Highlights
- Corporate/Oil Production/ Development, Queensland
- Cash and liquid investment assets at 30 September $1.06 million; nil debt.
- Oil revenue for the quarter was $309,000.
- Bounty group producing and contingent oil reserves in Queensland now 313,000 bbls with
Watkins North NFE’s exploiting the additional Cooper Basin discoveries and Surat Basin
acquisitions.
- Naccowlah Block: Oil development in Cooper Basin is progressing with planning for additional
drilling in the Watson/Watkins complex and firm 2025 plans to access additional reserves at
Jackson Field.
- Surat Basin: During the period Bounty took 100% ownership of additional proved oil reserves
adjoining Alton and it continued field operations to bring Surat Basin fields back into
production in 2025.
- Jacobson (Cerberus) Project offshore Carnarvon Basin WA
- Operator has appointed new agent to work with WA regulators on Permit compliance so
exploration for deeper Permian gas is progressed.
- And has executed a binding Heads of Agreement (“HoA”) with a Rig Contractor to underpin
the key commercial terms of a rig contract.
Oil Business - Oil Development
Oil revenue is expected to be lower initially at $1.2 million pa as we move into early 2025 but with further additions
total production will move above $ 2.5 million pa later in 2025.
Australia confronts the challenge of finding more domestic oil and gas and producing those reserves. Bounty increased
its oil reserves and resources in 2024 and at the end of the quarter Bounty group producing and contingent oil reserves
in Queensland are now 313,000 bbls with Watkins North NFE’s exploiting the additional Cooper Basin discoveries and
Surat Basin acquisitions.
Bounty is looking forward to participation in further NFE and development drilling programs in Naccowlah Block:
Its Southern Surat Basin projects are 100% owned and operated.
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 late 2024 to early
2025.
Oil Business – Production and Development:
SW Queensland
ATP 1189P Naccowlah Block and Associated PL’s - Bounty 2%; Watkins North 10%
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).
Activities during the Quarter
Principal activities during the quarter were continued oil production. Production averaged 20 bopd net to Bounty
in this Quarter.
The operator has identified at least 9 sites for additional appraisal and NFE wells in the Jackson and Watson/Watkins
areas of the Block which will be subject to future drilling campaigns planned for 2025
Significant Activities Next Quarter
Optimise oil production from the tied in Watkins North
discoveries and commence program to extend
production in the Jackson Field by completing as yet
undeveloped reserves in the Westbourne Formation
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 in the adjacent map. 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).There are 154,000 bbls of 2P and 2C (Contingent) reserves within proven pools for development and
potentially another 100,000 bbls in immediate proved closures in the Evergreen.
Activities during the Quarter and Next Quarter
During the period Bounty took 100% ownership of additional proved oil reserves and facilities at PL46 adjoining
Alton and continued field operations to bring Surat Basin fields back into production in 2025.
This comprised Well Integrity and environmental monitoring and upgrading Environmental Management Systems.
Bounty also undertook detailed studies and seismic re-mapping aimed at exploiting proven oil in the Showgrounds
Formation at PL 46 Fairymount.
2024 Alton Area Plans
Bounty will continue field work to bring 2 wells at Alton back into production starting with Alton 3 well; while it
generates a full field development plan. Initial production of 100 bopd is expected from the Alton Fields to generate
additional gross revenue for Bounty in 2025 of ~$2 million.
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
Activities in 2024
Bounty and Asset Energy (Operator)
committed to drill an exploration well
for gas, most likely the proposed
Seablue 1 well on the Baleen Prospect.
Any future authorisation related to
drilling will require environmental
approvals.
PEP-11 continues in force and the Joint
Venture is in compliance with the
contractual terms of the Permit with
respect to such matters as reporting, payment of rents and the various provisions of the Offshore Petroleum and
Greenhouse Gas Storage Act 2006 (Cth).
Following conclusion of Federal Court of Australia Proceedings (WAD106/2022) consideration of the outstanding
applications for extension of PEP 11 reverted to NOPTA in 2023. In 2024 NOPTA made a recommendation to the
Joint Authority (see definition) that the Minister grant the joint venture’s applications.
Activities during the Quarter
During the quarter with no decision by the Joint Authority the operator commenced new proceedings in the Federal
Court of Australia seeking orders that the Commonwealth Minister and the Joint Authority be compelled to make
a decision on the applications. On 18th September 2024 the Federal Minister for Industry and Science made a
statement that he had carefully considered the PEP-11 Exploration Permit Applications; formed a preliminary view
that the Applications should be refused and gave the parties (including Bounty) sufficient time to make submissions
before any final decision. Bounty intends to make submissions and otherwise take such steps as may be advised to
preserve PEP 11 and preserve its rights as one of the registered holders.
The fact remains that NSW and Australia more broadly face a gas supply shortfall within the next two years, and
gas will play a vital role in the clean energy transition. However, at the date of this report the above conditions
continue to indicate a material uncertainty that may affect the ability of Bounty to realise the carrying value of
$0.60 million for its interest in the PEP 11 exploration permit in the in the ordinary course of business. This matter
was reported in the 2024 Annual Report.
Jacobson (formerly 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
quarter the operator; Coastal Oil & Gas (Coastal) appointed a new agent to liaise with the regulators and continue
renewal and extension applications. Bounty has assisted this process of obtaining the extensions of permit terms
and suspension of the current work programs. Potential funding options for drilling were explored.
The Project was renamed Jacobson in honour of oil industry veteran, the late Mr Ted Jacobson.
Bounty continued minor expenditure during the period with review of seismic interpretations. The re-processed 3D
seismic data demonstrated deeper gas potential in the Permian age sequences.
Heads of Agreement Executed for Carnarvon Basin Drill Program
On 8 August 2024, Bounty announced to ASX that the operator had executed a binding Heads of Agreement (“HoA”)
with a Rig Contractor that underpins the key commercial terms of a rig contract.
The key HoA terms and conditions are as follows:
• The program will consist of two (2) firm wells and one (1) contingent well of 20 days each with one
o optional well of twenty (20) days across the Jacobson Project
o On the current indicative schedule, the Jacobson program is slated for late 2025 second behind
another Operator subject to availability and timing of approvals;
o All regulatory approvals including tenure on the Jacobson titles;
o Funding by the rig contractor to complete modifications and deployment to Australia from its
current location in Asia;
Activities Next Quarter
Drill timing is dependent on progress by Coastal as operator to obtain an extension of the term of the Permits.
Further extensions will depend on drill funding. The remaining Permits extend beyond 2025. 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
Seismic re-processing for L 16 is planned for 2024.
During the quarter Bounty was updating resource and environmental compliance documentation.
Corporate
Payments to Related Parties during the quarter
$39,000 was paid to directors as remuneration and super contributions, $116,000 was paid to entities related to
the CEO towards management fees owing for prior periods, cost reimbursement and office rent (rounded ex-GST
figures).
Current Assets (unaudited) – 30 September 2024
At the end of the quarter cash, receivables and held for sale investments were $ 1.3 million.