Bounty: Carnarvon Basin Well to Spud Sunday

Bounty Oil & Gas NL said that the drilling of Parrot Hill-2 will commence March 4, 2007, with DCA Rig 7. Bounty has agreed to increase its interest in the EP 435 permit from 5% to 10% by paying 12.5% of the cost of Parrot Hill-2.

Parrot Hill-2 is an updip test of the Parrot Hill-1 well drilled by Ampolex in 1987, which intersected a 6.2m oil column. Parrot Hill-2 is located at an interpreted updip location at the culmination of mapped seismic closure, south from the Parrot Hill-1 oil discovery well.

The Parrot Hill-2 well will be drilled in two stages. Stage 1 with a small crew to drill the surface hole with air and foam prior to setting and cementing 9 5/8" casing at 200 meters. Stage 2 will be the drilling to the reservoir objective Birdrong Sandstone proposed at 1115 meters with 8 1/2" hole with a full 24 hour certified oilfield crew together with all the appropriate service company equipment and personnel to drill, evaluate and complete the well if a discovery. Total depth of the well is 1150 meters.

The EP 435 Joint Venture plan to utilize the existing Rough Range 1B Production Facility to process and truck any commercial oil discovered at Parrot Hill-2 utilizing Empire's oil tanker fleet and the existing contract with the BP oil refinery at Kwinana, Western Australia.

Empire Oil & Gas have announced that they plan to follow the Parrot Hill-2 well with several additional wells, including Whitlock Hill-1 in EP 412. Bounty will be free carried through the drilling of this well. Further announcements will be made when drilling in EP 412 commences.

The participants in the Parrot Hill-2, EP 435, Exmouth Sub Basin, Carnarvon Basin, Western Australia are:

  • Bounty Oil & Gas N.L. - 10%
  • Rough Range Oil Pty Ltd (Operator) - 38%
  • Phoenix Resources Plc - 25%
  • Australian Oil Company Limited - 17%
  • Black Fire Energy Limited - 10%