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Highlights
- Bounty reported half-year oil revenue of AUD 0.50 million from Queensland operations.
- Increased producing and contingent oil reserves to 413,000 barrels during 2025.
- Maintained steady output at the Naccowlah Block with added Westbourne Formation volumes.
- Progressed oil development activity in the Cooper Basin around the Jackson Field.
- The company advanced plans to return Alton wells in the Surat Basin to production in 2026.
- Leadership strengthened to support strategic growth and enhance governance.
With domestic oil and gas supply remaining a strategic priority for Australian energy markets, Bounty Oil & Gas NL (ASX:BUY) has delivered a December quarter update that underscores steady production, expanding reserve base, and multiple near-term development and growth opportunities across its onshore and offshore portfolio. The company reported half-year oil revenue of AUD 0.50 million, reflecting continued production from its Queensland assets.
Oil Production and Resource Position
During 2025, Bounty increased its producing and contingent oil reserves and resources (2P + 2C) to 413,000 barrels. This increase reflected acquisitions in the Surat Basin as well as outcomes from the Watkins North and other near-field exploration projects linked to Cooper Basin discoveries made in 2023. Oil development activity continued in the Cooper Basin, with access commencing to proved Westbourne Formation reserves around the Jackson Field.
Naccowlah Block Operations – Southwest Queensland
Bounty holds a 2% interest in the Naccowlah Block under ATP 1189P, with an associated 10% interest in Watkins North. The Naccowlah Block covers approximately 1,804 square kilometres and includes multiple petroleum production leases alongside a potential commercial area application.
During the quarter, oil production continued at a steady rate, with net production to Bounty averaging approximately 20–21 barrels of oil per day. The slight increase in output followed the introduction of Westbourne Formation oil reserves.
The operator identified at least nine potential locations for future appraisal and near-field exploration wells within the Jackson, Watson, and Watkins areas. Looking ahead, Bounty anticipates that four appraisal and near-field exploration wells may be drilled during 2026. Additional work is also planned to optimise output from Watkins North discoveries and extend production in the Jackson Field by completing undeveloped Westbourne Formation reserves.
Surat Basin Development Projects
In the Southern Surat Basin, Bounty holds a 100% interest in the Alton Oilfield (PL 2) and the Fairymount Oilfield (PL 1182). During the quarter, activity focused on regulatory compliance, environmental monitoring, well integrity reviews, and upgrades to environmental management systems. A replacement tenure application for Fairymount, designated PL 1152, remains pending.
Planning continued to bring two Alton wells back into production during 2026, commencing with the Alton 3 well. Initial production of approximately 100 barrels of oil per day is expected from the Alton area once production resumes, with gross annual revenue potential estimated at around AUD 2 million. Technical studies also progressed to assess deeper targets in the Showgrounds and Precipice formations and to plan an oil and condensate well at Eluanbrook Updip.
Offshore and Growth Projects
Bounty holds a 15% interest in PEP 11 in the Offshore Sydney Basin. During the quarter, the Joint Authority’s refusal of extension and variation applications was confirmed, and a judicial review hearing is scheduled for February 2026. Despite the decision, the permit remains in force pending renewal, with the joint venture continuing to meet regulatory and contractual obligations.
In Western Australia, Bounty holds rights to earn up to 50% in the Jacobson Project offshore Carnarvon Basin and retains 100% ownership of the Rough Range Project (L16). At Jacobson, permit renewal processes and funding options for drilling continued, while seismic reprocessing and compliance updates progressed at Rough Range, where reprocessing activities are planned for 2026.
Strengthening Strategy and Leadership
Bounty implemented several key changes to its management and Board of Directors following the end of the quarter. CEO Philip Kelso has retired, and Kane Marshall has been appointed as the new Independent Non-Executive Director and Chairman of the Board. Additionally, Robin Armstrong has been appointed as an Independent Non-Executive Director. Meanwhile, Sachin Saraf will continue in his role as Executive Director. These leadership transitions are designed to strengthen Bounty's position as an ASX-listed oil producer and explorer.
Bounty’s December quarter update highlights a portfolio characterised by steady oil production, expanded reserve base, and continued progress across multiple assets. Ongoing development planning, regulatory proceedings, and exploration activity indicate a portfolio focused on maintaining output while advancing future growth options. Recent leadership enhancements and ongoing exploration initiatives position the company to strengthen its footprint in the Australian oil and gas sector while preparing for future production growth and value creation.
At the time of writing, BUY shares traded at AUD 0.003 on 06 February 2026.
