Bounty Oil Outlines Current Drilling Program

Bounty Oil and Hardman will be drilling an oil exploration well called Leafcutter-1 within the Woodada production license. Leafcutter-1 is a shallow (1400 meter) well, which will test lower Permian sandstones in zones similar to those that comprise the oil reservoir in The Cliff Head Oil Filed and the Hovea Field. A secondary target is the Carynginia gas reservoir will also be tested. Drilling at Leafcutter-1 is currently planned to commence in May 2003. The Leafcutter structure is estimated to have potential for 16 million barrels of recoverable oil. Woodada 19 tie-in and the successful workover of Woodada 11 in early 2003 have improved the field's productivity. Current gas production is 4.5 million standard cubic feet per day (MMscfd); this is a 45% increase over the average gas production rate for 2002. The wells are capable of producing at slightly higher rates, but are currently limited by the capacity of the gas plant compressor. It is the intention of the joint venture to replace this compressor by mid-2003. Two additional workovers are currently being evaluated that could add an additional 2-3 MMscfd. Bounty Oil holds a 25% interest and Hardman holds the remaining 75%.

The acquisition of 2,676 km of 2D was completed successfully and under budget for WA-325-P in November of last year.. Interpretation of the data has commenced, and numerous structures have been identified. The 2D data will be used to focus the 3D seismic program on the most prospective leads. 500 km2 of 3D seismic will be shot in WA-325-P in 2003,and a well is planned for 2004.

The company has signed an agreement with OME Group Limited to earn a greater interest in the Surat Basin PL 18 by helping to fund the drilling of an oil development well in the Thomby Creek Oil Field. OME will pay for half of the well cost. For paying 50% of the well cost, OME and Bounty will each earn 42.5% of the income from the well until the well is paid out. After the well is paid out, Bounty and OME will retain 25% interest in the production from the well. The project is a low risk oil production project as the well will be drilled up-dip of a known oil accumulation with most of the oil reserves unrecovered. The Thomby Creek Oil Field is estimated to contain 2.5 million barrels of recoverable oil, and less than 3% has been recovered. The well is expected to commence drilling in May 2003.

Bounty purchased 80 km2 of 3D seismic data in the Vulcan Sub-basin in AC/P 27, and is using state of the art seismic interpretation software to evaluate several prospects. Bounty holds a 100% interest in this permit.

Bounty increased its interest in AC/P 32 from 13.5% to 26%. The Joint venture, which includes the Chinese Petroleum Company will be purchasing and interpreting 170 km2 of 3D seismic data over several prospects.

Bounty has completed reprocessing over 6100 km of 2D data over PEP 38215 in New Zealand. The reprocessing has enhanced the quality of the data, and allows improved interpretation of the numerous prospects. Preliminary evaluation of the improved data confirms volumetric estimates of previous operators, which estimated over 4 billion barrels of recoverable oil potential in the permit. These estimates are based on mapping of seismic data, and have yet to be proven by drilling. Bounty is seeking a partner to fund the drilling of a well.