Bass Oil Limited announced that is has commenced a feasibility study to evaluate the commercialisation potential of the Kiwi Gas Discovery which it will shortly acquire. The Company is in the process of acquiring a number of Cooper Basin production and exploration tenements from Cooper Energy Limited and Beach Energy Limited which include multiple prospective gas development and exploration targets. The Company is progressing transaction completion with final document execution expected in early July 2022.

Since the Company announced the Cooper Basin Transactions in July 2021 and March 2022, Australian gas prices have increased more than 250% on the back of significant shortages in the market. As such, the Company is fast-tracking planned evaluation of key gas development opportunities in the portfolio and expects to complete this study in Fourth Quarter 2022. Bass aims to complete the Cooper Basin Transactions in July 2022 and will acquire a portfolio of prospective oil and gas development and exploration opportunities.

Specifically, the northern properties are highly prospective for liquids rich gas within and adjacent to the Patchawarra Trough. The area hosts numerous gas fields in Permian and Triassic aged sediments. Ex PEL 90K is located on the north-west margin of the Cooper Basin in South Australia ~120km from Moomba.

In 2003, Stuart Petroleum Limited ("Stuart") utilised 2D seismic survey to conduct an exploration program across the Cooper Basin, including within Ex PEL 90K. As part of this program, Stuart drilled the Kiwi-1 well resulting in a gas discovery which flow tested at a rate of 9.6 MMscf per day and was assessed to contain a Contingent resource in the range of 1.6 to 5.0 bcf with a 2C of 3.0 bcf on the basis of a structural trap indicated on the 2D seismic. This Callamura Member gas discovery was notable because is contained low inerts (CO2) and was moderately liquids rich.

Stuart did not proceed with the development, given a gas price of approximately $3.50/GJ, the modest resource size and gas infrastructure capital cost requirements at the time of discovery. Subsequently, Senex Energy Limited commissioned an extensive 3D seismic survey over the Kiwi gas discovery and the surrounding area followed by a significant mapping effort. This mapping identified significant upside potential associated with a stratigraphic trapping play to expand the potential of the Kiwi Gas Discovery.

The upside potential was assessed to be a prospective resource of 6.3 to 49.7 bcf (P90 to P10) with a mean prospective resource of 23.9 bcf. This could represent a significant development target for Bass. PEL 182 spans 870km2 and is located to the south west of Ex PEL 90K.

Senex conducted significant exploration activities within the tenement between 2015 and 2018, including the acquisition of 3D seismic over 25% of the permit. Senex identified a number of oil and gas leads that highlight the potential for Triassic gas accumulations similar to those discovered at Kiwi and the Santos operated Coonatie and Napowie gas fields. The tenement also contains thick sections of deepPermian coals in the Patchawarra Trough and Santoshas recently drilled the adjacent Beanbush-2horizontal well that specifically targets this coalsection.

The well is soon to undergo a multi-stagefracture stimulation program to enhance theproductivity of the coal section and test itscommercialisation potential. If successful, theBeanbush-2 well may provide an importantindicator for Bass' PEL 182 gas production upside. On completion of the Cooper Basin Transactions, Bass will own 100% of PEL 182 and will haveoptionality to acquire additional 3D seismic, conduct exploration drilling and/or attract farm-inpartners to carry the Company's expenditure.

Located between Ex PEL 90K and PEL 182, ex PEL100 contains significant oil and gas potential. Thepermit contains the Cleansweep oil discoverywhich proved up the basal Birkhead oil play, asignificant and long-term Cooper Basin oilproducing reservoir. Studies aimed at evaluatingthe follow up potential of the Cleansweepstructure and the adjacent Deramookoo structurehave commenced and may result in follow updrilling in 2023.

The permit is adjacent the edge of thePatchawarra Trough. The edge of the trough hashosted a number of significant gas discoveries. The gas potential will also be evaluated in Bass'geoscientific studies.

Australian east coast gas prices have increased more than 250% to over $35.00 per gigajoule at theWallumbilla hub in recent months, given a multitude of domestic and international factors havesignificantly hampered supply availability. In addition, Australian state and federalgovernments are looking to domestic energy producers to alleviate the current supply pressure. The increasing price significantly enhances the likelihood of Kiwi Gas Discovery commercialisationor progressing one of the Company's other prospective gas exploration opportunities in the near-term.

Therefore, the Company has accelerated its gas development and exploration endeavourswithin the Cooper Basin portfolio. Bass has commenced a feasibility study to assess a tie-in of the Kiwi-1 well to the Moomba gasgathering system and the viability of conducting an Extended Production Test (EPT) to prove up thelarger stratigraphic trapping potential identified by Senex's 3D seismic survey. An EPT is one of themost effective methods of evaluating the potential size of the resource.

The study will also evaluate the economic returns available by selling the gas via a tie-in to theMoomba gas gathering and processing system and sales into the growing east-coast gas marketrather than flaring it on location. In addition, the Company will assess the gas potential in conventional targets as well as within thedeep Permian coals in the Patchawarra Trough in PEL 182, given the multi-tcf gas potential of aSantos Limited led Cooper Basin joint venture targeting the same coals approximately 20km east ofPEL 182.Bass expects to complete the feasibility study in 2022. Upon the successful conclusion of the study,Bass will concurrently commence project planning activities and commercial discussions withappropriate counterparties to secure gas sales and processing agreements, as required.