Electro Silica will fund the acquisition of 1500km of 2D seismic within the permit to earn the quarter share in PEP 11, located immediately adjacent to the heavily populated and industrialised New South Wales central coast, which has yet to be the focus of any drilling programs.

The Basin's onshore acreage has been targeted by a number of companies and a significant number of wells, which have successfully flowed gas or encountered oil shows.

PEP 11 covers 8,267sq.km, which Bounty considers to have large-scale structuring and potentially multi-tcf gas and condensate-charged Triassic and Permian reservoirs.

Mapped prospects and leads are generally located less than 50km from Australia's largest energy market, the Sydney-Wollongong- Newcastle greater metropolitan area, a population centre of around 5 million people.

Bounty has identified a large target located in the northern sector of the permit in an average of 125m of water. This structure is situated on the crest of the Offshore Uplift on a thrusted anticline. With a closure of over 120km.sq, the feature has potential to hold up to 1.2 tcf of recoverable gas.

In addition, the prospectivity of the northern sector of the permit has been further enhanced by the presence of apparent hydrocarbon seeps. The total depth of a well to test this prospect would be around 1,500m.