“Commitments have been received by [Bounty’s] placement managers from sophisticated and experienced retail investor clients for the placement of 19.41 million shares,” managing director Tom Fontaine said in an ASX release.

“Once issued, the shares will rank pari passu with the existing ordinary shares on issue. The placement was managed by Burdett Buckeridge Young Limited and DJ Carmichael Pty Limited. It is proposed that settlement of this transaction will occur on 24 December 2004.”

Bounty is paying $1,550,000 for Nuenco NL's 40% stake in Utopia, located about 150km north-east of the Jackson oilfield and 50km south of the Kenmore Oilfield.

The consideration is to be paid by the issue of 7 million ordinary fully paid shares in Bounty and $750,000 cash (in two tranches – January and March 2005). The deal is subject to pre-emptive rights held by Utopia Joint Venture partner Oilwells Inc of Kentucky, which has 30 days to exercise.

The field produces from the Early Cretaceous Murta Formation and is the largest known Murta pool in the Eromanga Basin.

The most recent technical review of Utopia (June 2004) has determined the field could contain up to 2.86 million barrels of recoverable oil (P50 estimate), according to Bounty.

Utopia is presently producing approximately 45 bopd from 3 wells and has produced about 50,000 barrels to date, Fontaine said.