About Bass Strait Oil Company

Strategy and History

Bass Strait Oil Company was awarded its first Gippsland Basin permit in 1998 and was listed on the Australian Stock Exchange in 2004 (ASX code: BAS). To date the Company has maintained a clear exploration focus on the prolific southeast Australia region and is lead by experienced industry professionals. It has built a permit portfolio that comprises approximately 15,000 km² across five offshore and two onshore permits in the productive Gippsland and Otway Basins.

Bass Strait Oil Company's current portfolio is based on the prospectivity of these productive southeast Australia basins. The drivers for this include; access to prospects of material scale in world-class basins, a database of modern 3D seismic data defining new targets and play types, regional infrastructure, a strong gas market, the benefits of Australia's stable low-cost jurisdiction and the fundamental long-term value of oil and gas resources.

Across its permit portfolio, BAS has retained operatorship of its joint ventures (currently 7 of 8 permits) and typically holds large permit interests. This approach tends to optimise the benefits of the control of exploration direction, as well as to maximise the Company's leverage to potential success.

BAS has safely operated the drilling of five offshore wells since 2001 and operated, or participated in, a number of 2D and 3D seismic surveys. Two of the Company's wells were non-commercial hydrocarbon discoveries: gas at Moby-1 in 2004 and gas/condensate at Zane Grey-1 in 2005.

BAS has also continually invested in seismic data and modern exploration technologies allowing it to assemble an extensive database, including over 10,000 sq km of 3D seismic in the offshore Gippsland Basin. All of this 3D data has been acquired since 2001, adding significant value to the Company's acreage position and underpinning the Company's exploration program.

The Company is currently rationalising the existing portfolio to be able to focus on those high impact targets providing maximum value for shareholders. In this regard, farmout discussions relating to the offshore Gippsland permits are ongoing.

The Company is also seeking to diversify its portfolio and has identified onshore oil and gas plays in Australia, New Zealand and Indonesia as areas of interest for future investment. The Company intends to pursue opportunities in these regions with the view to building a balanced portfolio of production, appraisal and exploration opportunities with a weighting more towards shorter cycle, incremental growth.

Exploration Outlook

Gippsland Basin

The company holds interests in five offshore permits in the Gippsland Basin. Vic/P41, Vic/P47, Vic/P66 and Vic/P68 focus on the Golden Beach and Emperor plays on the Rosedale Fault Trend on the Northern Terrace of the basin. BAS has two discoveries in these permits; the Judith and Moby gas fields. The Vic/P42 permit is located in the south of the basin, adjacent to Kingfish, Australia's largest oil field. The focus here is on the Top Latrobe and intra-Latrobe plays. The permit contains the Zane Grey and Omeo gas/condensate discoveries.

The company's portfolio contains a balance of exploration and appraisal opportunities. It is actively seeking to commercialise the largest of the discoveries, the Judith Field and also to progress maturing high impact drillable prospects.

Otway Basin

The focus of exploration in the Otway Basin permits is on two play types. The first, focussed in the southeast of the PEP 167 permit, is the Waarre play which has yielded the major gas fields both onshore and offshore to the east. The second is the Laira and Casterton unconventional shale play, which is focussed to the north of the PEP 167 and within PEP 175 and PEP 150.

Bass Basin

BAS currently holds an overriding royalty (ORR) on the production from permit T/L1. This permit covers the Yolla Gas Field, an offshore, un-manned wellhead platform, connected to the onshore processing facility at Lang Lang Victoria.

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