Bounty’s Queensland Oil Reserves Reach 313,000 Barrels; Revenue Set to Double by 2026

Quarterly Production and Reserve Growth

Bounty Oil and Gas NL’s March 2025 quarterly report highlights a steady advance in its Queensland oil operations, with producing and contingent reserves now totaling 313,000 barrels. This increase reflects acquisitions in the Surat Basin and ongoing development projects in the Cooper Basin, including Watkins North and other near-field exploration (NFE) initiatives exploiting discoveries made in 2023.

Operationally, Bounty continues to produce oil from the Naccowlah Block in southwest Queensland, averaging around 20 barrels per day net to the company during the quarter. The company anticipates initial oil revenue of approximately $1.1 million per annum in mid-2025, with production and revenue expected to more than double to over $2 million annually by 2026 as additional reserves come online.

Development Plans in Surat and Cooper Basins

Bounty’s Southern Surat Basin projects, fully owned and operated by the company, are progressing with plans to bring fields such as Alton and Fairymount back into production. The Alton area, historically producing over 2 million barrels, is expected to restart production later in 2025, targeting an initial output of 100 barrels per day to generate roughly $2 million in gross revenue annually.

Meanwhile, in the Cooper Basin’s Naccowlah Block, the operator has identified at least nine additional appraisal and near-field exploration sites. Future drilling campaigns are planned for 2025 to tap into undeveloped reserves, particularly in the Jackson Field’s Westbourne Formation, aiming to optimize production from tied-in discoveries like Watkins North.

Offshore Exploration and Regulatory Challenges

Bounty’s offshore exploration portfolio includes a 15% stake in the PEP 11 permit in the Sydney Basin, New South Wales. The Federal Government’s refusal to extend this permit has prompted the joint venture to seek judicial review. The Federal Court has suspended the decision pending further orders, with a hearing scheduled for September 2025. This legal process introduces uncertainty but also underscores the strategic importance of PEP 11 as one of Australia’s most significant untested gas plays.

In Western Australia’s Carnarvon Basin, Bounty holds rights to earn up to 50% in the Jacobson (Cerberus) Project. The operator is awaiting regulatory approvals before commencing exploration for deeper Permian gas. Progress on drilling depends on permit extensions and funding, with Bounty monitoring developments closely.

Capital Raising and Financial Position

To support its development and exploration activities, Bounty completed a pro rata non-renounceable entitlement offer in early 2025, raising approximately $231,000 before costs. While modest relative to the scale of its projects, these funds contribute to ongoing operational needs and compliance efforts.

At quarter-end, Bounty reported cash and liquid investment assets of $0.78 million and maintained a debt-free balance sheet. Quarterly cash flows reflected a net operating cash outflow of $72,000, with total payments to related parties amounting to $129,000, including director remuneration and management fees.

Environmental and Compliance Focus

Bounty continues to prioritize environmental monitoring and compliance, particularly in its Southern Surat Basin operations. The company lodged a replacement tenure application for PL1182, replacing PL46, and emphasized well integrity and environmental management system upgrades. These efforts align with regulatory expectations and support sustainable development of its oil assets.

Looking ahead, Bounty’s strategy hinges on advancing drilling campaigns in Queensland, resolving regulatory uncertainties offshore, and leveraging its expanded reserve base to increase production and revenue. The company’s recognition of the Federal Government’s “Critical Mineral Reserve” policy as a rationale for establishing a “Critical Petroleum Reserve” signals its intent to align with national energy security priorities.