Bounty Oil & Gas says that after a successful placement, repayment of a secured loan and repayment of funds from creditors after the placement, Bounty has approximately $2,400,000 of additional working capital.
These funds will be used by Bounty for an exploration and development program that includes:
- Further development at Utopia Oil field. Bounty has 40% interest in 2.86 million
barrels of P50 recoverable oil reserves.
- EP 412, onshore Carnarvon basin. From a prior farmin agreement, Empire Oil owes
Bounty a well on this permit.
- Tanzania. Currently evaluating 400 km of new seismic acquired in late 2005 to identify possible drilling locations.
- Possible joint ventures with White Sands Petroleum. Bounty owns one million ordinary shares in White Sands, in escrow for two years. Bounty has supported White Sands through to its listing on January 6th, and continues to discuss possible collaborative ventures.
- Other possible projects. Bounty is in discussions with various parties.
In addition, Bounty continues to progress farmout discussions on its Offshore Sydney Basin (PEP 11), and Great South Basin (New Zealand, PEP 38215) projects.
Executive Director Tom Fontaine stated:
"Bounty is now is a strong position to build the Company in 2006. Our strengths include, cash in the bank, oil in the ground, a portfolio of projects, and a new Board motivated to add to this portfolio to grow the company. I have supported White Sands Petroleum through to its recent, very successful listing on the ASX. The current Board of Bounty hopes to maintain a close working relationship with White Sands as a part of the growth strategy as it appreciates the advantages of having access to a drilling rig, especially with the well documented rig shortage onshore."