Bounty Oil & Gas (ASX: BUY) Reviews Strategic Options Across Surat Basin Operations

Highlights

• Bounty Oil & Gas has entered an MoU with Jereh Energy Solutions Australia for a potential Surat Basin transaction.
• The company is assessing farm-out, partial divestment and full divestment options.
• Bounty completed its 1-for-30 share consolidation following shareholder approval.
• The company continues a strategic review of PL2 and PL1152 assets in Queensland.

Bounty Oil & Gas NL (ASX:BUY) has entered a pivotal phase across its Queensland operations as the company simultaneously advances strategic discussions for its Surat Basin assets, reviews redevelopment and divestment pathways, and prepares for further activity at the Naccowlah Block. With a newly signed MoU with Jereh Energy Solutions Australia, ongoing asset evaluations and future drilling plans emerging across key oilfields, the latest update places multiple operational and corporate developments in focus at the same time.

Surat Basin Talks Begin

Bounty announced that it has entered into a Memorandum of Understanding (MoU) with Jereh Energy Solutions Australia in relation to a potential divestment transaction involving its Surat Basin onshore assets.

Jereh operates across several energy-related areas including equipment supply, oilfield services, environmental remediation, and project operations and management. Under the MoU, both parties will work together exclusively for a defined period to assess and negotiate a possible transaction structure.

The potential arrangements under consideration may include a farm-out agreement, partial divestment, full divestment, or another strategic structure. The process is expected to involve technical, legal and commercial due diligence, alongside negotiations relating to definitive transaction documentation.

Bounty stated that the MoU forms part of its broader efforts to evaluate options aimed at unlocking value from the Surat Basin assets, reducing funding requirements, and advancing development activities through either partnership or divestment pathways.

The agreement remains non-binding apart from standard provisions such as confidentiality and exclusivity where applicable. Any final transaction remains subject to due diligence outcomes, execution of formal agreements, and completion of required approvals and conditions precedent.

Strategic Review Continues

In parallel with the MoU process, Bounty confirmed that it continues to undertake a strategic review of its PL2 and PL1152 assets.

The review includes assessing redevelopment opportunities for the fields, evaluating divestment pathways, and considering acquisitions that may complement existing development and exploration activities.

Share Consolidation Completed

Bounty also confirmed the completion of its share consolidation following shareholder approval received at the General Meeting held on 18 May 2026.

The consolidation was completed on the basis of one share for every 30 shares previously held. Following the consolidation, the company reported a total of 52,055,030 ordinary fully paid shares on issue under the ASX code BUY.

Focus on Naccowlah Operations

Bounty continues to hold a 2% interest in the Naccowlah Block Joint Operations (NBJO) located in southwest Queensland. The block includes ATP 1189 and 26 petroleum leases spanning approximately 1,794 square kilometres.

The Naccowlah Block contains the Jackson oilfield, recognised as the largest onshore oilfield in Australia, together with associated production infrastructure and pipelines. Santos Limited operates the leases.

During 2023, Bounty participated in a three-well near field exploration campaign. According to the company, two of the wells from that program contributed to a material increase in Bounty’s share of oil reserves within the block.

Moreover, Bounty noted that operator has identified several appraisal and near field exploration drilling locations in the Jackson and Watson/Watkins areas for potential activity during 2026 and 2027. The operator also plans to optimise production from recent discoveries and expand production from undeveloped reserves within the Westbourne Formation.

Shares of BUY traded at AUD 0.032, at the time of writing on 28 May 2026.