Bounty (ASX: BUY) expects continued oil production from Naccowlah sites - Kalkine Media

Highlights

• Bounty plans to commence oil production from the Alton area in the Surat Basin in 2024.
• Recent new wells in the Naccowlah Block boosted the company’s production volumes and oil revenues.
• Recent acquisition of additional proved oil reserves near Alton has increased reserves/resources to 461,000 barrels.
• Bounty expects to maintain its oil production volumes from Naccowlah Block in 2024.

Operational since 1999, Bounty Oil and Gas NL (ASX: BUY) is an independent oil & gas explorer and producer, showcasing a steadfast commitment to the energy sector. Since its inception, the company has meticulously pursued a proactive strategy encompassing land acquisition, exploration, and oil development endeavours. Bolstered by an impressive balance sheet and burgeoning oil revenue, the company has maintained a debt-free status, solidifying its financial stability.

Recent project focal points have centred on onshore oil appraisal and development prospects in Queensland. The company prepares to commence oil production from the Alton area in the Surat Basin, Southeast Queensland, in 2024, while boasting  active oil production operations in the Naccowlah Block situated in Southwest Queensland.

New wells in Naccowlah Block boost production

The Naccowlah Block and associated PLs, spanning across 1,804 km² are located in Southwest Queensland.

Recently, the commencement of operations at Watkins North 1 and 2 significantly increased Bounty's production (75% quarter on quarter for the three-month period ended 31 December 2023), resulting in robust oil revenues. Petroleum revenues for the 6-month period ended 31 December 2023 stood at AU$0.84 million on sales of 6,143 barrels of crude oil.

Additionally, the operator has identified further development opportunities and near-field exploration targets within the Naccowlah Block, which will be the focus of future drilling campaigns.

Bounty expects to maintain its oil production volumes from Naccowlah Block in 2024.

Bounty eyes oil production in Surat Basin in   

Bounty fully owns the PL 2 Alton oilfield and PL 46 Fairymount oilfield in Surat basin, Southeast Queensland. Alton has a historical production record of more than 2 million barrels from the Evergreen Formation dating back to the early Jurassic age, and an additional 1.17 million barrels from the Showgrounds Formation at Fairymount.

Recently, the company acquired a 100% stake in additional proved oil reserves near Alton. With this development, Bounty reassessed the targets at Alton and Fairymount, resulting in an increase in reserves/resources in the Alton area to 461,000 barrels. The company intends to persist with field operations aimed at resuming production in the Surat Basin fields in 2024.

Plans ahead

Oil revenue is projected to increase, ranging between AU$2.0 and AU$2.5 million in 2024. Bounty anticipates engaging in additional near-field exploration (NFE) and development drilling initiatives within the Naccowlah Block.

Furthermore, Bounty foresees growth in oil production from its projects in the Surat Basin.

From the Naccowlah Block to the Alton area, Bounty has demonstrated its ability to capitalis on promising ventures, driving production growth and bolstering oil revenues. The company is advancing with plans to enhance oil production and engage in strategic exploration initiatives to maximise value for stakeholders.

BUY shares traded at AU$0.006 at the time of writing on 16 April 2024.