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- Crude oil is incredibly significant for Australia for two primary reasons, earning export revenues and assisting in securing energy security for the nation.
- WTI crude oil benchmark futures surged more than 55%, while Brent gained over 50.15% in 2021.
- Bounty anticipates commencing oil production in the Alton area of the Surat Basin in Queensland by the end of 2022.
- Bounty is currently reprocessing 2D and 3D seismic data at Cerberus to refine 200+ million bbls targets for possible drilling in 2022.
Crude oil benchmarks have gained over 50% in the last year. WTI crude oil benchmark futures surged more than 55%, while Brent gained over 50.15% in 2021. Despite rising coronavirus cases, in the shorter term, crude oil prices rode high on the momentum as WTI oil futures surged over 15% in the past month, while Brent rose roughly 12.5%.
Data Source: Eikon Refinitiv
Some oil traders suspect the price to catapult well above US$100 a barrel in 2022 with several oil exporters struggling to meet their production targets and expanding demand. As per the Energy and Resource quarterly, over 29% of the refinery feedstock were produced in the country. The report states that the domestic crude oil and condensate production declined to 334,000 barrels a day in 2019-20 but is anticipated to register a healthy growth in 2021-22 to 349,000 barrels a day.
Crude oil is incredibly significant for Australia for two primary reasons, it helps in earning export revenues and assists in securing energy security for the nation. Amidst the rampant energy crisis, every country across the world have been scourging hard to secure a reliable and stable crude oil supply.
Australian oil & gas exploration and production company Bounty Oil & Gas NL (ASX:BUY) incepted in 1999 and then later on listed on the Australian Securities Exchange in 2002, is generating handsome values for its investors and shareholders. The company follows an active growth strategy of pursuing an accelerated programme of land acquisition, exploration and oil development. The constant focus on developing new assets and ramping up its existing operations has resulted in building up a strong balance sheet without any liabilities and enhancing oil revenues.
In fact, the company earned a group petroleum revenue of AU$1.47 million from Queensland oil sales. In fact, strong oil prices contributed substantially to the top-level item as the realised oil price for the September quarter increased to AU$105 a barrel.
Bounty anticipates commencing oil production in the Alton area of Surat Basin in Queensland by the end of 2022. Alton holds a historical production of over 2 million barrels from the early Jurassic age Evergreen Formation.
Currently, the company is focusing on ramping up its exploration efforts at the Cerberus Project in the Carnarvon Basin. In October last year, Bounty signed a farm-in agreement to pick up 25% stake in the Cerberus Project. The project stretches over 3,759 km2 and comprises of four tenements at the centre of largest oil producing region in Australia.
Source: Annual Report 2021
Bounty would earn a 25% interest in the project upon investing AU$6 million towards the cost of exploration wells with an option for six months to acquire additional tranches of 25% by pro-rata contributions.
Bounty is currently reprocessing 2D and 3D seismic data at Cerberus to refine 200+ million bbls targets delineated in efforts to finalise drill hole locations for proposed 3 exploration wells in the project.
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