In its quarterly report, Bounty said the Baleen-1 (formerly Biggus-1) in PEP 11 was targeting 1.2 trillion cubic feet of recoverable gas reserves – enough to supply Sydney's current consumption rate for a decade.

Last month the Perth-based minnow was forced to request an extension to the PEP 11, as it had failed to secure a rig to start drilling the well before the August 5 deadline.

Joining Bounty in PEP 11 is Asset Energy, whose initial farm-in costs will be covered by a pooled development fund, MEC.

The offshore Sydney Basin was considered a significant exploration area, with large-scale structuring and a potential multi-trillion cubic feet of gas and condensate-charged Triassic and Permian reservoirs.

During the June quarter, Bounty produced 3883 barrels of oil, or an average of 42.67 barrels of oil per day, from four operating wells at the Utopia field in western Queensland production licence PL 412.

Sales revenue from the field was $A286,124 in the quarter, of which Bounty was entitled to 40% or $114,449.

Bounty said studies were underway to determine how production from the wells could be optimised.

“Work is in progress to reprocess some 2D seismic at the Utopia field,” Bounty said.

“This will allow a decision to be made as to whether 3D seismic should be shot.”

Bounty is partners in the Utopia oil field with Oil Wells Inc of Kentucky, the operator with a 60% stake.