Bounty Earns Option in Cooper Basin Drilling Program

Bounty Oil & Gas has earned an option to participate in up to five wells to be drilled in Eagle Bay Resources' permit PEL 182 in the Cooper Basin in Australia.

A five-well back to back drilling program is scheduled to commence in PEL 182 in the second quarter of this year. The permit, awarded to Eagle Bay Resources last year, is situated in the South Australian portion of the Cooper Basin, approximately 80 km north of Santos' Moomba processing plant. It is close to a number of oil fields (Tirrawarra, Moorari and Fly Lake/Brolga) and surrounds a number of Santos production licenses.

Bounty may earn a 5% interest in each well by contributing 10% of the drilling costs to PEL 182 partner AuDax Resources Ltd. If Bounty participates in five wells, it will earn a 5% interest in the entire PEL. The wells are to be drilled by private company White Sands Petroleum Pty Ltd. using its state-of-the-art hydraulic rig, which is presently being mobilized into the country. White Sands, which is 15% owned by bounty, will alsso earn a10% equity in the wells.

Bounty and White Sands are presently completing negotiations whereby Bounty may increase its shareholding in White Sands by an additional 10% - 15%.