Coogee Resources Acquires Stake in AC/P 32

Bounty Oil & Gas reports that an agreement has been reached with Coogee Resources which gives Coogee the right to earn a 20% interest in exploration permit AC/P 32 by funding 27.5% of the upcoming Magnolia oil exploration well, plus a portion of seismic costs.

Coogee will be the Operator for the drilling program, which is scheduled to commence in July 2005, using Diamond Offshore's Ocean Bounty rig.

AC/P 32 is located in the Vulcan sub-basin off the coast of Western Australia, and is surrounded by existing oil and gas production and discoveries including Jabiru, Challis, Cassini, Skua, Swift and Montara.

The Magnolia prospect is well defined by 3D seismic and has the potential to hold 80 to 100 million barrels of recoverable oil.

Through this agreement and others previously executed with OPIC Australia Pty Limited and Adelphi Energy Ltd, Bounty will contribute less than one percent of the Magnolia drilling costs and will retain a 10.4% interest in the permit.

Bounty Managing Director Tom Fontaine said today that he regarded Coogee's participation as further confirmation of Magnolia's prospectivity. "Magnolia is an excellent prospect in a proven hydrocarbon prone area. Coogee will bring substantial local drilling and production expertise to the Joint Venture, ensuring an efficient drilling operation and the most effective solution for commercializing a discovery."

The agreement is subject to Coogee being appointed as Operator for the well and the joint venture approving Coogee's well plan. The agreement is also subject to the relevant authority allowing the drilling to commence after the current commitment date (27 March). As the AC/P 32 Joint Venture has committed to drilling in the first available rig slot, it is expected that this approval will be granted. Following the drilling of the well, Coogee has a once only right to withdraw from the permit. If Coogee elects to remain in the permit, it will become Operator of the permit and the AC/P 32 Joint Venture.

Drilling at Hadda-1 in WA-325-P remains scheduled to commence next Wednesday, 16 March.

Hadda-1 will be drilled with the Ensco 56 drilling rig and will take approximately 10 days. Defined by high-quality 3D seismic, the primary target is the Late Permian Dongara Sandstone, with secondary targets in sandstones within the underlying Irwin River Coal Measures. Planned total depth of the well is 1800 metres.

Estimates of potential recoverable oil reserves at the Hadda prospect range up to 65 million barrels.

The WA-327-P exploration well, Flying Foam-1, is now scheduled to be drilled in October. Estimates of potential recoverable oil reserves at Flying Foam range up to 30 million barrels.

Drilling at a third location (Blue Jacket; WA-325-P) remains contingent, but will most likely be scheduled later in the year with Flying Foam.

White Sands Petroleum - EDM-1 Rig
White Sands Petroleum Pty Ltd (WSP) has advised Bounty that its EDM drilling rig, currently being shipped from Norway, is expected to arrive in Brisbane on 16 March 2005. The rig is committed to drill a minimum of five wells in the Cooper Basin for Eagle Bay Resources NL. WSP will earn a 10% interest in the wells. Negotiations are continuing with other operators for the use of the rig. Bounty holds a 25% interest in WSP.