Bounty Oil & Gas NL : 12.03.2021 – Interim Financial Report – December 2020

BOUNTY OIL & GAS NL

(ABN 82 090 625 353)

INTERIM FINANCIAL REPORT

Interim Financial Report for the half-year ended 31 December 2020

(Including Directors' Report and Financial Report)

Contents	Page
Directors' Report	1- 4
Auditor's Independence Declaration	5
Consolidated Statement of Profit or Loss and Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Notes to the Consolidated Financial Report	10 - 16
Interim Financial Report Directors' Declaration	17
Independent Auditor's Review Report to the Members	18 -19

DIRECTOR'S REPORT

For the Half Year Ended 31 December 2020

The directors of Bounty Oil & Gas NL ("Bounty" or "the company") submit the interim financial report of Bounty and its subsidiaries ("the Group") for the half year ended 31 December 2020. The attached Bounty Interim Financial Report forms part of this report. In order to comply with the provisions of the Corporations Act 2001, the directors report as follow:

Directors

The following persons were directors of the Company during the whole of the half-year and up to the date of this report:

Graham Charles Reveleigh	(Non-Executive Chairman)
Roy Payne	(Non-Executive Director)
Charles Ross	(Non-Executive Director)

Mr Roy Payne was re-elected as a director of the company at the Annual General Meeting on 27

November 2020.

Review of Operations

For Bounty's schedule of permits, interests and acreages (see Bounty's 2020 Annual Report and Bounty's website:www.bountyoil.com).

1.

Highlights

Group Petroleum Sales

•  Petroleum revenue (mainly crude oil) for the half year to 31 December 2020 was $0.70 million on sales of 10,840 barrels of crude oil.

•  Petroleum revenue for 12 month calendar year to 31 December 2020 was: $1.63 million.

Oil development

•  Bounty expects steady to declining oil production volumes with stronger A$ oil prices resulting in $1.4 million sales for the year ended 30 June 2021.

•  Oil appraisal drilling was deferred at Naccowlah Block, South-west Queensland.

•  A further five (5) appraisal wells are programmed for 2021.

•  Naccowlah drilling will increase oil reserves.

Oil/Gas exploration

•  Planning for 2021 commencement of Surat Basin oil and gas production at PL 2 Alton and PL 441 Downlands.

•  During the period Bounty maintained its 15% interest in the Offshore Sydney Basin Exploration Permit PEP 11 and was awaiting a decision from the National Offshore

Petroleum Titles Authority to extend the permit beyond February 2021. A decision on this application is anticipated in the next 3 months.

•  There were no exploration impairments during the period.

2.

Overview

The principal activity of the group during the 6 months to 31 December 2020 was oil production and oil and gas exploration and development. Bounty's secondary activity is investment in listed securities. No significant change in the nature of these activities occurred during the financial half year.

During the period the economic entity made a net loss after tax of $594,000 (31 December 2019 half year loss: $2,865,000).

The operating loss was determined after taking into account the following material items:

•  Petroleum revenue of $700,000

•  Direct petroleum operating expenses of $536,000

•  All other general administration, expenses and employee benefits of $502,000

•  Group net loss before non-cash items of $317,000.

•  Non cash amortisation, rehabilitation and depreciation expenses of $276,000.

Revenue from continuing operations for the period was $700,000 (December 2019 HY: $1,973,000).

Petroleum revenue for 12 month calendar year to 31 December 2020 was: $1.63 million.

In the half year to 31 December 2020 Bounty invested total capital expenditure of $163,000.

Details of exploration and development operations and cash flows for the half year ended 31 December, 2020 have been reported by the company to the Australian Securities Exchange in the Quarterly Activity Reports and Appendix 5B for each of the quarters ended 30 September and 31 December 2020 and in additional announcements on particular items.

3.

Production Operations - ATP 1189P Naccowlah Block and Associated PL's; SW Queensland.

Revenue from production operations for the period was $ 0.70 million down 65% on the previous half year (HY: December 2019: $ 1.97 million). Revenue was derived only from crude oil produced from Bounty's production joint venture interest in ATP 1189 Naccowlah Block. At the end of the period Bounty's oil production averaged 58 bopd.

Oil Production

Revenue for the period was accrued from production of 10,485 bbls of oil and sales of 10,838 bbls.

Gas Production

There was no gas production in the period.

Production Facilities

During the period Bounty participated in installing pipelines and other production infrastructure in Naccowlah Block to lift oil from prior period discoveries and to transport produced oil to the transportation system.

Production optimisation is ongoing and contributes significantly to maintaining production. The pace of further development drilling is reviewed in the light of oil price movements.

4.

Oil Development Drilling Operations

Any drilling or production optimisation / well workover expenses have been classified under production operations. During the period, Bounty also expended $58,000 (December 2019 HY: $63,000) on other development operations.

In the period from July 2020 to the end of the reporting period Bounty had 5 wells from prior period drilling awaiting tie-in.

Wells from the financial year ended 30 June 2020 were progressively placed on production during the period.

Subject to oil price and recommendations from the Block operator; Santos Limited; Bounty will in 2021 participate in 5 Birkhead Zone development and appraisal wells at Natan, Bolan and Corella Fields and installing new production infrastructure.

During the period Bounty held 100% of the Alton Block JV (including the Alton Oilfield) Surat Basin, SE Queensland and an 81.75% interest in the surrounding PL 2 Alton Kooroon JV Blocks A and B. It held other development and exploration permits in the Surat Basin and is undertaking reservoir studies and well integrity work as a prelude to preparing to commence oil production from PL 2 Alton in the next period - 2021.

5.

Exploration and Evaluation Operations

During the period, Bounty expended $29,000 on exploration and evaluation in connection with its other wholly owned and joint venture interests located in Queensland, New South Wales and Western Australia, both onshore and offshore.

Corporate and Equity Issues

On 23 September 2020, Bounty issued a further 143,000,000 ordinary shares via placement at $0.01(1 cent). The shares were allotted pursuant to the Company's 15% placement capacity under ASX listing rule 7.1. As at 31 December 2020 Bounty had $ 1.53 million cash and no debt. At 31 December 2020 the value of Bounty's listed investments on a mark to market basis was $42,000.

Contingent liabilities and Contingent Assets

As at the date this report, there were no contingent assets or liabilities, other than those exploration commitments set out in Note 12 of the Financial Statements.

There was no litigation involving Bounty Oil & Gas NL during the half-year or subsequently.

Events occurring after the reporting period

No matters or circumstances have arisen since the end of the half year ended 31 December 2020 which have significantly affected or may significantly affect the operations of the company or its subsidiaries, the results of those operations, or the state of affairs of the company or its subsidiaries in future financial years.

Auditor's Independence Declaration

The auditor's independence declaration under section 307C of the Corporations Act 2001 in relation to the review for the half year ended 31 December 2020 is attached.