Bounty Oil & Gas, through its joint venture operator Asset Energy, has initiated a judicial review against the refusal to vary and extend the PEP-11 offshore petroleum exploration permit. The legal challenge could reshape the future of this key Sydney Basin asset.
- Asset Energy files Federal Court judicial review over PEP-11 permit decision
- Joint Authority refused applications to vary, suspend conditions, and extend PEP-11
- Application seeks to quash decision and mandate reconsideration by Joint Authority
- Bounty holds 15% interest in PEP-11 offshore Sydney Basin permit
- Judicial review outcome could impact Bounty’s exploration and production plans
Background on PEP-11 and the Dispute
Bounty Oil & Gas N.L. (ASX: BUY) has confirmed that Asset Energy Pty Ltd, the operator of the PEP-11 Joint Venture, has lodged an originating application for judicial review in the Federal Court. This legal action challenges a decision by the Commonwealth-New South Wales Offshore Petroleum Joint Authority, which refused two applications submitted in January 2020 and March 2021. These applications sought to vary and suspend conditions of the Petroleum Exploration Permit NSW-11 (PEP-11) and to extend its term.
PEP-11 is a significant offshore exploration permit located in the Sydney Basin, where Bounty holds a 15% direct interest. The permit has been a focal point for exploration efforts, with the joint venture partners aiming to unlock potential hydrocarbon resources in this underexplored region.
Details of the Judicial Review Application
The judicial review, filed under the Administrative Decisions (Judicial Review) Act 1977 and the Judiciary Act 1903, seeks three key outcomes: to quash or set aside the Joint Authority’s decision, to declare the decision void and of no effect, and to remit the original applications back to the Joint Authority for reconsideration according to law.
Asset Energy, a wholly owned subsidiary of Advent Energy Ltd, is acting as the operator for the joint venture partners, including Bounty. The move to seek judicial review underscores the strategic importance of PEP-11 to the partners and their commitment to pursuing exploration opportunities despite regulatory setbacks.
Implications for Bounty and the Sydney Basin Exploration Landscape
This legal challenge comes at a critical juncture for Bounty, which reported gross oil revenue of A$1.6 million per annum from its Cooper/Eromanga and Surat Basin assets. The PEP-11 permit represents a growth asset with potentially high impact exploration upside offshore Sydney.
The refusal by the Joint Authority to vary and extend the permit conditions has stalled progress on the permit, raising questions about the future timeline for exploration activities. A successful judicial review could reopen the door for the joint venture to advance its exploration plans, potentially unlocking new reserves and enhancing Bounty’s production profile.
Conversely, a protracted legal process or an unfavorable ruling could delay development and weigh on investor sentiment, given the permit’s strategic value.
Looking Ahead
CEO Philip Kelso has authorised the release of this announcement, signalling transparency and readiness to engage with stakeholders as the judicial review unfolds. Market participants will be watching closely for updates on the court proceedings and any subsequent regulatory decisions.
For Bounty, the outcome of this judicial review will be pivotal in determining the trajectory of its offshore exploration ambitions and its broader growth strategy in the Australian oil and gas sector.
Bottom Line?
The Federal Court’s decision on PEP-11 will be a defining moment for Bounty’s offshore exploration future.
Questions in the middle?
- What legal arguments will Asset Energy present to overturn the Joint Authority’s decision?
- How might the judicial review outcome influence regulatory approaches to offshore permits in Australia?
- What are the potential financial and operational impacts on Bounty if the permit extension is denied?