Bounty Oil & Gas (ASX:BUY) Backs Coastal's Rig Contract for Jacobson drilling program

August 09, 2024 11:35 AM AEST | By Aditi Sarkar

Bounty Oil & Gas (ASX:BUY) Backs Coastal's Rig Contract for Jacobson drilling program — Image source: Company website

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Highlights

Bounty supports Coastal's rig contract under the HoA for Jacobson gas exploration.

The Jacobson program includes two firm wells, one contingent well, and one optional well.

Key conditions include regulatory approvals, a US$250,000 booking fee, and rig inspections.

Bounty Oil & Gas NL (ASX:BUY) has announced that Coastal Oil and Gas Pty Ltd has executed a binding Heads of Agreement (HoA) with a rig contractor. Coastal, the operator of permits EP 475, EP 90, EP 491, and TP/27, has established key commercial terms for the rig contract through this HoA. The development is essential for exploring the Jacobson deeper gas prospects.

BUY plans to provide technical support to the operator, focusing on seismic reprocessing and interpretation.

Bounty, an oil producer & explorer, reports annual gross oil revenue of AU$1.6 million. The company holds significant assets in the Cooper/Eromanga and Surat Basins, Queensland, a 15% interest in PEP 11 offshore the Sydney Basin, and high-impact exploration interests in the Carnarvon Basin, Western Australia.

Key terms and conditions of the HoA include:

The program will comprise two firm wells and one contingent well, each lasting 20 days. Additionally, there will be one optional well of 20 days for the Jacobson project;
The Jacobson program is expected to commence in late 2025, subject to approval timings and rig availability, and is currently secondary to another operator’s schedule.

Data source: Company update

Operating rates and other terms are nearing finalisation.
Coastal will cover the costs associated with rig mobilisation and demobilisation on behalf of the partners.

The share price of BUY was AU$0.0050, up 25% at the time of writing on 09 August 2024.

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