Bounty Reports $663K Oil Revenue, $1.06M Cash, and 313,000 Barrels Reserves
Bounty Oil and Gas NL reports steady cash reserves and rising oil production in Queensland, while facing regulatory setbacks offshore. The company’s strategic developments and entitlement offer position it for growth in 2025.
- Cash and liquid assets total $1.06 million with no debt
- Oil revenue reached $663,000 for the six months ending December 2024
- Entitlement offer raised $231,000 to fund development and exploration
- Queensland oil reserves increased to 313,000 barrels with ongoing production and development
- Regulatory refusal of PEP 11 offshore permit extension triggers legal action
Financial Position and Capital Raising
Bounty Oil and Gas NL closed 2024 with a solid cash position of $1.06 million and zero debt, underpinning its operational flexibility. The company successfully completed an entitlement offer, raising $231,000 before costs, aimed at supporting ongoing oil development and exploration activities. Despite modest revenue of $663,000 over the half-year, Bounty is positioning for a production ramp-up in 2025.
Queensland Oil Production and Reserve Growth
In Queensland, Bounty’s oil production continues from the Naccowlah Block, with net production averaging 28 barrels of oil per day during the quarter. The company’s producing and contingent oil reserves in the region have grown to 313,000 barrels, bolstered by additional discoveries in the Cooper Basin and acquisitions in the Surat Basin. Notably, Bounty took full ownership of proved oil reserves adjoining the Alton field and is advancing field operations to recommence production in mid-2025, targeting initial output of approximately 100 barrels per day and annual revenue around $2 million.
Development and Exploration Outlook
Looking ahead, Bounty plans to optimize production from the Watkins North discoveries and extend output at the Jackson Field by developing undeveloped reserves in the Westbourne Formation. The company is also conducting detailed seismic re-mapping and environmental monitoring to support upcoming drilling campaigns. In the Surat Basin, Bounty’s 100% owned projects are central to its growth strategy, with further appraisal and development drilling anticipated.
Regulatory Challenges Offshore
Offshore, Bounty faces significant regulatory headwinds. The federal government refused extensions for the PEP 11 permit in the Sydney Basin, a critical gas exploration project. The joint venture is pursuing legal avenues to challenge this decision, underscoring the tension between Australia’s looming gas supply shortfalls and environmental regulatory frameworks. Meanwhile, in Western Australia’s Carnarvon Basin, Bounty awaits regulatory approvals before commencing exploration for deeper Permian gas at the Jacobson Project, with drilling timelines contingent on permit extensions and funding.
Operational and Corporate Governance
During the quarter, Bounty maintained disciplined expenditure, with payments to related parties including director remuneration and management fees totaling approximately $116,000. The company continues to prioritize environmental compliance and well integrity across its assets. With estimated funding to cover just over two quarters at current cash burn rates, Bounty’s recent capital raise and operational progress will be critical to sustaining momentum.
Bottom Line?
Bounty’s Queensland developments and legal fight offshore will define its trajectory as it seeks to scale production amid a tightening domestic energy market.
Questions in the middle?
- Will Bounty secure a favorable outcome in the PEP 11 legal challenge to preserve offshore exploration rights?
- How quickly can production ramp up in the Surat Basin to meet the company’s 2025 revenue targets?
- What funding strategies will Bounty pursue if cash reserves dwindle before production growth materializes?
