Bass Oil : Reserves and Contingent Resources - 31 December 2021

ASX Announcement

Release date: 31 March 2022

Indonesian oil fields update - Reserves and Contingent

Resources for year ending 31 December 2021

Bass Oil Limited (ASX:BAS) ("Bass" or the "Company") is an Australian-listed oil producer with a 55% Operator interest in the Tangai-Sukananti licence in the prolific South Sumatra Basin. As announced 12 July 2021 and 2 March 2022, Bass is in the process of acquiring a significant portfolio of tenements, which include production in the Cooper Basin, South Australia. The Company is debt free and committed to creating and maximising value, leveraging its competitive strengths, its team, operating capability, reputation, and relationships in both Australia and Indonesia.

Highlights

• • 1P (Proved) Net Entitlement Oil Reserves of 0.316 million barrels

• • 2P (Proved plus Probable) Net Entitlement Oil Reserves of 0.425 million barrels

• • 3P (Proved plus Probable plus Possible) Net Entitlement Oil Reserves of 0.644 million barrels

Reserves

Bass Oil (ASX:BAS) has recently completed its annual reserves review for its Indonesian oil fields. The results are summarised herein. The 2P Field Reserves in the Tangai-Sukananti KSO are assessed as of 31 December 2021, to be 1.637 million barrels of oil on a 100% JV basis. This reflects a small decrease in the proved and probable reserves for the Bunian and Tangai oilfields see (Tables 1 and 2 as well as Figure 1 below). In accordance with ASX reporting requirements for fiscal environments that use production sharing contracts or similar, Bass reports Net Entitlement 2P oil Reserves of 0.425 million barrels, a modest decrease year on year (Table 2). Net Entitlement Reserves are the share of cost oil and profit oil that Bass is entitled to receive under the KSO signed with the Indonesian government body, PT Pertamina. The Net Entitlement Reserves formula varies with the fiscal environment, cost recovery status, oil price and scheduled contract expiry. The main factor resulting in a decrease in Net Entitlement Reserve this year was the delay in the development drilling program in 2021 due to the oil price volatility and the impact of the COVID pandemic. This delay has deferred some forecast oil production till after contract expiry in July 2025. This resulted in a concurrent increase in Contingent resources.

Contingent Resources

The total 100% Field 2C Contingent Resources for the Tangai-Sukananti KSO on 31 December 2021 are assessed to be 0.891 million barrels of oil. The Field Contingent Resources comprise volumes attributed to currently producing or future planned wells in the Bunian and Tangai oil fields post license expiry in July 2025. This presents a future development opportunity to increase or bring forward reserves.

Year-On-Year Movements in Reserves and Contingent Resources (net of Production)

The year-on-year movement in the 1P, 2P and 3P reserves for the KSO largely reflect small adjustments due to field performance.

The year-on-year movements in the Entitlement Reserves sees a small decrease in the 1P, 2P and 3P reserves. This due to a reduction in net attributable oil sales to the Company as the Company was allocated a lower share of the oil produced due to an increase in oil prices received during the latter part of 2021 and forecast for the remaining contract period. Additionally, a deferral of the development program from 2021 decreased recovery inside the contract period to July 2025.

Notes on Calculation of Reserves and Resources:

The Integrated field studies completed in 2020 following the drilling of Bunian 5 have updated the oil volumetrics, development scenarios and drilling locations used in this report. Additionally, a decline curve analysis (DCA) was conducted on the current wells and informed the production forecast for the planned wells. The 1P, 2P and 3P cases are a combination of the forecasts from both the Dynamic Model and the DCA as deemed to best represent realistic outcomes.

The Bunian Field is currently producing from only the TRM3 sandstone. However, the K reservoir is expected to become a significant contributor to future production with planned drilling. The Tangai Field has one producing reservoir (the M sandstone).

All reserves and resources are estimated by deterministic estimation methodologies consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS).

Under the SPE PRMS guidelines, "Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions". Net Entitlement Reserves are the reserves that Bass has a net economic entitlement to. That is, a share of cost oil and profit oil that Bass is entitled to receive under the KSO signed with the Indonesian government body, PT Pertamina.

Contingent Resources are "those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations by application of development projects, butwhich are not currently considered to be commercially recoverable owing to one or more contingencies".

Qualified Petroleum Reserves and Resources Evaluator Statement:

The information contained in this report regarding the Bass Oil Limited reserves and contingent resources is based on and fairly represents information and supporting documentation reviewed by Mr Giustino Guglielmo who is an employee of Bass Oil Limited and holds a Bachelor of Engineering (Mech). He is a member of the Society of Petroleum Engineers (SPE) and a Fellow of the Institution of Engineers Australia (FIEAust) and as such is qualified in accordance with ASX listing rule 5.4.1 and has consented to the inclusion of this information in the form and context in which it appears.

Authorised for release by the Board of Directors of Bass Oil Limited.

For further information please contact:

Tino Guglielmo

Managing Director Bass Oil Limited

Ph: +61 3 9927 3000

Email:tino.guglielmo@bassoil.com.au

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