Bounty Oil & Gas FY26 Revenue Falls 20%, Completes 1-for-30 Share Consolidation

Revenue Decline and Capital Restructuring

Bounty Oil & Gas NL (ASX:BUY) reported petroleum revenues of $865,000 for the financial year ended 30 June 2026, marking a 20% decline from the prior year due to lower than anticipated production. The company’s share consolidation at a ratio of 1-for-30 preceded a $4 million Tranche 1 placement to professional and sophisticated investors, raising fresh capital aimed at advancing its Australian oil and gas projects.

The recapitalisation included the conversion of convertible and loan notes totaling $299,000 into equity shares, further strengthening Bounty’s balance sheet. As of 30 June, the company held $2.9 million in unrestricted cash, providing a runway of approximately 2.3 quarters based on current operating cash outflows.

Queensland Projects Drive Operational Focus

Bounty continues to focus on its Queensland assets, with estimated producing and contingent oil reserves of 413,000 barrels of oil equivalent (bboe) in the Naccowlah Block. Production from ATP 1189P (Bounty’s 2% interest) generated $227,000 in revenue during the June quarter, contributing to the annual total. The operator, Santos Limited, has identified multiple near-field exploration (NFE) and appraisal well locations in the Jackson and Watson/Watkins areas, with four wells anticipated in FY27 to potentially bolster reserves and revenues.

Meanwhile, Bounty’s 100% owned Southern Surat Basin projects, including the Alton and Fairymount fields, remain in compliance and renewal phases. The company is advancing plans to redevelop up to two wells at Alton, alongside technical evaluations of deeper oil and condensate plays in the Showgrounds Formation. These initiatives align with a broader strategy to enhance production and extend field life.

Federal Court Upholds PEP11 Permit Refusal Amid Appeal

In a significant legal development, the Federal Court of Australia dismissed the judicial review application challenging the Joint Authority’s refusal to vary, suspend, or extend the PEP11 offshore permit in the Sydney Basin. The court acknowledged procedural fairness concerns but ruled them immaterial, upholding the permit refusal largely on public interest grounds. Bounty holds a 15% stake in PEP11, with Asset Energy Pty Ltd as operator.

Notably, Advent Energy Pty Ltd, Asset’s holding company, has filed an appeal with the Full Federal Court, engaging Senior Counsel to contest the judgment. The timing of the appeal hearing remains uncertain. Separately, a renewal application covering 50% of the original PEP11 area awaits consideration by the National Offshore Petroleum Titles Authority (NOPTA).

Western Australia and Other Exploration Efforts

Bounty’s Rough Range project in the Carnarvon Basin, Western Australia, remains focused on environmental compliance with the 3 million barrel Bee Eater prospect undrilled. Additionally, the Jacobson Project near Barrow Island is progressing through permit renewal applications, with the operator continuing engagement with regulators to secure extensions.

Use of Funds and Future Plans

The proceeds from the $4 million placement are earmarked for appraisal and development drilling in Southwest Queensland, facility upgrades in the Surat Basin, production enhancements at Rough Range, ongoing exploration offshore, and evaluating new petroleum opportunities. The company also plans to seek shareholder approval for a second tranche placement of $500,000, reflecting strong investor interest.

Director fees of $199,000 were paid during the quarter, including amounts related to exploration and development activities. No new tenements were acquired or relinquished during the period.