Bounty Upbeat on Great South Basin Prospects

Reprocessing and remapping of seismic along with further analysis of log data has provided Bounty Oil with an optimistic outlook for its PEP 38215 permit situated in the Great South Basin in New Zealand.

Bounty lifted its probable recoverable gas reserve estimate for its main prospect to 1.4 trillion cubic feet. The company also believes it has additional possible recoverable reserves totaling 2.4 Tcf.

"We have reprocessed all seismic data in the permit and re-analyzed the data from a number of exploration wells in the area, including the 1976 Toroa-1 well, initially drilled by Hunt International Petroleum, which we believe intersected hydrocarbons but was unable to test due to mechanical problems," Bounty's managing director, Tom Fontaine, said.

"While we are still finalizing our studies, the preliminary work indicates the existence of considerable probable and possible gas and condensate reserves at Toroa and we're very optimistic about working the prospect.

First-pass mapping in the rest of the permit has confirmed the presence of numerous other prospects and leads with substantial oil and gas potential."

Bounty holds a 43.75% stake in the permit. The joint venture partners are Hardman Resources NL with 43.75%, Albatross Energy Ltd 10% and McKenzie Petroleum Ltd 2.5%. The partners hope to test PEP 38215 with a well late next year.