Bounty Oil & Gas (ASX:BUY) Advances Growth Strategy with Reserve Expansion and Restructuring Push

Highlights

• Bounty reported revenue of AUD 638,000 for 9M FY2026, including AUD 148,000 in the March quarter from Queensland oil production.
• Queensland reserves (2P + 2C) increased to 413,000 barrels in 2025, supported by Surat Basin acquisitions and Cooper Basin developments.
• Naccowlah Block production averaged 20–21 barrels per day net, with quarterly output of 1,796 barrels and sales of 977 barrels.
• Surat Basin assets, including the Alton and Fairymount fields, are under strategic review for potential development or divestment amid recapitalisation plans.

Bounty Oil & Gas NL (ASX:BUY) highlighted a steady operational and strategic performance in its March 2026 quarterly update, indicating progress across production, reserves growth, corporate restructuring, and project development. The update highlighted revenue generation from Queensland operations, ongoing oil development in key basins, and governance changes aimed at repositioning the company.

Revenue and Production Performance

Bounty reported petroleum revenue of AUD 638,000 for the nine months to March 2026, with AUD 148,000 generated during the March quarter. Production from the Naccowlah Block and associated petroleum leases (BUY has a 2% interest) contributed 5,598 barrels of oil equivalent year-to-date, with sales volumes reaching 5,420 barrels. Quarterly production stood at 1,796 barrels, while sales volumes totalled 977 barrels.

Operationally, oil production remained steady at 20–21 barrels of oil per day. Meanwhile, the company is working with joint venture partners and Santos to finalise agreements related to outstanding financial obligations, expected to be resolved in the next quarter.

Expansion of Reserves and Development Activity

Beyond current production, Bounty has continued to build its resource base. During 2025, the company increased its combined producing and contingent oil resources and reserves (2P + 2C) in Queensland to 413,000 barrels. This growth was supported by acquisitions in the Surat Basin and Watkins North and other developments linked to earlier discoveries in the Cooper Basin.

In the Cooper Basin, oil development activities progressed with access initiated to reserves in the Westbourne Formation near the Jackson Field. Plans for the remainder of 2026 include four near-field exploration and appraisal wells in the Naccowlah Block, aimed at boosting both reserves and production output.

Surat Basin Review and Future Plans

Bounty has commenced a comprehensive review of its Surat Basin projects as part of a broader management transition and recapitalisation effort. The review, expected to conclude in the next quarter, will help define the future direction of these assets.

The company holds full ownership of assets in the southern Surat Basin, including the PL2 Alton and PL 1182 Fairymount oilfields. These fields contain an estimated 154,000 barrels of reserves within established pools, along with additional potential in nearby formations. Preparatory work during the quarter focused on compliance and environmental monitoring, with new production planning targeted for 2026.

Corporate Restructuring and Funding Initiatives

Significant board and leadership changes were implemented in January, signalling a shift toward stronger governance and strategic oversight.   

Kane Marshall stepped in as Chairman and Robin Armstrong joined as an independent non-executive director, while former CEO Philip Kelso has retired. These changes are aligned with the company’s broader restructuring efforts.

To support its next phase, Bounty raised AUD 299,000 through convertible and loan notes carrying a 10% annual coupon. Pending shareholder approval at a May 2026 meeting, these instruments are expected to convert into equity. Additionally, Oakley Capital was appointed to advise on funding and recapitalisation strategies.

PEP 11 and Offshore Projects

The PEP 11 offshore gas project remains under legal review following a judicial review hearing in February 2026. A decision from the Federal Court is pending. The project continues to meet regulatory requirements during this period.

Bounty Oil & Gas’ March 2026 quarterly report outlines a period of operational continuity alongside structural changes. With increased reserves, steady production, and a focus on financial restructuring, the company is progressing development activities while evaluating strategic options across its asset portfolio.

BUY shares traded at AUD 0.002 per share on 07 May 2026.