Bounty Oil & Gas NL : Quarterly Activities Report & App 5B – QTR ended June 2022

ASX/MEDIA RELEASE

29 July 2022

Quarterly Activities Report – End June 2022

• Bounty completes 2021/2022 with strong oil revenues of $678,000 for the period and sales of $1.9 million (unaudited) for the year.
• Commences further appraisal drilling in Naccowlah Block after the period.
• Wells from previous 2020/2021 campaign interrupted by COVID are now in production
• Bounty ended 30 June 2022 in a strong position with cash and current assets at $3.3 million with nil debt.

• Oil Production/ Development – Naccowlah Block and Surat Basins

• Cooroo NW -7 records good oil shows from Hutton and Birkhead zones in 7km long Cooroo NW closure and is cased for production.
• Operator has identified 12 additional development and NFE (near field exploration) targets in Block with further appraisal drilling near Jackson planned.
• With oil prices at around A$150 per bbl work to commence production from Alton area, Surat Basin underway.

• Cerberus Project Carnarvon Basin WA

• Bounty has farmed into the Cerberus Project Carnarvon Basin offshore WA, to earn a 25% interest in shallow water targets with over 600 million barrels of oil potential.
• New preliminary seismic inversion of 3D seismic data has refined major stratigraphic oil plays which are Dorado lookalikes in the same Lower Triassic sequence as the hugely successful Dorado (344 MMboe 2C), Phoenix South and ROC (78 MMboe 2C) discoveries in the Browse Basin to the northeast.

Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B – June 2022

• Bounty holds options to increase its interest to 50% by contribution of further $9 million towards drilling costs in the Cerberus Project under the Farmin Agreement “(Agreement”) announced to ASX on 7 October 2021.
• Seismic data inversion analysis has identified other material drill targets on trend from other discoveries and this work supports the current drill target inventory.
• Pavo-1discovery in Bedout Sub-Basin, WA has materially de-risked current inventory of Cerberus Triassic age drill targets.

Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B – June 2022

Oil Business – Production:

Bounty produces oil from the Naccowlah Block in SW Queensland. Average realised oil price for the quarter was a record AUD 165/bbl.

Bounty expects to commence oil production from the Alton area, Surat Basin, SE Queensland in late 2022.

Bounty’s unaudited petroleum revenue production and sales for the quarter and full year ended 30 June 2022 are summarised below.

Revenue:

1. GST exclusive rounded to nearest $1,000 (2) Naccowlah Block

Production:

Oil Business – Production and Development:

SW Queensland

ATP 1189P Naccowlah Block and Associated PL’s – Bounty 2%

Location: Surrounding Jackson, Naccowlah and Watson Oilfields

Background – Summary

The Naccowlah Block comprises 1,804.5 km2 approximately 6% of which is covered by ATP 1189 (N) and 1 Potential Commercial Area (PCA) application and the remainder in 23 petroleum production leases (PL’s) and 3 PL applications.

Activities during the Quarter

Principal activities during the quarter were continued oil production and recommencement of the drilling programme. Cooroo NW-7 which reached TD on July 4 recovered good oil shows in both the Hutton and Birkhead Formations – the primary targets. It has been suspended as a future oil producer.

Significant Activities Next Quarter – 2022

The Operator is in final planning to drill additional appraisal and NFE wells in the Jackson and Watson areas of the Naccowlah Block. Further planning by the Operator includes preparations to build additional pipelines in the greater Cooroo/Natan-Bolan-Corella area of Naccowlah Block to transport the extra production oil from the recent successful drilling campaigns.

Oil Business – Development:

Southern Surat Basin Onshore Queensland

PL 2 Alton Oilfield Bounty – 100%;

Location: 70 km northeast of St. George and 440 km west of Brisbane, SE Queensland.

Background

The location of Bounty group Southern Surat Basin interests is shown below. Alton has had historical production of over 2 million barrels from the early Jurassic age Evergreen Formation.

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 bbls 2C recoverable oil in proven pools for development.

Activities during the Quarter and Next Quarter

Bounty has prepared compliance systems for Alton and submitted these to the Queensland regulator for approval so that we can recommence production, especially in light of higher oil prices.

2022 Plans

Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B – June 2022

Bounty is actively planning to work over 2-3 wells at Alton in 2022 and commence oil production while it generates a full field development plan aimed at commercialising previously announced 167,000 bbls of 2C contingent resource of from the Evergreen Formation. Further development will move on to include drilling an up-dip appraisal well at Eluanbrook in the northwest section of PL 2 B and up to 3 attic oil locations within Block 2 C – the Alton Pool. Initial production of 100 bopd is expected from the Evergreen Formation and then moving to develop further attic oil.

Surat Delineation/Exploration

Bounty will focus near term exploration on development of PL 2 Alton while reviewing new exploration targets in the areas adjacent to PL 2.

Major Growth Project:

Cerberus Project Offshore Carnarvon Basin WA – Bounty earning 25% with options to earn up to 50%

Location: 70 km. East of Barrow Island WA

Titles: EP 475, 490 and 491, TP 27 totalling 3,759 km2

Background:

On 7 October 2021 Bounty entered a farmin agreement with Coastal Oil and Gas Pty Ltd (“Coastal”) to earn a 25% interest in this shallow water oil project, offshore Carnarvon Basin, West Australia. The project is right in the heart of Australia’s most active oil production area and offers a large number of prospects and leads, many drill ready, with high case prospective resources of over 600 million barrels as previously disclosed.

The project is principally targeting oil in a lower Triassic source rock and reservoir sequence at the base of the Locker Shale, in lookalikes to the highly successful Dorado Project (2C reserves of 344 MMboe) being developed by Santos Limited and Carnarvon Petroleum Ltd in the Browse Basin to the northeast.