BOUNTY OIL & GAS NL Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2021
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ASX/MEDIA RELEASE
28 January 2022
Quarterly Activities Report - End December 2021
- Highlights
- Bounty has farmed into the Cerberus Project Carnarvon Basin offshore WA, to acquire a 25% interest in shallow water targets with over 600 million barrels of oil potential.
- New seismic data received in the quarter proves major stratigraphic oil plays which are Dorado lookalikes in the same Lower Triassic sequence as the hugely successful Dorado (344 MMboe 2C), Phoenix South and ROC (78 MMboe 2C) discoveries in the Browse Basin to the northeast
- The Cerberus Honeybadger Prospect - EP 491 has a mean prospective resource of 294 MMbbls oil
- Australian dollar oil prices have increased to in excess of A$100/bbl this year.
- Oil Development - Naccowlah Block
- Naccowlah Block oil delineation and development drilling will recommence in 2022 with a development well at Cooroo NW and a potential second well.
- With oil prices at over $100 per bbl Naccowlah production to continue Bounty oil revenue.
- Gas Exploration
- The PEP 11 joint venture are preparing a submission to NOPTA in response to the recently announced unprecedented Federal government decision to refuse further extensions of PEP 11.
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For personal use only
Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2021
Oil Business - Production:
Bounty produces oil from the Naccowlah Block in SW Queensland. Average realised oil price for the quarter was a record AUD 117/bbl.
Bounty expects to commence oil production from the Alton area, Surat Basin, SE Queensland in 2022.
Bounty's unaudited petroleum revenue production and sales for year to date and for the quarter ended 31 December 2021 are summarised below.
Revenue:
QTR 2 ($) | YTD ($) | |||||||||
ATP 1189P(2) | Bounty Share (2% Interest) - Oil | 429,000 | 817,000 | |||||||
Total Revenue (1) | 429,000 | 817,000 | ||||||||
(1) | GST exclusive (2) Naccowlah Block | |||||||||
Production: | ||||||||||
QTR 2 (Bbls) | YTD (Bbls) | |||||||||
ATP 1189P | Bounty Share (2% Interest) bbls | 3,417 | 6,886 | |||||||
Total Production bbls | 3,417 | 6,886 | ||||||||
Sales: | ||||||||||
QTR 2 (Bbls) | YTD (Bbls) | |||||||||
ATP 1189P | Bounty Share (2% Interest) bbls | 3,613 | 7,254 | |||||||
Total Sales bbls | 3,613 | 7,254 | ||||||||
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 1,804.5 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 recompletions and stimulation of zones in existing wells and ongoing production optimisation.
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Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2021
For personal use only
Significant Activities Next Quarter - 2022
Bounty has approved the drilling of a development at Cooroo NW Field in 2022. A potential further well is budgeted.
The operator is also preparing to build additional pipelines in the greater Cooroo/Natan-Bolan-Corella area of Naccowlah Block to transport additional developed oil from the recent successful drilling campaigns.
Oil Business - Development:
Southern Surat Basin Onshore Queensland
PL 2 Alton 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.
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Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2021
For personal use only
Bounty's oil resources in the Southern Surat Basin are light oils (high API) derived from Permian coals (Cooper Basin equivalent) and offer 360,000 bbl 2C recoverable oil in proven pools for development.
Activities during the Quarter and Next Quarter
Bounty has prepared compliance systems for Alton and submitted these to the Queensland regulator for approval so that we can recommence production, especially in light of higher oil prices.
2022 Plans
Bounty is actively planning to work over 2-3 wells at Alton in 2022 and commence oil production while it generates a full field development plan aimed at producing 167,000 bbls of potential recoverable oil of from the Evergreen Formation. Further development will 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 Block 2 C - the Alton Pool. Initial production of 100 bopd is expected from the Evergreen Formation and then moving to develop attic oil.
Surat Delineation/Exploration
Bounty will focus near term exploration on development of PL 2 Alton while reviewing new exploration activities in the areas adjacent to PL 2.
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Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2021
For personal use only
Major Growth Project:
Cerberus Project Offshore Carnarvon Basin WA - Bounty earning 25%
Location: 70 km. East of Barrow Island WA
Titles: EP 475, 490 and 491, TP 27 totalling 3,759 km2
Background:
On 7 October 2021 Bounty entered a farmin agreement with Coastal oil Pty Ltd. (Coastal) to earn a 25% interest in this 600 mmbbl potential oil project, offshore Carnarvon Basin, West Australia. The project is right in the heart of Australia's most active oil production area and offers a large number of prospects and leads, many drill ready, with prospective resources of over 600 million barrels.
Bounty is earning its 25% by paying A$6 million towards the cost of drilling 3 wells and retains an option for six months to earn two additional tranches of 25% each by pro rata contributions to the well costs or finding farmin partners. The project is principally targeting oil in a lower Triassic source rock and reservoir sequence at the base of the Locker Shale, in lookalikes to the highly successful Dorado Project (2C reserves of 344 MMboe) being developed by Santos Limited and Carnarvon Petroleum Ltd in the Browse Basin to the northeast.
Bounty reviewed this project in the later part of FY 2020/21 and finalised the agreement in October 2021. Bounty simultaneously announced on 15 October 2021 the farmin, a $2.74 million capital raising to finance the farmin, and the appointment of Mr Kane Marshall as Chief Operating Officer to head up the new WA office and manage the project as it moves to drilling.
The attraction of this area is twofold, excellent prospective volumes offering reserves greater than Bounty's onshore projects, and shallow water jack up drilling with abundant opportunities to achieve economies of scale by participating in drilling groups, resulting in costs only a few times more than onshore but with huge rewards.
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Bounty Oil & Gas NL published this content on 28 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 January 2022 07:45:01 UTC.
