Since September, Bounty has farmed into two wells in Tanzania (offshore East Africa), farmed out seismic acquisition and drilling in the Offshore Sydney Basin, seismic acquisition in New Zealand's Great South Basin and in the Vulcan sub-Basin off the West Australian coast, is acquiring both 2D seismic and 3D seismic in the Offshore North Perth Basin and cashed up with the sale of interests in two of its permits in offshore WA.
The Tanzanian deal, which significantly expands Bounty's international interests, was undertaken with London-based Aminex and allowed Bounty to farm into the company's two petroleum exploration wells, Nyuni-1 and Okuza 1.
Drilling is currently underway at Nyuni-1 and will commence at Okuza immediately on completion of the Nyuni well. The Nyuni and Okuza prospects are estimated to hold recoverable reserves of up to 260mmbo or 870bcf of gas and 100mmbo or 390bcf respectively.
In October, Bounty finalised an agreement with UK company Electro Silica under which it will be free carried through seismic acquisition and drilling in its PEP 11 permit in the Offshore Sydney Basin.
For a 75% interest in the permit, Electro Silica will fund a 1,500 km 2D seismic program and 100% of the costs of drilling an exploration well in the permit. The seismic is planned for the first quarter of 2004, to be closely followed by drilling scheduled in mid-to-late 2004. The targeted structure is estimated to hold up to 1.2Tcf of recoverable gas.
Bounty will be the first explorer to drill the area adjacent to the 5 million-strong energy-hungry market of Sydney and the heavily industrialised central NSW coast.
Discussions on the commercialisation of a discovery in the permit are already underway.
Further expanding its relationship with Electro Silica, Bounty has farmed out a 25% interest to the company in its PEP 38215 permit in New Zealand's Great South Basin.
The deal free carries Bounty through the acquisition of 2,000kms of 2D seismic, scheduled to commence in the first quarter of 2004, and gives Electro Silica an option to drill an exploration well to earn a further 50%. Probable recoverable gas reserves estimates in the Toroa-1 structure indicate 0.9 Tcf and possible recoverable gas reserves of 2.2 Tcf. Structures with multi-billion barrel oil potential have been identified elsewhere in the permit.
An Expression of Interest in the sale of any gas discovered in the permit has already been provided by Methanex New Zealand Limited.
Closer to home in the Vulcan sub-Basin, Bounty has farmed out a 95% interest in its permit AC/P25 to Hardman Resources in return for a $50,000 cash payment and a carried interest through the acquisition of 400kms of 2D seismic.
Bounty's cash flow has been further boosted by the sale early this month to Arc Energy of a 5% interest in its Perth Basin permit TP/15 for $500,000.
Major activity is scheduled by Bounty for the Offshore North Perth Basin over the next 12 months. Bounty is currently acquiring 820kms of 2D seismic data in its WA-325-P permit and 660 kms2 of 3D seismic in permits WA-325-P and WA-327-P. Once interpreted, this seismic data will be used to determine the locations of at least one and up to three wells to be drilled in early 2004.
Bounty's extensive forward program consists of up to six wells in the next year including the current Nyuni-1exploration well (260mmbo or 870 Bcf recoverable) in offshore Tanzania (Bounty interest: 10%); a second Tanzanian well - Okuza-1 (100mmbo or 390 Bcf recoverable) immediately after Nyuni (Bounty interest: 10%); an exploration well in PEP 11 (1.2 Tcf gas recoverable) mid-to-late 2004 (Bounty 25%) and 1-3 wells in mid-2004 in WA-325-P and WA-327-P (Bounty interest: 10%).
In addition this newcomer to the local oil and gas industry will acquire 1,500kms of 2D seismic in the Offshore Sydney Basin permit PEP 11 in January 2004 (Bounty interest: 25%); 2,000kms of 2D seismic in permit PEP 38215 in the Great South Basin, NZ (Bounty interest 26.25%); 2D and 3D seismic in permits WA-325-P, WA-327P in the Offshore North Perth Basin and 400 km of 2D seismic in AC/P 25 (Bounty interest: 5%) as well as earning $550,000 cash through sales of various interests.
