Bounty Farms Out Interest in Permit TP/15 Offshore Australia

Bounty Oil & Gas has completed negotiations with Voyager Energy Limited whereby Voyager will fund Bounty's share of costs associated with the drilling of the next two wells in permit TP/15 in the Offshore Perth Basin. The arrangement, which is capped at 20% above Joint Venture approved drilling budgets, includes the cost of completing, coring and testing one of the wells. In consideration for this funding, Voyager will earn a 5% interest in TP/15, with Bounty reducing its interest in the permit from 10% to 5%. Tom Fontaine, Managing Director of Bounty said the deal vindicated Bounty's assessment of the potential value of TP/15.

"TP/15 is highly attractive, with a number of prospects similar to the nearby Cliff Head oil field. The drilling program is scheduled to commence in January next year – we will drill one well at the Twin Lions prospect and have a second, contingent, well programmed at the Moondah prospect. "This deal with Voyager will allow Bounty to participate in this drilling at effectively no cost.

"This arrangement rounds off a very successful few weeks for Bounty in the Perth Basin", Mr. Fontaine said. "We have successfully tested our Woodada 19 gas well, brought Apache in as a partner to fund our seismic commitments in our WA-325-P and WA-327-P permits and now Voyager will fund our upcoming drilling commitments in TP/15. This allows Bounty to maintain an interest in these exploration permits at a very low cost."

The farmin is subject to the normal government and joint venture approvals. On completion of the farmin, interests in TP/15 will be: Bounty Oil & Gas NL with 5%; Arc Energy with 5%; AWE with 25%; Hardman Resources with 30%; Roc Oil with 20%; voyager Energy with 5% and Westranch Holdings with 10%.