Bass Oil Ltd (ASX:BAS) is continuing to achieve strong monthly production at the Tangai Sukananti fields onshore Indonesia at an average of 712 barrels of oil per day in December 2018.
This is the third highest production level attained from the field in the last 12 months.
Total field production at the Tangai-Sukananti was 22,071 barrels of oil (JV Share) or 12,139 barrels of oil (net to Bass) in December 2018.
December oil sales totalled 23,747 barrels of oil (100% JV Share) or 13,061 barrels (net to Bass).
The oil price fall continued during December in line with movements in global oil markets.
The average monthly realised oil price was US$53.86 compared with a monthly average oil price of US$62.25 per barrel received in November.
The fields continue to generate positive cash contributions to the business with field operating costs at or below US$30 per barrel.
The construction of the new Bunian 5 well site was completed in December.
Drilling contract negotiations are continuing with drilling expected to occur in the first quarter of 2019 subject to rig availability
Bunian 5 drilling program is expected to further increase the production capacity of the Tangai-Sukananti fields as well as increase developed reserves.
Meanwhile, planning work for the upgrade of the Bunian and Tangai production facilities continues.
A facility upgrade is required to process the additional oil and fluid production anticipated following the completion of the drilling phase of the work program.
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During December, Bass revealed that it elected to withdraw from the acquisition of a 100% participating interest in the North Madura PSC following the completion of its due diligence inquiries.
The company continues to evaluate a number of potential onshore Indonesian acquisition targets, particularly those closest to its existing oil production infrastructure, as the company looks to add additional prospective oil properties to its portfolio.