Bass Oil (ASX: BAS) has secured a $3.5 million AUD grant from the South Australian government for its Kiwi liquids-rich gas project.
This cornerstone funding is earmarked for pipeline construction, connecting the field to Cooper Basin infrastructure and targeting an end-2028 online date.
The funds are specifically designated to support pipeline construction, critical infrastructure that will connect the Kiwi field to the extensive Cooper Basin, a vital step for future gas delivery.
The grant is contingent on the formal signing of a grant agreement.
Following this, the project is anticipated to be brought online by the end of 2028.
Kiwi Project's Production Potential
The Kiwi-1 well has already demonstrated significant potential, having undergone a production test in late 2024.
During this test, the well flowed at 4.1 mmcfd gas and 988 bcpd condensate at 1585 psi wellhead pressure.
This newly secured grant provides cornerstone funding, significantly de-risking the initial infrastructure development required to unlock this potential.
Bass Oil is actively progressing the remainder of the project financing.
The company is engaged in ongoing discussions for additional financing, including potential farm-in partnerships to advance the development.
Government Support and Regulatory Alignment
The grant from the South Australian Government signifies strong government support for the Kiwi liquids-rich gas project and the broader South Australian gas sector.
This backing is a positive signal for the project's regulatory path.
This development follows a recent trading halt on 20 February 2026, which specifically referenced the 2025 South Australian Gas Initiative—aligning with the program under which this grant was awarded.
The initiative is designed to incentivise and support gas projects that enhance energy supply within the state.
Broader Operational Context
Beyond the Kiwi project, Bass Oil maintains solid operational performance across its existing assets.
The company has reported high operational uptime and consistent production from its Cooper Basin and Indonesian assets.
Significant progress continues on the Vanessa gas acquisition, which includes a binding 3-year gas sales agreement for 12 PJ with Origin Energy (ASX: ORG).
First gas sales from Vanessa are anticipated in H2 2026, diversifying the company's revenue streams.
Exploration studies in the Triassic and Kiwi areas also continue to yield encouraging results, indicating further potential for resource growth.
Funding De-risked, Development Path Clearer
The $3.5 million SA Government grant is a crucial de-risking event for Bass Oil's Kiwi gas project, providing essential funding for infrastructure and moving the company closer to its end-2028 online target.
While the grant agreement still needs to be signed and further financing is required, this significant backing validates the project's potential and enhances its attractiveness for potential farm-in partners.
