Bounty Oil Moving Forward with Exploration Program

Bounty Oil is moving forward with its exploration program offshore Australia. Due to tight rig availability the timing of some wells has been pushed back.

Vulcan Sub-Basin

The AC/P 32 Joint Venture is preparing for the drilling of the Magnolia prospect (estimated mean recoverable 85 Mmbo). The Operator (Coogee Resources) has advised that the estimated date for commencement of operations using the Ocean Bounty semisub is October 24th. Bounty oil will retain a 10.4% interest in the well and the permit after the drilling is completed. Bounty will be free carried through the drilling for all but for approx US$50K of costs.

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. 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.

There are a number of additional prospects and leads in the permit including Wisteria, which may hold up to 52 mmbo recoverable and the Azelea lead - at the shallower Cretaceous Puffin sandstone level - has potential for 234 mmbo recoverable. While Azelea is a higher risk, stratigraphic play, it could be tested as a secondary objective while drilling a well at Wisteria.

The AC/P 32 Joint Venture is comprised of Bounty Oil & Gas NL (10.4%), Westranch Holdings Pty Ltd (19.6% and operator), OPIC (25.0%), Adelphi Energy (15%), Coogee Resources (20.0% and farmin operator) and AWE (10%).

Offshore Perth Basin WA-325-P and WA-327-P

The Joint Venture is finalizing scheduling for the Flying Foam-1 exploration well in WA-327-P. While we would have preferred to drill the well as originally planned in October/November, we have been advised that rig scheduling for the Ensco-67 indicates that the well may be drilled after development work in the adjoining permit is completed. If that is the case, Flying Foam may not commence until the first quarter 2006.

Based on a previous agreement with Voyager (PB) Ltd, Bounty will only contribute 5% of the well costs for Flying Foam.

The WA-325-P Joint Venture is still planning to drill a second well in that permit when the Ensco 67 is available, preferably "back-to-back" with Flying Foam. The final decision on the well, and its timing, is contingent on the finalization of additional mapping and the integration of the encouraging results from Hadda-1 well.

The WA-325-P and WA-327-P Joint Ventures are comprised of Bounty Oil & Gas NL (7.5%), Roc Oil (WA) Pty Ltd (37.5% and operator), Apache Energy Ltd (37.5%), Voyager (PB) Ltd (12.5%) and Wandoo Petroleum Pty Ltd (5%).

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