- Highlights
- Corporate/Oil Production/ Development – Naccowlah Block and Surat Basins, Queensland
- Cooper Basin (Naccowlah): Watkins North 1 and 2 came online this quarter boosting Bounty
production by 75% quarter on quarter with strong oil revenues.
- Cash and current assets at $1.30 million; nil debt.
- Oil business revenue for the six months to December 2023 was $833,000.
- Surat Basin: During period Bounty took 100% ownership of additional proved oil reserves
adjoining Alton.
- With oil price near $130/bbl, Bounty will continue field operations to bring Surat Basin fields
back into production in 2024.
- Gas Exploration - PEP 11 – Sydney Basin NSW (BUY 15%)
- NOPTA has made a recommendation to Joint Authority on Bounty and Asset Energy’s
applications for extension, their decision is awaited.
- Asset Energy as major holder of PEP 11 is actively preparing to drill Seablue 1.
- Polling conducted discovers a majority of voters in the Hunter region do not oppose drilling
offshore Newcastle.
Oil Business - Production:
Bounty continues to produce oil from the Naccowlah Block in SW Queensland.
Bounty expects to commence oil production from the Alton area, Surat Basin, SE Queensland in 2024.
Bounty’s unaudited petroleum revenue production and sales for the quarter and year to date 31 December 2023
are summarised below.
Oil Business – Production and Development:
SW Queensland
ATP 1189P Naccowlah Block and Associated PL’s - Bounty 2%
Location: Surrounding Jackson, Naccowlah and
Watson Oilfields
Background - Summary
The Naccowlah Block comprises 1,804 km2
approximately 6% of which is covered by ATP 1189 (N)
and 1 Potential Commercial Area (PCA) application
and the remainder in 23 petroleum production leases
(PL’s) and 3 PL applications.
Activities during the Quarter
Principal activities during the quarter were continued
oil production and bringing the Watkins North wells
online. Production averaged 43 bopd net to Bounty in
this Quarter.
The operator has identified additional development
and NFE (near field exploration) targets in the
Naccowlah Block which will be subject to future
drilling campaigns.
Significant Activities Next Quarter
Commencement lifting oil from Watkins North
discoveries after tie-in. Ongoing production and
production optimisation programmes.
Oil Business – Development:
Southern Surat Basin Onshore Queensland
PL 2 Alton Oilfield and PL 46 Fairymount Oilfield
Bounty - 100%;
Location: 70 km northeast of St. George and 440 km
west of Brisbane, SE Queensland.
Background
The location of Bounty group Southern Surat Basin
interests is shown below. Alton has had historical
production of over 2 million barrels from the early
Jurassic age Evergreen Formation and Fairymount 1.17
million barrels from the Showgrounds Formation.
Bounty’s oil resources in the Southern Surat Basin are light oils (high API) derived from Permian coals (Cooper Basin
equivalent) and offer 445,000 bbls 2C recoverable oil in proven pools for development alongside more than 100,000
bbls in oil available from existing wells.
Activities during the Quarter and Next Quarter
With acquisitions Bounty re-evaluated the targets at Alton and Fairymount and lifted Alton area reserves/resources
to 461,000 bbls.
2024 Plans
Underwritten by higher oil prices anticipated at $135 per bbl, Bounty commenced field work to bring 2 wells at
Alton back into production while it generates a full field development plan aimed at commercialising 200,000 bbls
of 2C contingent resource from the Evergreen Formation. Further development will move on to include drilling an
up-dip appraisal well at Eluanbrook in the northwest section of PL 2 B and up to 3 attic oil locations within the Alton
and Fairymount Pools. Initial production of 100 bopd is expected from the Evergreen Formation at Alton.
Major Growth Projects:
Gas Growth Projects:
PEP 11 - Offshore Sydney Basin, New
South Wales – Bounty 15%
Background
PEP 11 covers 4,576 sq. km
immediately adjacent to the largest
gas market in Australia and is a high
impact exploration project. PEP 11
remains one of the most significant
untested gas plays in Australia. The
PEP 11 JV has demonstrated
considerable gas generation and
migration in the offshore Sydney
Basin, with the previously observed
mapped prospects and leads being
highly prospective for gas. In 2010 it
drilled New Seaclem 1 and
demonstrated capacity to drill in this
permit.
On 14 July 2023; the Minister for
Climate Change and Energy, gazetted/
designated an area off the Hunter
Region of NSW as suitable for offshore
wind energy developments (see
Location Map). At its closest point the Declared Area is 25 km from the Baleen Prospect and not expected to have
any impact on the Baleen Prospect or other gas prospective areas in PEP 11 (see map below).
Activities this Quarter
Bounty and Asset Energy (Operator) have committed to drill an exploration well for gas, most likely the proposed
Seablue 1 well on the Baleen Prospect. NOPTA has made a recommendation on the joint venture applications to
the Joint Authority (see definition). The joint venture anticipates a decision shortly.
In the meantime, work continued in securing a rig and contractors in preparation for the drilling of the Seablue 1
well.
Cerberus Project Offshore Carnarvon Basin WA – Bounty right to earn 25% with options to earn up to 50%
Location: 70 km. East of Barrow Island WA
Titles: EP 475, 490 and 491, TP 27 totalling 3,759 km2
- Bounty right to earn 25% - 50%
Main Points
During the year ended 30 June 2023 Bounty assisted in obtaining an extension of the permit term and suspensions
of the current work programs for EP 475 which was approved by the West Australia state regulator on 13 July 2023;
contingent on a firm drill commencement by May 2024.
? The Farmin Agreement (FIA) with Coastal continues and both the FIA and notice of option exercise
have been registered by Bounty against the key Cerberus Permits.
? Bounty continued minor expenditure on this project during the period.
? Seismic interpretation on the re-processed 3D seismic data demonstrated deeper gas potential in the
Permian age sequences
? Potential funding options for drilling were explored.
Activities Next Quarter
Drill timing is dependent on progress by the operator to obtain drill funding. Until that point Bounty will monitor
progress
Rough Range Project Onshore Carnarvon Basin – WA
L 16 – Bounty 100%
Location: Exmouth Gulf – WA
Background. The principal undrilled prospect is the 3 million bbls potential Bee Eater prospect in the southern
section of L 16.
Activities during the Quarter and next Quarter
Bounty continued re-mapping regional seismic data sets and analysing the geological database attempting to image
the principal structures in the region. This is challenging due to poor surface statics. The targets are relatively
shallow at around 1100 metre depth to target. Seismic re-processing for L 16 is planned for 2024.
During the quarter Bounty was updating compliance documentation.
Summary
Oil revenue is expected to be stronger at $2.0 - $2.5 million in 2024.
Australia confronts the challenge of finding more domestic oil and gas and producing those reserves. Bounty
maintained its oil reserves in the year to 31 December 2022 and with the Watkins North discoveries is well placed
for additional reserve growth which will be calculated for the year ended 2023.
Bounty expects resolution of the PEP 11 extension later in 2023 and Bounty is looking forward to participation in
further NFE and development drilling programs in Naccowlah Block: The joint venture has at least 9 sites for
additional appraisal and NFE wells in the Jackson and Watson areas of the Block. Bounty also expects oil production
growth from its 100% operated projects in the Surat Basin.
Payments to Related Parties during the quarter
$38,000 was paid to directors as remuneration and super contributions, $75,000 was paid to entities related to
the CEO towards management fees and office rent (rounded ex-GST figures).
Current Assets (unaudited) – 31 December 2023
At the end of the quarter cash, receivables and held for sale investments were around $ 1.30 million.
Appendix 5B is attached.
