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Bass Oil receives record price of US$64.20 per barrel with production likely to increase

Maintenance on Bunian-1 should result in production increasing in 2018.
Picture of map showing oilfield in Indonesia
Increased oil from existing assets is expected in 2018 and acquisitions will be considered

Bass Oil Ltd (ASX:BAS) and its joint venture partner sold a total of 17,260 barrels of oil or 9,493 barrels of oil net to Bass in January.

The oil from its Indonesian assets was shipped at record high prices with Bass realising an average monthly price of US$64.20 per barrel, up 8.5% on the previous month.

Bass uses inventories to take advantage of strong oil price

Field production during January decreased to 7,290 barrels net to Bass due to a constraint identified last month.

Bass managed the situation well as it offset the lower January production volumes with an extra shipment from inventory.

This enabled it to take advantage of the strong continued price support for oil, resulting in improved cash flow.

Removal of bottleneck increases production by 75 barrels per day

Bass has commenced a maintenance initiative involving the replacement of the existing flowline, connecting Bunian-3 to its production facility.

This will remove the bottleneck currently constraining production from the well, and following completion is expected to increase production by in excess of 75 barrels of oil per day.

Bass continues to plan for a two-well drilling program, while also evaluating a number of acquisition targets in 2018.

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