The Nyuni prospect has the potential to hold 260 mmbo or 870 Bcf gas, and is 20km from the Songo Songo-1 well which was a major gas discovery and is ready for commercialisation in local gas markets through an existing pipeline.

Subsequently, savvy investors are keeping an eye on the explorer for any news of an intersection, although the company has not confirmed the rumours and has stated that the drilling program is continuing with results to be released as they become available.

At the time of printing the shares price had eased slightly to 18 cents on a turnover of around three million shares.

Nyuni-1, began drilling in late September with the second well, Okuza-1, to be drilled immediately on its completion. The wells, are situated on small islands around 30km off the coast of Tanzania, and will be drilled to a depth of around 3,000m.

In both cases they are targeting gas in Neocomian sands (the reservoir section at the nearby Songo Songo Gas Field). Oil seeps recently discovered on Nyuni Island, directly above the Nyuni prospect, have enhanced the probability of encountering oil.

The company is also planning to drill the first offshore well in NSW PEP 11 in early 2004, 20km east of Newcastle. Bounty will be free carried through 1,500km seismic and one well valued at $15 million after farming out up to 75% of the project to UK-based Electro Silica.