Bounty Oil and Gas reported $1.09 million in oil revenue for FY 2025, boosted reserves to 313,000 barrels, and plans to double production with Surat Basin operations starting late 2025. Meanwhile, a Federal Court challenge looms over its Sydney Basin offshore permit.
- FY 2025 oil revenue of $1.09 million at $117/boe average price
- Reserves increased to 313,000 barrels in Queensland via acquisitions and Cooper Basin development
- Surat Basin production expected to start late 2025, targeting $2 million revenue
- Federal Court hearing set for September on PEP 11 offshore Sydney Basin permit refusal
- Cash and liquid assets of $0.84 million with zero debt at June 30, 2025
Steady Revenue and Reserve Growth
Bounty Oil and Gas NL has reported an unaudited oil revenue of $1.09 million for the financial year ending June 2025, underpinned by an average realised crude oil price of $117 per barrel of oil equivalent. The company’s cash and liquid investment assets stood at $0.84 million at the end of the quarter, maintaining a debt-free balance sheet.
Significantly, Bounty’s producing and contingent oil reserves in Queensland have risen to 313,000 barrels, reflecting strategic acquisitions in the Surat Basin and ongoing development of discoveries made in the Cooper Basin in 2023. This reserve growth positions the company well for upcoming production expansions.
Surat Basin Production Set to Boost Revenue
Bounty is advancing plans to bring its Southern Surat Basin fields back into production during 2025 and 2026. The company anticipates that initial production from the Alton area will commence later this year, with expected output of around 100 barrels of oil per day. This is forecast to increase annual oil revenue to approximately $2 million in 2025-26, with further growth to $3 million anticipated in 2026 as development progresses.
Alongside production, Bounty is conducting appraisal drilling studies for deeper oil condensate plays at the Alton Field, aiming to unlock additional resources. The company also continues to optimize production in the Cooper Basin, targeting undeveloped reserves in the Jackson Field and tied-in Watkins North discoveries.
Offshore Exploration and Legal Challenges
On the exploration front, Bounty holds a 15% interest in the PEP 11 permit offshore the Sydney Basin, a high-impact gas exploration area adjacent to Australia’s largest gas market. However, the joint venture’s application for permit extensions was refused by the federal regulator, prompting a judicial review application. A Federal Court hearing is scheduled for mid-September 2025, which could determine the future of this strategically important permit amid Australia’s growing gas supply shortfall.
Meanwhile, in Western Australia’s Carnarvon Basin, Bounty awaits regulatory decisions before commencing exploration for deeper Permian gas at the Jacobson Project. The company holds rights to earn up to a 50% interest, contingent on permit renewals and funding arrangements.
Operational and Corporate Discipline
Bounty continues to manage its operations with a focus on environmental compliance and well integrity, particularly in the Surat Basin where tenure applications and environmental management system upgrades are underway. The company’s quarterly cash flow report shows ongoing expenditures aligned with exploration, development, and production activities, balanced by careful cost control.
Payments to related parties, including director fees and management services, were disclosed transparently, reflecting standard corporate governance practices. With no debt and a solid cash position, Bounty appears positioned to fund its near-term growth initiatives.
Bottom Line?
As Bounty prepares to ramp up Surat Basin production and awaits a pivotal court ruling offshore, investors will watch closely for catalysts that could reshape its growth trajectory.
Questions in the middle?
- Will the Federal Court overturn the PEP 11 permit refusal and what impact will that have on Bounty’s offshore prospects?
- How quickly can Surat Basin production scale to meet the company’s $3 million revenue target by 2026?
- What funding strategies will Bounty employ if exploration drilling opportunities in WA require significant capital?