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Bounty Oil & Gas NL Annual Report - 2011
CEO’S REVIEW
Introduction
Bounty has commenced the 2012 financial year in a strong position with combined oil revenue and investment
income for the 2011 financial year increasing to $3.274 million and strategic additions to its proved producing
oil reserves and acreage in the Cooper and Surat Basins.
As the scramble for oil reserves and conventional and unconventional gas continues particularly in eastern
Australia, we report that Bounty has a very strong land position. Although not achieving drilling success in its
first well in the offshore Sydney Basin, Bounty demonstrated the value of one of its land positions by farming
out to a third party who spent in excess of $25 million to drill a commitment well and thereby secure PEP 11
going forward while the multi TCF gas potential of the permit remains to be further tested.
Bounty has extensive acreage in Surat Basin and a strategic land position in the post Permian section of PL
218, South Australia, where oil discovered in Wakefield 1 still awaits testing and there is considerable interest
in the conventional and unconventional gas overlying the South Australian section of the Nappamerri Trough.
Bounty’s 15% interest in AC/P 32 offshore Western Australia provides a potentially major growth project.
Corporate and Capital Management:
Milestones during the year were:
• Record group oil revenue of $1.72 million (2010: $659,000).
• A profit on trading listed securities of $1.328 million
• Current assets at 30 th June 2011 of $6.04 million.
• Strong balance sheet with nil debt and net assets of $ 28.28 million.
• An unrealized mark to market gain on listed securities of $204,978.
• Net loss reduced to $0.25 million (2010: Loss $1.625 million).
• A well supported 1:10 non-renounceable rights issue at $0.10 to raise a total of $5.33 million before
expenses.
Oil Business
Bounty further developed its Core Oil Business in 2010/2011 as the oil price continued to stay around
US.$105 per bbl. We firmly believe that oil production is the fast route to convert hydrocarbon exploration
success to revenue.
With acquisitions and drilling in its Oil Business, Bounty improved revenue while advancing its other exciting
growth projects.
Development drilling in the Utopia Block has extended reserves. The recently completed 3D seismic survey
has indicated that the Utopia oil pool may contain up to 8 million barrels of 2P reserves above the oil water
contact.
Although Bounty has core oil projects we have continued steady progress towards a “company making”
offshore oil project in Australia by continuing to invest in seismic re-processing and studies in AC/P 32 in the
Timor Sea (Vulcan Graben). This project is advancing to a likely drill test of the 174 million barrel oil target at
the Wisteria Prospect.
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