Highlights
- Bounty’s oil revenue totalled AU$1.61 million for the year ended 30 June 2024.
- Reserves in the Alton area have increased to 473,000 barrels.
- The company expects annual oil revenue to surpass AU$3 million by 2025.
- Bounty plans to expand drilling projects in the Naccowlah Block and commence production from the Surat Basin, Alton area, and SE Queensland.
Bounty Oil and Gas NL (ASX:BUY) made significant progress in its development and production efforts during the June quarter. Key activities included ongoing oil development in the Cooper and Surat Basins, along with lease renewals underway for the Naccowlah Block.
For the 12 months ended 30 June 2024, the company reported unaudited oil revenue of AU$1.61 million, with AU$376,000 generated in the June quarter. As of June end, Bounty held AU$1.57 million in cash and liquid assets and maintained a debt-free position.
Bounty expects initial oil revenue to range between AU$2.0 million and AU$2.5 million through kate 2024. With additional contributions, total production is anticipated to exceedAU$3 million annually as the company enters 2025. The increase in oil reserves in 2023 was achieved through drilling at the Watkins North discoveries, the Naccowlah Block, and low-risk acquisitions in the Southern Surat Basin.
Production and development at SW Queensland (New targets at Naccowlah Block)
During the quarter, Bounty focused on maintaining continued oil production, averaging 30 bopd net to the company. Asset Energy, the operator, identified new development and NFE (near field exploration) targets in the Naccowlah Block, which are planned for future drilling.
In the next quarter, there are plans to optimise oil production from the recently integrated Watkins North discoveries and evaluate additional drilling targets in the Naccowlah Block.
Increased reserves at Alton/Fairymount (Southern Surat Basin Onshore Queensland)
Bounty aims to accelerate oil production by upgrading systems and ensuring compliance. Recent acquisitions led to a re-evaluation of targets at Alton/Fairymount, boosting Alton area reserves to 473,000 barrels. With oil prices expected to rise, Bounty has started field work to bring two wells at Alton back online, starting with the Alton 3 well. The company is also developing a plan to commercialise 200,000 barrels of 2C contingent resource from the Evergreen Formation.
Plans include drilling an up-dip appraisal well at Eluanbrook and exploring three attic oil locations, aiming for AU$2.5 million in annual revenue.
Asset Prepares to Drill Seablue 1 well (PEP 11 - Offshore Sydney Basin)
The National Offshore Petroleum Titles Administrator (NOPTA) has recommended the extension applications submitted by Bounty and Asset Energy (operator), with a final decision pending. Meanwhile, Asset Energy, as the primary holder of PEP 11, is actively planning to drill the Seablue 1 well.
Bounty plans to engage in additional drilling projects in the Naccowlah Block, with at least nine new well sites identified in the Jackson and Watson/Watkins areas. The Southern Surat Basin projects are fully owned and operated by the company. Bounty expects to commence oil production from the Surat Basin, Alton area, and SE Queensland from late 2024 to early 2025.
Shares trade higher
BUY shares traded 25% higher to AU$0.005 on 31 July 2024.