- Crude oil prices are anticipated to remain on the higher side amid rampant supply disruptions and surging demand.
- Bounty anticipates commencing oil production in the Alton area of the Surat Basin in Queensland by the end of 2022.
- Bounty is currently reprocessing 2D and 3D seismic data at Cerberus to refine 200+ million bbls targets for possible drilling in 2022.
In recent months, Russia’s unilateral action in the Ukraine invasion has drawn severe criticism from western countries. With more than half of the world, including most of the major economies, adamant about severing trade ties with Russia, the oil market is left heavily imbalanced. New oil producing assets need to come online to offset the Russian supply and meet rising demand. European Union (EU) leaders have already come to a conclusion to reduce their Russian oil imports by over 90% by the end of 2022.
Despite recent corrections, WTI crude oil 1-month futures traded at US$110.53 a barrel on 28 June 2022. The repercussion of the action would not just be adverse for the Russian economy but would also keep fueling the crude oil price higher. In fact, Citibank and Barclays have already raised their oil price forecasts for 2022 and 2023 and foresee that Russian oil exports could reduce by 1-1.15 million barrels a day by the end of 2022. On the back of high crude oil prices, let us discuss about an Australian company that intends to strengthen its position in the oil & gas market.
Distinguished oil and gas producing company Bounty Oil & Gas NL (ASX:BUY) was incepted in 1999 and then later on, was listed on the Australian Securities Exchange in 2002. It is generating handsome values for its investors and shareholders. The company follows an active growth strategy of pursuing an accelerated program of land acquisition, exploration and oil development. The constant focus on developing new assets and ramping up its existing operations have resulted in building up a strong balance sheet without liabilities and enhancing oil revenues.
Bounty anticipates commencing oil production in the Alton area of Surat Basin in Queensland by the end of 2022. Alton holds a historical production of over 2 million barrels from the early Jurassic age Evergreen Formation.
Cerberus – A new promising oil asset in the making
Currently, the company is focusing on ramping up its exploration efforts at the Cerberus Project in the Carnarvon Basin. In October, Bounty signed a farm-in agreement to pick up a 25% stake in the Cerberus Project. The project stretches over 3,759 km2 and comprises four tenements at the centre of the largest oil-producing region in Australia.
Cerberus Project and other regional fields Source: Bounty Announcement 7 April 2022
Bounty would earn a 25% interest in the project upon investing AU$6 million towards the cost of exploration wells with an option for six months to acquire additional tranches of 25% by pro-rata contributions.