
Bass is continuing discussions with contractors and plans to spud the Bunian 5 well as soon as possible after the grant of the rig contract.
Drilling at Bunian is expected to further increase the production capacity of the Tangai-Sukananti fields as well as increase developed reserves.
Bass is also panning for an upgrade of the Bunian and Tangai facilities to be able to process additional oil and fluid production anticipated from the completion of drilling.