The issue will be made up of 9 million shares at 15c and 3.4 million options with the funds being used to farm into Aminex's two petroleum exploration wells off the Tanzanian coast in East Africa, from early September 2003.
Even though the prospects are 30 km offshore, they both had small islands above them allowing the drilling to be undertaken with a conventional land drilling rig.
The estimated drilling cost for both wells is $US10.8 million with Bounty earning a 10% interest in the 2,600sq.km Nyuni Block by contributing 10% of the well costs. In the event of an oil discovery Bounty will contribute an increased share of the drilling costs.
Bounty managing director, Tom Fontaine, said the two wells, Nyuni-1 and Okuza-1, would test large structural features delineated by 2D seismic. The first well would be drilled on the Nyuni prospect.
"The Nyuni prospect may hold recoverable reserves of up to 260mmbo or if gas is present, 870bcf. Recoverable reserve estimates at Okuza range up to 100mmbo or 390bcf."
Located 20km south west of the Nyuni prospect the Songo Songo-1 gas discovery is the closest exploration well and contains proved and probable reserves of 590bcf.
The field is due to deliver gas to the capital Dar es Salaam in 2004 through a common-user pipeline system, currently under construction. If gas is discovered in the Nyuni Block, capacity in this pipeline will be available to the Nyuni Block co-venturers.
"Whilst we believe the Nyuni and Okuza structures may contain oil, a gas discovery could likely be commercialised because of this infrastructure," said Fontaine.
Partners in Nyuni block are Bounty Oil & Gas NL 10%, Ndovu Resources 60% (operator and a wholly owned subsidiary of Aminex), Petrom SA 30%.
