Bounty Oil & Gas reported steady production with $638K revenue for nine months, increased oil reserves to 413,000 barrels, and initiated a board reshuffle alongside a $299K convertible note raise ahead of a $4 million recapitalisation plan.
- Oil reserves in Queensland rise to 413,000 barrels
- Steady production from Naccowlah Block yields $638,000 revenue
- Board refreshed with new chairman and director appointments
- Convertible and loan notes raise $299,000 pending equity conversion
- Surat Basin project review underway amid recapitalisation plans
Queensland Reserves Climb on New Discoveries and Acquisitions
Bounty Oil & Gas NL (ASX:BUY) has increased its Queensland oil reserves and resources to 413,000 barrels by the end of 2025, buoyed by Surat Basin acquisitions and exploitation of recent Cooper Basin discoveries. The company’s petroleum revenue for the nine months to March 2026 reached $638,000, reflecting steady production primarily from the Naccowlah Block, where Bounty holds a 2% interest.
Production volumes for the period totalled 5,598 barrels of oil equivalent, with sales slightly lower at 5,420 barrels. The Naccowlah Block continues to deliver around 20-21 barrels of oil per day net to Bounty, supported by operator Santos Limited’s identification of appraisal and near-field exploration (NFE) well locations around Jackson and Watson/Watkins areas. Bounty anticipates drilling four NFE and appraisal wells during 2026 to bolster sales and reserves further.
Meanwhile, development efforts in the Cooper Basin are advancing with plans to tap undeveloped Westbourne Formation reserves in the Jackson Field, aiming to extend production beyond current levels.
Surat Basin Assets Under Strategic Review as Capital Raise Looms
Bounty’s 100%-owned Southern Surat Basin projects, including the Alton and Fairymount oilfields, hold combined 2P and contingent resources of 154,000 barrels within proven pools, with potential for an additional 100,000 barrels in nearby closures. The company is finalising compliance and environmental management upgrades, preparing for new production activities in 2026.
However, the Board has initiated a comprehensive review of all Surat Basin projects amid a management change and planned recapitalisation. This review is expected to conclude next quarter and will inform decisions on whether to develop or divest these assets. The recapitalisation plan includes a proposed $4 million share placement, subject to shareholder approval, aimed at strengthening Bounty’s balance sheet and funding growth initiatives. This follows a recent convertible and loan note raise of $299,000, which, pending approval at the May 18 general meeting, will convert to equity shares and attached options. The company has engaged Oakley Capital as its corporate advisor and lead manager for this funding effort, building on the momentum from its earlier $4M recapitalisation plan.
Board Reshuffle Signals New Direction
January saw a significant board renewal with Kane Marshall appointed as Independent Non-Executive Chairman and Robin Armstrong joining as an Independent Non-Executive Director. This transition coincided with the retirement of long-serving CEO Philip Kelso, and the stepping down of veteran directors Graham Reveleigh and Charles Ross, marking a strategic pivot to support Bounty’s growth ambitions in Australian oil and gas. These changes were noted as part of the company’s efforts to refresh its leadership and governance structure, consistent with the earlier board renewal announcement.
Legal Uncertainty Persists Offshore Sydney Basin
On the legal front, Bounty’s 15% interest in the PEP 11 offshore Sydney Basin gas exploration permit remains embroiled in a judicial review. The Federal Court hearing before Justice Jackson was conducted in February 2026, with the decision reserved. This legal uncertainty hangs over one of Australia’s largest untested gas plays, adjacent to the country’s biggest gas market. The case unfolds amid pressing East Australian gas supply shortages, including threats to industrial operations and extended coal power station activity. The protracted litigation adds a layer of risk to Bounty’s gas growth prospects offshore Sydney.
Cash Flow Tight but Backed by Funding Plans
Financially, Bounty ended the quarter with $316,000 in cash and equivalents, down from $503,000 the previous quarter. Operating cash outflows of $296,000 and investing outflows of $160,000 were partially offset by financing inflows of $281,000. The company estimates it has just over one quarter of funding available at current expenditure levels. Management attributes recent elevated expenses to one-off costs related to management changes and expects these to be non-recurring.
To address cash flow constraints, Bounty is pursuing shareholder approval for its recapitalisation plan, including the $4 million placement and conversion of convertible notes, which it anticipates will provide sufficient runway to continue operations and advance its projects.
Bottom Line?
Bounty’s growth hinges on successful recapitalisation and resolution of legal hurdles offshore Sydney, with Queensland assets underpinning near-term production.
Questions in the middle?
- Will Bounty’s Surat Basin review lead to asset sales or accelerated development?
- How will the Federal Court ruling on PEP 11 impact Bounty’s gas exploration strategy?
- Can the upcoming $4 million capital raise sufficiently extend Bounty’s funding runway?