Bounty told the Australian stock exchange it will pay for the increased acreage by issuing 7,000,000 shares at 20 cents raising $1.4 million.

Under the terms of the deal, Bounty will purchase from Flare Petroleum NL - a Daytona subsidiary - its 50% stake in PEP 11, onshore Sydney Basin, which will increase Bounty's interest in the permit to 100%.

Bounty will also acquire from Flare its 65% stake in EP 412, onshore Carnarvon Basin, as well as its 100% stake in AC/P25, offshore Vulcan sub-basin in the North West Shelf. It will also buy Flare's 50% interest in neighbouring AC/P27.

Bounty will pick up Daytona's 18% interest in AC/P32, which lies adjacent to the Skua and Montana oil fields as well as several gas fields.

"These purchases are consistent with Bounty's strategy of acquiring assets where application of technology has the potential to increase their value," said Bounty's managing director, Tom Fontaine. "Bounty has exclusive marketing rights to specialised seismic processing software that it believes can help unlock the potential of these permits, especially AC/P25, 27 and 32."