29.01.2021 – Quarterly Activities Report & App 5B – December 2020

Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2020

ASX/MEDIA RELEASE

29 January 2021

Quarterly Activities Report - End December 2020

• Highlights
• • Bounty completes 2020 Australian oil drilling campaign with 7 successful oil wells with 5 of the new wells on line this quarter
  • Cash and current assets at 31 December 2020 were $2 million with nil debt
  • Unaudited revenue from oil sales for quarter ended 31 December 2020 was $0.70 million
• Oil Development - Naccowlah Block
• • Operator has identified 12 additional development and NFE (near field exploration) targets with 3D seismic
  • 2021: Planning for 5 new appraisal and NFE oil wells in progress
• Oil/Gas Exploration
• • Gas exploration: PEP 11 joint venture supporting national gas strategy by advancing plans to drill, Offshore Sydney Basin
  • PEP 11 permit extension anticipated
  • Preparations for oil production continuing at Alton Petroleum Lease 2 in Surat Basin

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Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2020

Oil Business - Production:

Bounty produces oil from the Naccowlah Block in SW Queensland.

Production was around 52 bopd. Oil revenue increased during the quarter to $417,000. Oil prices rose during the quarter offset by a rising $A.

Bounty expects to commence oil production from the Alton area, Surat Basin, SE Queensland in 2021.

Bounty's unaudited petroleum revenue production and sales for the quarter ended 31 December 2020 are summarised below.

Revenue:

1. GST exclusive
2. Naccowlah Block

Production:

Sales:

Oil Business - Production and Development:

SW Queensland

ATP 1189P Naccowlah Block and Associated PL's - Bounty 2%

Location: Surrounding Jackson, Naccowlah and Watson Oilfields

Background - Summary

The Naccowlah Block comprises 2,556 km2 approximately 40% of which is covered by ATP 1189 (N) and the remainder in 25 petroleum production leases (PL's) and a PCA around the Wallis 1 discovery.

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Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2020

NACCOWLAH BLOCK, COOPER BASIN, SW QUEENSLAND

Activities during the Quarter

Of the 7 wells drilled in 2020; 5 are now online and producing. Four wells are awaiting further studies prior to connection - Tennaperra 9, Watson North 2 and 3 drilled in 2019 and Cooroo NW 3 drilled and cased in the June 2020 quarter.

Significant Activities Next Quarter / 2021

Five wells, three appraisal and 2 NFE wells, are being planned for 2021. These wells will appraise the same Birkhead zone reservoir as the previous wells but further along trend in the Natan-Bolan-Corella area (see map above). The Watson-Watkins area in the south of the Block is the next area in which further development and appraisal drilling targets will be focussed.

Oil Business - Development:

Southern Surat Basin Onshore Queensland

PL 2 Alton Oilfield Bounty - 100%; ATP 2028P - Bounty 50%.

Location: 70 km northeast of St. George and 440 km west of Brisbane, SE Queensland.

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Bounty Oil and Gas NL Quarterly Activities Report and Appendix 5B - December 2020

Background

The location of Bounty group Southern Surat Basin interests is shown below. Alton has had historical production of over 2 million barrels from the early Jurassic age Evergreen Formation.

Bounty's estimates of its oil reserves and resources in the Southern Surat Basin are:-

Bounty's oil resources in the Southern Surat Basin are light oils (high API) derived from Permian coals (Cooper Basin equivalent).

Activities during the Quarter and Next Quarter

Bounty focused on data digitisation, compliance and development planning for 2021 oil production.

Although oil prices remained subdued during the quarter Bounty is proceeding with expenditure and plans to recommence oil production at Alton.

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