Bounty Executes Formal Agreement Utopia Stake

Bounty Oil & Gas has executed the formal agreement to purchase of a 40% interest in the Utopia Oilfield located in south-western Queensland and is progressing discussions to commence a development drilling program. Bounty announced its agreement to acquire this interest on December 17, 2004.

Effective on January 31, 2005, Bounty has agreed to purchase all of Nuenco NL's interest in four graticular blocks in ATP 560P, which includes the Utopia Oilfield. The field produces from the Early Cretaceous Murta Formation and is the largest known Murta pool in the Queensland Eromanga Basin. The most recent technical review of Utopia (June 2004) has determined the field may contain up to 2.86 million barrels of recoverable oil (P50 estimate). Utopia is presently producing approximately 45 BOPD from 3 wells and has produced approximately 50,000 BO to date.

Bounty is also progressing discussions with field operator Oil Wells Inc of Kentucky and White Sands Petroleum Pty Ltd (White Sands) whereby White Sands can earn an interest in Utopia in return for the acquisition of 3D seismic and the drilling of a minimum of two horizontal development wells. Oil Wells Inc of Kentucky holds a 60% interest in the field.

Bounty Managing Director, Tom Fontaine said "We are pleased to conclude our arrangements to purchase a share of Utopia. Furthermore we are excited by the potential that a farminee such as White Sands can bring to this project. A combination of 3D seismic and targeted horizontal drilling should allow us to substantially improve production at Utopia and accelerate the efficient recovery of the field's oil reserves."

Oil Wells Inc of Kentucky is operator and has a 60% stake; Bounty Oil & Gas NL hold the remaining 40%.