Bullish Bounty keen to fast-track Surat Basin growth

Buoyed by rising prices, Bounty Oil & Gas is fast tracking plans for additional oil and gas development in the Surat Basin this year. A strengthening balance sheet from its producing Naccowlah Block in South-West Queensland would underwrite the start of the Surat Basin oil production, leading in to three appraisal drills to exploit proved reserves, the company said. Increased oil prices, a strong US Dollar relative to the Australian Dollar and available refinery capacity in close proximity to those development assets are all helping push them over the line. Bounty highlighted the role it could play in meeting Australia's energy security needs in announcing its plans to market for the acceleration or Surat Basin works. "Bounty management sees macro-economic conditions tightening not only in domestic and international oil markets but also with the challenge of the energy transition," the company stated. "Oil and its refined products fundamentally supports economic activity and food production. Bounty is focused on development of its existing production and Surat Basin development leases as Australia’s reliance on imported fuel products de-risks Bounty’s Australian assets. "Australia needs leadership from the energy industry to tackle these challenges and Bounty is ideally positioned to be a major player in addressing Australia’s energy security needs through its array of oil and gas appraisal and development opportunities. "Importantly, it sees very few junior peers on the ASX with plans to increase domestic oil and gas output which in term will fund further growth opportunities." Bounty’s oil resources in the Southern Surat Basin are light oils (high API) derived from Permian coals (Cooper Basin equivalent) and offer 360,000 bbl 2C recoverable oil in proven pools for development. Its assets include the Alton oilfield, 70km north-east of Saint George and 440km west of Brisbane, which has a historical production record of more than two million barrels. The company is achieving oil prices above A$150 per barrel for its current production, bringing in revenue of about $240,000 per month. With that cashflow to lean on, opportunities include exploitation of the Alton oil field and the Eluanbrook oil/condensate resource. Bounty is also looking at delivery of gas to the domestic market from its Surat Basin Downlands gas field. Subject to facilities review there is a readily available market to deliver gas into the Silver Springs Wallumbilla Pipeline at historically high east coast gas prices. The company is also looking to appraise and subsequently develop adjacent oil and gas sites complementary to its assets. "As market conditions have changed so has sentiment towards investment both in terms of alternative financing and development farm-in partners," the company stated. "Bounty is currently exploring these avenues and will discuss the current market dynamics, production growth and new venture opportunities at a webinar on 29 June 2022 by COO Kane Marshall."

Bullish Bounty keen to fast-track Surat Basin growth

Industry Queensland

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