Bounty Oil & Gas Raises A$4.5 Million with Attaching Options to Fund Drilling

Oversubscribed Placement Strengthens Bounty's Capital Base

Bounty Oil & Gas NL (ASX:BUY) has successfully raised approximately A$4.5 million through a placement of 882 million shares priced at 0.51 cents each. The placement was oversubscribed, reflecting investor appetite for the company’s ongoing Australian oil and gas development programs. Alongside the shares, investors receive free attaching options exercisable at 1 cent over four years, providing potential upside if Bounty’s share price recovers.

The raise is part of a broader recapitalisation strategy approved by shareholders in May 2026, following an initial announcement in March. A second tranche of shares and options, expected to raise an additional $500,000, awaits further shareholder approval, introducing some uncertainty about the final capital injection.

Capital to Drive Drilling and Facility Upgrades Across Key Projects

Proceeds from the placement will fund multiple initiatives, including appraisal and development drilling in Southwest Queensland, particularly at the Alton Field (PL2), where development studies and facility upgrades are planned. Production enhancements and remediation activities are also slated for the L16 site in Western Australia, while exploration efforts offshore continue.

These investments underscore Bounty’s focus on advancing its onshore petroleum production and exploration footprint, including interests in the Surat Basin and offshore Carnarvon Basin. The company also intends to assess new exploration opportunities, maintaining a pipeline of potential growth projects.

Lead Manager Oakley Capital Partners Secures Fees in Cash, Shares, and Options

Oakley Capital Partners Pty Limited acted as lead manager and corporate advisor for the placement, earning a 6% fee on gross proceeds payable partly in cash and partly in shares, plus options equivalent to half the options issued to investors. Additional securities tied to the second tranche are subject to shareholder approval.

Settlement of the first tranche is scheduled for 2 June 2026, with shares expected to commence trading the following day. The company retains flexibility to amend the timetable as needed, in line with ASX rules.

Capital Raise Builds on Recent Recapitalisation Efforts

This latest capital raise follows a comprehensive recapitalisation plan announced in March 2026, which included a 30-for-1 share consolidation and debt-to-equity conversions. Those measures aimed to strengthen Bounty’s balance sheet and fund its Queensland oil projects, a region where the company has reported growing reserves and production potential.

While the placement bolsters financial resources, the second tranche’s reliance on further shareholder approval means investors should watch upcoming meetings closely to gauge the full impact on Bounty’s capital structure. The attaching options also introduce a longer-term element to shareholder value, contingent on the company’s operational progress and market conditions.