Guess which ASX energy share just rocketed 154% on a new gas discovery

Shares in the ASX energy explorer were placed in a trading halt in late morning but have resumed trading following a correction of the earlier figures released..

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A little-known ASX energy share is leading the charge higher today.

Heading into the lunch hour the All Ordinaries Index (ASX: XAO) is down 0.3% while the S&P/ASX 200 Energy Index (ASX: XEJ) is up 1.3%.

However, ASX oil and gas junior Bass Oil Ltd (ASX: BAS) just rocketed an eye-popping 154.1%. This came after the ASX energy share reported it had identified a "significant gas resource".

Shares were placed in a trading halt in late morning pending a further announcement, which was just released. That clarified a few typos from the original release, which stated "billions" of barrels of oil rather than "millions".

ASX energy share leaps on gas discovery

Investors sent the Bass Oil share price soaring after the explorer reported on the results from an independent geological assessment conducted by Fluid Energy Consultants.

According to the release, Fluid identified a potential gas in place of 21 trillion cubic feet (TCF) along with 845 million barrels in place of condensate/oil. The gas and oil potential sits in Bass's 100% owned PEL 182 site, located in the Cooper Basin in South Australia.

The ASX energy share stated that gas from deep coals, lying below 2,500 metres, represents a new significant gas play in the Cooper Basin as well as a potential new material source of gas for the Australian market.

Commenting on the development, Bass Oil managing director, Tino Guglielmo said:

This is a very exciting development for Bass and its shareholders. At a time when the domestic gas market continues to face huge challenges meeting demand, this new potential gas resource represents a credible material contributor of gas to the domestic market."

A new gas resource of this kind is able to be commercialised efficiently due to the mature infrastructure of the Cooper Basin.

What's next?

As far as what's next for the ASX energy share, Bass said it is studying the best commercialisation strategies to progress the opportunities at PEL 182. Among the options, the company said it is considering self-funding, farmout, and third-party investment.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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