Bounty

Bounty Oil & Gas NL Profile

Company Overview: Bounty Oil & Gas NL is an independent oil and gas exploration and production company based in Australia. The company is publicly quoted and focuses on both onshore and offshore operations within Australia.

Operations:

Onshore Operations

• Cooper Basin, South-western Queensland:

  • Bounty has interests in the Naccowlah Block (ATP 1189P), where it holds a 2% interest. The block's 2P developed reserves (producing and contingent) were assessed at 3.653 million barrels of oil equivalent (mmboe) as of December 31, 2021, with Bounty's share being 73,000 barrels. The 3P developed reserves for Bounty's share were 106,100 barrels.
  • The company generated $1.90 million in revenue from the Naccowlah Block in 2022, with production totaling 13,411 barrels of oil equivalent (boe).

• Petroleum Lease 2 Alton (PL2):

  • Bounty plans to commence oil production at Alton in 2023, which is expected to generate additional revenue of up to $1 million per annum. There are significant upside potentials from four undrilled locations, enhanced recovery, and an appraisal well at the Eluanbrook prospect within PL2. During 2022, the company completed environmental and related compliance work.

• Petroleum Lease 441 Downlands (PL 441):

  • Bounty continued facility reviews and compliance activities. The production infrastructure and pipeline at PL 441 are connected to the Silver Springs – Wallumbilla trunk line. Gas production is expected to commence subject to regulatory approvals.

Offshore Operations

• Cerberus Permits, Carnarvon Basin, West Australia:
  • On October 7, 2021, Bounty entered a farmin agreement with Coastal Oil and Gas Pty Ltd to earn a 25% interest in this shallow water oil project. Bounty will contribute $500,000 to seismic interpretation and drill planning, and an additional $5.5 million to drilling expenses to earn its interest. The project targets oil in the lower Triassic source rock and reservoir sequence, similar to the successful Dorado Project, with high-case prospective resources of over 600 million barrels.

Financial and Production Outlook:

• Revenue:

  • Oil revenue from the Naccowlah Block was $1.90 million for the full year 2022.
  • Total oil revenue for 2023 is expected to be between $2.0 million and $2.5 million.

• Production:

  • Production from the Naccowlah Block in 2022 was 13,411 boe.
  • Future production is anticipated to increase with the commencement of oil production at Alton and potential gas production from PL 441.

Challenges and Opportunities:

• Covid-19 and Market Conditions:

  • The commencement of oil production at Alton was deferred due to Covid-19 and depressed oil prices in 2021. Development drilling was also deferred in 2022 due to quarantine delays and volatile crude prices.

• Reserve Growth:

  • Bounty maintained its oil reserves in 2021 and is well-placed for additional reserve growth. The company is focused on enhancing recovery and exploring new prospects, including the Eluanbrook appraisal well.

Regulatory and Compliance:

• Bounty has been engaged in various environmental and compliance activities, particularly in relation to its onshore operations. The company ensures that all its projects adhere to regulatory requirements before commencing production.

In summary, Bounty Oil & Gas NL is a small-cap junior company in Australia with significant exposure to both onshore and offshore oil and gas production. The company is poised for growth through its various projects, despite facing challenges related to global health crises and market volatility.