Bounty Oil Increases Exploration Pace

Bounty Oil has accelerated activity in its oil and gas projects during the March-June quarter 2003, and plans are underway for drilling in several sites. Bounty Managing Director Tom Fontaine is optimistic about his company's up-coming projects.

"We have a very full schedule ahead of us, with several promising prospects involved," Mr. Fontaine said. "We are progressing work on our Australian permits in both the Onshore and Offshore Perth Basins and in Queensland.

"In the Onshore Perth Basin, drilling of the Leafcutter-1 oil exploration well is expected to commence on August 10, 2003 with site preparation underway since early this month. The well will test a prospect within the Woodada Gas Field production license estimated to contain up to 16.6 million barrels of recoverable oil.

"Prospects for recovering gas at Woodada have escalated as a result of a Proved Reserves Study we commissioned. "The study upgraded more than 10.4 Billion cubic feet (Bcf) of gas from the "Probable Reserves" category into the "Proven" category as of June 1, 2003. The reserves upgrade is a result of the success of Woodada-19 and additional data obtained to define the production forecast.

"Things are moving quickly in our Offshore Perth Basin permits too, with a contract awarded to Petroleum Geo Services (PGS) for the acquisition of more than 370 sq km of 3D seismic. "The seismic survey is designed to mature prospects and leads in permit WA-325-P in anticipation of exploration drilling as early as the second quarter of 2004. Planning for possible 3D seismic in WA-327-P is also underway. The acquisition program is scheduled to commence in November, subject to receipt of relevant government approvals.

"In PL 18 in Queensland, we expect to begin development of the Thomby Creek Oil Field in September/October this year with joint venture partners OME Group Ltd. "Thomby Creek is estimated to contain up to 2.5 million barrels of oil – less than three percent of this has been recovered to date. Prospects for this well look even better as it will be drilled up-dip of an already producing oil well in a known oil accumulation."

Mr. Fontaine said Bounty's philosophy was to pursue an energetic program of asset acquisition, evaluation and exploration and the last quarter's activities demonstrated this commitment.