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    Bass Oil to raise A$4mn to fund Cooper basin activities

Summary

The proceeds will be utilised to fund the completion of the Cooper basin transactions with Cooper Energy and Beach Energy and production enhancement activities.

by: Shardul Sharma

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Bass Oil to raise A$4mn to fund Cooper basin activities

Sydney-listed Bass Oil has launched a one-for-two non-renounceable entitlement offer to eligible shareholders at an issue price of A$0.045 ($0.032)/share to raise up to A$4mn, it said on May 26.

Rights issue participants will also receive one free attaching option for every one share subscribed for, exercisable at A$0.12 on or before September 30, 2024. The proceeds will be utilised to fund the completion of the Cooper basin transactions with Cooper Energy and Beach Energy and production enhancement and exploration activities post-completion, Bass Oil said.

The offer price represents a 7.9% discount to the 30-day volume-weighted average trading price of the company’s shares for the period ending May 25.

Bass Oil announced in July 2021 that it had executed a conditional sale and purchase agreement 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 and assumption of restoration liabilities.

In March this year, the company announced that it had entered into a second conditional sale and purchase agreement with a subsidiary of Beach Energy to acquire a portfolio of Cooper basin assets for total cash consideration of A$650,000 and assumption of future restoration liabilities.

The assets to be acquired include Beach Energy’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. On completion, Bass Oil will own a 74%-100% interest in eight Cooper basin tenements.

Bass Oil said it is aiming for production of over 1,000 barrels/day within 12 months of transaction completion. “This is the first step to achieving the company’s medium-term goal of producing 5,000 b/d and paying shareholders a stable dividend,” it said.