BUY 0.00% 0.4¢ bounty oil & gas nl

bounty places 9 million shares at 15c and acquires

  1. 3,559 Posts.
    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.
 
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