Bounty Oil & Gas NL AGM 28 th November, 2011 Presentation by: - - PowerPoint PPT Presentation

Bounty Oil & Gas NL

AGM 28th November, 2011

Presentation by: Philip F Kelso - CEO

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This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: product price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, oil and gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates. All references to dollars, cents or $ in this document are Australian currency, unless otherwise stated

DISCLAIMER

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Company Snapshot

Snapshot

FY 2010 on FY 2011 Comparison

Head Office Production

Australia Cooper-Eromanga Basins Utopia - 40% Surat Basin Downlands - 24.748%

Oil Appraisal

Australia Surat Basin Bellbird Oil Field - 33.33% Surat Basin Spring Grove - 24.748% Carnarvon Basin Rough Range - 10%

Gas Development

Tanzania Killiwani North Gas - 5%

Onshore Exploration

Surat Basin ATP 754P - 50% Cooper/Eromanga Basin PEL 218 - 23.28% Carnarvon Basin EP 359, 412 and 435 - 10% to 60% Australia

Offshore Exploration

Sydney Basin PEP 11 - 15% Vulcan Sub Basin AC/P 32 - 15% Australia Tanzania Nyuni PSA - 5%

Income

$3.27 million

Current Assets

$6.04 million

Revenue

$1.74 million

Production

20,529 boes

Share Price

$0.02

Market Cap

$14.55 million

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Share and Reserve Summary (to be updated)

Corporate and Reserves

Share Summary

As at 25 November 2011 52 Week Price Range $0.02 to $0.12 Shares Quoted 772,150,982 Options 36,000,000 Fully Diluted 808,150,982 ASX Closing Price $0.02 Market Capitalisation $15.4 million

Petroleum Reserve Summary

Australia - Queensland 2P PL 214 Utopia Oil Field Eromanga Basin 1.2 MMbo Naccowlah Block ATP 259P 0.147 Mmbo PL 119 Downlands Gas Field, Surat Basin 0.024 MMboe Tanzania Gas (Contingent) 2.000 MMboe Total 3.37 Mmboe

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• Participated in 6 wells in 2010/11, of which three were successful oil producers, Nyuni 2 was suspended

and two were dry holes.

Achievements 2010/11

2010/11 Progress

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• Bounty’s production has been steadily increasing since 2009, offsetting the cessation of

production at Downlands in 2011 due to pipeline constraints

• Utopia production not increased as much as planned due to extended downtime on Utopia 2

(broken rods) and apparent obstructions in the horizontal leg of Utopia 11H

Production

Oil driving revenue increases

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Boepd

Bounty Daily Production by Field

Naccowlah bopd Utopia bopd

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• Planned drilling at Utopia and Naccowlah combined with Kiliwani North coming on stream

and some strategic acquisitions are planned to at least double Bounty’s production in 2012.

Production Forecast 2012

New Projects to increase revenue

20 40 60 80 100 120 140 160 180 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Boped

Bounty Production Prediction

New Projects Kiliwani North Naccowlah Utopia

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2012 Activities and Goals

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• Bounty planning to drill at least 5 development and exploration wells into core oil assets, and
• Possibly up to 6 additional wells subject to joint venture approvals
• Aiming for at least 50 bopd additional initial production from development, and
• 150 – 300 boepd from exploration, if successful

Core Oil Business - 2011/12

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• Bounty will be participating in 1-2 High Impact wells in 2012, with possible drilling in Nyuni PSA –

Tanzania and later in AC/P 32

High Impact Growth Activities 2011/12

ATP 789

Nyuni

Tanzania

Production Exploration High Impact Exploration Offshore Well

PEP 11

BUY 15% targeting 4 TCF Gas BUY 5% targeting 1.3 TCF Gas BUY 15% targeting 180 MMbo

AC/P 32 EP 359, 412 & 435 Utopia Surat PEL 218 Naccowlah

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Oil Business strategy on track to provide further growth: – Seismic studies point to likely drill test of 174 - 180 million bbl oil target at Wisteria West in AC/P 32 Timor Sea – 3D seismic surveys indicate possible 6-8 million bbls at Utopia, Queensland – Focus on Downlands and Surat Projects leading with Farawell Updip – Bounty moving on new acquisitions

Project Report Oil Business

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Cooper Basin

N p a p a m e r r i T r

• u

g h

50 100 Kilom etres

PEL 218 - 23.28% Nacowlah Block - 2% Utopia - 40%

SA QLD Bounty Exploration Permit Bounty Production Licence Gas Field Oil Field Gas Pipeline Oil Pipeline

ATP 789P - 100%

• Cooper/Eromanga assets now

producing 60 bopd

• 2012 Development,
• ptimisation and NFE

programme designed to add at least another 25 bopd

• 2P reserves 2.0 MMbo

2012 Drilling programme 4 firm and 2 contingent wells:

• Naccowlah 1 Appraisal, 2 NFE
• Utopia: 2 Development,

possibly 2 additional appraisal wells

Cooper Eromanga Oil Development

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Utopia Development Drilling – BUY 40%

• Bounty participated in two

development wells Utopia 10 and 11H, both had an experimental component to see determine the best way to develop the field.

• Utopia 10 was fracture stimulated,

which did not work as well as had been hoped and the fractures penetrated below the oil water contact - well is producing excess water

• Utopia 11H was a short leg horizontal

and commenced at 150 bopd.

• Production declined and it is thought

that there is some obstruction in the well bore which will need a work

• ver. The initial flow from the well

was as anticipated from a horizontal bore

PL 214 ATP 560P U

3D Seismic Toolerah Creek 1 Seagoon 1 Hakheem 1 Currawinya 1 Muginanullah 1

M

• n

i e

Cranstoun Endeavour Talgeberry Minni Ritchi Tarbat/Ipundu Gimboola Mulberry Kooroopa North Takyah Utopia Kooyong

Ballera

Zenoni 1

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• Preliminary results from the

interpretation of the 3D seismic have indicated vastly increased pool sizes and a concomitant increase in reserves

• The details of the geometry of the

field are still being worked on as the known limits of the oil column exceed closure, and there must be

• ther factors controlling the pools
• Seismic confirms that there is

considerable potential for reserves up dip from Utopia 3 and 4, and previously unrecognised closures

• f a similar size to the Utopia pool

that are undrilled

Utopia 3D Seismic Increases Pool Size

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• Bounty’s Naccowlah acquisition has

performed well since it became effective and is scheduled to improve in 2012

• Naccowlah produces 35 bopd and

has 2P reserves of 150,000 bbls net to Bounty

• New developments and optimisation

planned to add up to 10 bopd to Bounty production during 2012

• Three wells to be drilled into near

field and appraisal targets aiming and two new field production wells to come on stream in 2012

• Bounty anticipates ongoing

development and near field exploration to continue.

Naccowlah Block Oil Development – BUY 2%

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• Bounty building a portfolio of oil

properties in the low cost Surat Basin in Queensland with targets totalling 1 MMbo

• Substantial inventory of tight oil

and condensate discoveries needing exploitation

• Conventional oil plays around

Alton oil fields with potential up to 1 MMbo, drilling to commence in late 2012

• Unconventional CSM and Shale

Gas potential in the Permian sequence

Surat Basin Oil Exploration and Development - Queensland

Waggamba

Surat

Coomrith

ATP 754P ATP 754P

PL 2

Mardi Prospect 300 Mbbls Belllbird Field Tight Oil Reservoir Stimulation 2012 Eluanbrook Updip 300 Mbo potential Up structure from proven H/C Downlands/Spring Grove Tinowan Oil Undeveloped Tight Oil Farawell Prospect 350 Mbbls potential updip from Showgrounds oil Current 3D Seismic and 1 Well 2012

Cockatoo 1 Bellbird

Fairymount

Ungabilla 1

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• Partners have arranged to farm out EP 435 and 359

for shale gas exploration in the Dingo Claystone.

• Bee Eater 1 in EP 359 is still scheduled to be

drilled, possibly as part of the farm in

Rough Range – Onshore Carnarvon Basin, WA

Bee Eater Rivoli Rough Range Oil Field Gas Field Lead

EP 412 EP 435 EP 359

PL L16

10 20 Kilometres EP 359 EP 359

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Cassini Challis Skua Crux Talbot Montara Swan Puffin

Azalea Hibiscus

Oil Field Gas Field Structural Prospect Stratigraphic Prospect

Birch 1 Wisteria 1

25 12.5 Kilometres

AC/P 32 – Vulcan Graben - BUY 15%

• Wisteria 1, drilled in 2008, now appears

to have narrowly missed the up dip pinchout of the Puffin Sands (Azalea Prospect), possibly by as little as 200 metres.

• Work in 2011 has focussed on AVO and

seismic inversion studies aimed at mapping the extent of the Puffin Sands and if possible determining the fluid content.

• Although the work is still in progress

preliminary results indicate that the Sands will be able to be mapped out clearly

• The Azalea Prospect is massive and if

successful could contain 174 MMbo, it lies up dip from confirmed oil sands at the Puffin Field and in Birch 1.

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Tanzania – Nyuni Block

• Development licence for Kiliwani North gas field granted and commercialisation

underway

• Nyuni 2 targeting 800 BCF to 1 TCF gas suspended due to technical problems after

encountering significant gas above target zones Surat Basin

• Development of oil gas/condensate at Downlands now we have 100% ownership
• Farawell Updip has oil but likely gas/condensate reserves - 3D seismic starting

Project Report Gas Condensate Business

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• Kiliwani North Contingent Resources 40 Bcf gas 3.5 km.

from Songo Songo Gas Plant

• New PSA over increased area
• Nyuni 2 drilled June to October 2011 did not reach

target Formation and both main bore and sidetrack suspended while options are reviewed, target untested but will require new seismic

Tanzania – BUY 5%

T

• D

a r e s S a l a a m

Shelf Edge Songo Songo South Songo Songo East Songo Songo Kiliwani North - 45 Bcf Fanjove South

Fanjove North

Nyuni West

Nyuni East

Amina Bewara West Bewara East Deep South

Okuza

Imbi Nyuni 1 and 2

Gas Accumulation Lead New PSA Block Development Block New Addition to PSA Oil Seep Gas Pipeline

Songas Plant Proposed Pipeline

P i p e l i n e t

• D

a r e s S a l a a m

Songo Songo Island and Reef Kiliwani North Kiliwani 1

Kiliwani North Development

• Development Licence awarded
• Contracts being negotiated
• Initial production likely to

be 10 MMcfg/d

• On stream in 2012

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• Recent exploration success by Anadarko (Barquentine,

Windjammer, Lagosta) and the recent 20+ Tcf hit by ENI at Mambo South offshore Mozambique, along with the BG/Ophir hits at Chewa and Pweza offshore Tanzania (>2 Tcf) are proving the deepwater offshore as a major petroleum province

• Gas is contained in submarine channel and fan

deposits related to the Rufiji and Ruvuma deltas

• SE corner of Nyuni PSA contains channels and a

present day canyon, all with very limited seismic coverage, but in a similar geological setting to the

• ther major deepwater discoveries

Deepwater Tanzania – Bounty Well Placed

Chaza Mnazi Bay Pweza Chewa Songo Songo Kiliwani North

Tanzania Mozambique

Zeta 1 (Drilling)

R u v u m a D e l t a Rufiji Delta

Barquentine Lagosta Tubarão Mamba South Windjammer Gas Discovery Nyuni PSA

>30 Tcf Gas

40 80 Kilometres

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• New Seaclem 1 unfortunately did not hit gas as

had been anticipated, but the major structure in the Permian remains untested

• There is a proven gas system and the large

structures such as South Fish offer potential for 4 Tcf of gas, very close to the Greater Sydney Market

• Programme of further seismic evaluation

leading to defining a drilling target.

• Drilling scheduled for 2013

PEP 11 – BUY 15%

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• Bounty has purchased the

remaining interests in the Downlands Gas Field which it now controls 100%, as part of its strategic production development programme in the Surat basin.

• The field is currently shut in

due to the pipeline being used for gas storage rather than production

• Previous exploration

concentrated on drilling highs,

• il and gas is trapped in

channel sands at base of Tinowan Formation in largely stratigraphic traps.

• Bounty intends to develop the
• il leg of the accumulation,

and put the project back into production via a new pipeline connection.

Downlands – BUY 100%

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• Section illustrating the tick channel fill in the productive section
• Bounty intends to follow up this sequence with 3D seismic and further drilling
• Available resources could be as much as 1 MMbo

Downlands

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• In 2010/2011 Bounty invested $4.84 million in exploration and

development directed principally at oil focussed projects in the Cooper and Surat Basins.

• In 2012 we will move to a project phase:

– On Tanzania gas commercialisation – On 100% and high interest properties in the Surat Basin which will see additional oil and gas/condensate revenues

• AC/P 32 Timor Sea is pointing to a very exciting drill in 2013 to test a

180 million bbl oil target

• Strong balance sheet and continuing revenues to improve growth and

start conversion of maturing projects to revenue

Bounty Oil Ready for Growth