OBJECTIVES

Bounty is pursuing a two branched business strategy to provide shareholders with opportunities for major capital gains through high impact oil and gas exploration in Jacobson Project in Offshore WA   & PEP 11 in offshore NSW respectively, backed by a core business of oil production and low risk exploration to underpin the value of the company.

Core Development and Exploration

The objective is to make the company self-sustaining through production revenue.

Bounty has interests in 92 active producing wells in 18 fields in the Eromanga and Surat Basins of Queensland and currently produces 70 boepd. Development drilling is ongoing in Naccowlah Block, SW Queensland.

Ongoing low risk exploration and appraisal in the Surat Basin, Queensland, is addressing near field targets with potential reserves of 400,000 bbls net to Bounty as well as tight oil fields with up to 2 million bbls in place.

Growth through High Impact Exploration

The objective is to provide the potential for major capital growth through exposure to high risk high reward exploration, in general targets which if successful would propel Bounty to the forefront of Junior Exploration companies in Australia.

Bounty has one major Gas project the least of which if successful would add 60 MMboe to Bounty’s contingent resources. PEP 11 offshore Sydney Basin, NSW is the current focus where targets up to 600 Bcf net to Bounty are being targeted. PEP 11 covers 4,576 sq. km immediately adjacent to the largest gas market in Australia and is a high impact exploration project. PEP 11 remains one of the most significant untested gas plays in Australia. The PEP 11 JV has demonstrated considerable gas generation and migration in the offshore Sydney Basin, with the previously observed mapped prospects and leads being highly prospective for gas. In 2010 it drilled New Seaclem 1 and demonstrated capacity to drill in this permit.

Bounty has one major Oil project Jacobson Farm-In which incorporates 3,578 km2 in the four permits – EP 475, 490, 491 and TP 27 offshore Carnarvon Basin and lies 70 km. east of Barrow Island. It is right in the heart of Australia’s most active oil production area and offers several prospects and leads. The project is principally targeting oil in a lower Triassic source rock and reservoir sequence at the base of the Locker Shale, in lookalikes to the highly successful Dorado Project (2C reserves of 344 MMboe) being developed by Santos Limited and Carnarvon Petroleum Ltd in the Browse Basin to the northeast. The attraction of this area is twofold, excellent prospective volumes offering reserves greater than Bounty’s onshore projects, and shallow water jack up drilling with abundant opportunities to achieve economies of scale by participating in drilling groups, resulting in costs only a few times more than onshore but with huge rewards.