Bass Oil (ASX:BAS) Surges 129% on Gas Sales Deal with Origin Energy

Bass Oil Lands Origin Energy Agreement

Bass Oil Limited (ASX:BAS) delivered a major re-rating today, with the share price surging 129% after announcing a Gas Sales Agreement (GSA) with Origin Energy, one of Australia’s largest gas and electricity wholesalers. The agreement covers the supply of gas from the Vanessa Gas Project, which Bass is in the process of acquiring.

Securing a three-year sales agreement with a tier-one counterparty like Origin is a significant milestone. It provides revenue visibility, validates the commercial quality of the Vanessa gas field in the Cooper Basin, and materially strengthens Bass’s strategic position.

This agreement also marks a turning point in Bass Oil’s evolution. The company is transitioning from a small oil producer into a more integrated oil and gas business, with clear plans to enter the East Coast Gas Market by 2026.

What are the Best ASX Stocks to invest in?

Check our buy/sell tips

Bass Oil’s 12PJ Origin Deal Delivers Commercial Certainty

According to the announcement, Bass Oil will supply 12 petajoules of gas over the three-year term. While the exact contract price has not been disclosed, Cooper Basin wholesale gas typically sells for A$10–14 per gigajoule, implying a potential contract value in the range of A$120–170 million. With Bass operating low-cost infrastructure, project margins could realistically reach 30–40%, supporting strong cash flow from 2027 onward.

This is also a highly credible partnership. Securing Origin Energy as a Tier 1 counterparty immediately validates Bass’s gas credentials and strengthens confidence in the Vanessa asset. The GSA provides a guaranteed offtake for all gas produced, significantly de-risking the economics of restarting the field and giving Bass full commercial certainty as it moves toward East Coast market entry.

Bass Oil Delivers 32% Sales Lift

Bass Oil also delivered a strong operational performance in October. The group recorded total production of 7,560 barrels of oil, with around 4,700 barrels coming from its Indonesian operations, and achieved total sales of A$653,183, representing a 32% month-on-month increase.

Combined with a solid balance sheet and no debt, the company appears to be in a strong financial position heading into its next growth phase. This operational consistency, alongside today’s major gas agreement, reinforces that Bass is building momentum across both oil and gas divisions.

The Invetsors Takeaway For BAS

For shareholders, this marks a major shift in Bass’s identity, from a small, single-asset oil producer to a multi-field oil and gas company with stable, contracted gas revenues. The Origin GSA locks in three years of guaranteed income from 2026, which strengthens forecastability and provides a far more predictable cash flow base than the company has ever had.

There are still risks to consider. Bass will need to integrate the Vanessa acquisition smoothly, and oil prices remain inherently volatile. However, if inflation remains elevated and global energy demand strengthens, oil prices could move higher, further boosting margins.

Overall, this is an accretive, confidence-building milestone that significantly improves Bass’s cash flow visibility and long-term value creation pathway. The company is now transitioning from a “junior oil” player into a dual oil-and-gas producer with scalable upside, a transformation that the market is clearly beginning to recognise.