bounty places 9 million shares at 15c and acquires

ASX ANNOUNCEMENT
RELEASE DATE: 5 September 2003
TO: Manager, Company Announcements
Australian Stock Exchange Limited
CONTACT: Tom Fontaine (08 9322 3244) PAGES: 2
RE: Bounty Places 9 million shares at 15c and Acquires Equity in
East African Drilling Program
Dear Sir/Madam,
Bounty Oil & Gas NL (Bounty) will issue 9 million shares at 15c and 3.4 million options exercisable
at 20 cents each on or before 1 September 2008 to London based Aminex PLC (Aminex) to raise
A$1,350,000 (less costs of the issue). These funds will allow Bounty to farm into Aminex’s two
petroleum exploration wells off the Tanzanian coast in East Africa, commencing early September
2003.
The estimated drilling cost for both wells is
US$10.8 million. Bounty will earn a 10 per cent
interest in the 2,600 sq km Nyuni Block by
contributing 10 per cent of the well costs,
effectively participating in these wells on a onefor-
one basis. In the event of an oil discovery
Bounty will contribute an increased share of the
drilling costs to a maximum of a five-for-three
basis.
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.
“Mapping indicates that these two features may
contain considerable reserves,” Mr Fontaine
said. “The Nyuni prospect may hold recoverable
reserves of up to 260 million barrels of oil
(mmbo) or if gas is present, 870 billion cubic feet
(bcf). Recoverable reserve estimates at Okuza
range up to 100 mmbo or 390 bcf.
“The closest exploration well to these prospects, Songo Songo-1, was a major gas discovery.
Located only 20 km south west of the Nyuni prospect, the Songo Songo gas field contains proved
and probable reserves of 590 bcf. The field is due to deliver gas to the capital Dar es Salaam in
2004 through a new, internationally financed, 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.
Bounty Oil & Gas NL Page 2
“Whilst we believe the Nyuni and Okuza structures may contain oil, a gas discovery could likely be
commercialised because of this infrastructure.
“The case for the presence of oil is strengthened by the fact that an oil seep was recently
discovered on Nyuni Island, directly above the structure.”
Mr Fontaine said that even though the prospects were 30 km offshore, they both had small
islands above them. “This allows the drilling to be undertaken with a conventional land drilling rig,
a much more economical approach than using an offshore rig.” he said.
“Exploration activity is increasing in East Africa with a number of larger explorers, including Shell,
Maurel & Prom and Petrobras, planning exploration programs in the offshore sector. Bounty’s
partnership with Aminex in Tanzania allows us to effectively get in on the ground-floor in an
under-explored area that we believe has great potential.
“Aminex is an experienced, independent, oil and gas company with a proven track record of
international oilfield exploration, development and production in regions such as Africa, the USA
and the Russian state of Tatarstan.
Aminex’s 10% investment provides it with an exclusive first right to participate in existing Bounty
permits in Australia and New Zealand for a three year period. This will enhance Bounty’s ability to
progress a number of its exploration opportunities. The investment reflects Aminex’s interest in
the long term strategic potential of Bounty’s Australian and New Zealand assets. Aminex will also
be given a seat on the Bounty board to strengthen the symbiotic relationship. Aminex is traded on
the London and Irish stock exchanges; it has a current market capitalisation of approximately
A$63,000,000. (Further information on Aminex PLC at www.aminex-plc.com).
“We look forward to a strong and mutually beneficial alliance with Aminex.”
Drilling at Nyuni is expected to take 70 days.
Partners in Nyuni block are:
Bounty Oil & Gas NL 10% (earning)
Ndovu Resources Ltd* 60% (Operator)
Petrom SA 30%
*Ndovu Resources is a wholly owned subsidiary of Aminex PLC.