Bounty will receive a cash payment of $500,000 from Arc for a five percent interest in TP/15. A further $500,000 bonus will be paid to Bounty at such time as any future production from TP/15 reaches either five million barrels of oil or 20 petajoules of gas.
Managing Director of Bounty, Tom Fontaine, said the deal was an excellent one for the Company.
"The proceeds of the sale of the TP/15 interest to Arc will boost our cash position and allow Bounty to maintain its interests in its offshore Perth Basin permits through its upcoming 2D and 3D seismic programs," Mr. Fontaine said.
"This deal is one of several Bounty has recently concluded, nationally and internationally, whereby we have raised cash or farmed out interests to be free carried through significant work programs.
"In the past few weeks, Bounty has farmed out 1,500 kms of seismic and the drilling of a well in the Offshore Sydney Basin and a further 2,000 kms of seismic in the Great South Basin in New Zealand.
"We have also farmed out a substantial interest in AC/P 25 in the Vulcan Sub Basin to Hardman Resources Limited who will carry Bounty's costs in a planned 400 km seismic survey.
"The deal with Arc, combined with the planned program next year of 3,500 km seismic and drilling up to four wells in Australia and New Zealand plus our current two well drilling program in Tanzania, is setting Bounty up for an active year and positioning the company for significant growth over the next twelve months."
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