ANNUAL
REPORT
2021
OUTLOOK & KEY O UTCO MES
Looking to 2022 Bounty Oil and Gas CEO, Philip Kelso commented:
Cerberus, Carnarvon Basin, Western Australia
“The farmin to the Cerberus Project West Australia will see Bounty shareholders
participating in 3 relatively low risk very high impact oil exploration wells in 2022/23 as
oil prices strengthen in the face of disinvestment by majors and in a very low sovereign
risk State.
Bounty will be one of the only juniors in Australia with significant exposure to existing
Australian oil production and hydrocarbon provinces with proximity to markets in the
east (PEP 11, Sydney Basin gas) and the west coast (Cerberus, Carnarvon Basin).
We also welcome Kane Marshall who has joined the Bounty team as COO and will
be working alongside proven industry performers in the Cerberus Coastal team
comprising Ted Jacobson, Joe Graham and Dariusz Jablonski.
Cerberus is an exciting play with some of the largest seismically defined drillable
offshore oil prospects in Australia and proximity to production and transport
infrastructure. Honeybadger and Stork are examples of prospects with the potential
for hundreds of millions of barrels of oil to be found.
Onshore Oil Production, Queensland
With Brent oil prices currently trading above $100/bbl Bounty will participate in further
NFE and appraisal drilling and production from its Cooper Basin and operated Surat
Basin proven oil reserves.”
FU LL Y EAR 20 2 1 - RESULTS
• Group petroleum revenue for the year down 49% to $1.47 million (2020: $2.91 million)
from Queensland oil sales
• Cash and current assets at 30 June 2021 increased to $1.75 million with nil debt
Annual Report - 2021
Website
Bounty maintains a website at:
www.bountyoil.com
On our website you will find full
information about the Company.
Every announcement made to
the Australian Securities
Exchange (ASX) is published on
the website. You will also find
detailed information about the
Company's Exploration and
Production Permits.
Stock Exchange Listing
Bounty Oil & Gas N.L. securities
are listed on the Australian
Securities Exchange.
ASX Code: BUY
Bounty Oil & Gas NL
TABLE OF CONTENTS
2022 Outlook and Key Outcomes
Chairman’s Review
CEO’s Review
Project and Operations Review
Corporate Governance Statement
Page
Inside
Cover
2
3 - 5
6 - 15
15
Directors Report including Remuneration Report
16 - 27
Auditor's Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Contents of Notes to Consolidated Financial Statements
28
29
30
31
32
33
Notes to and Forming Part of the Financial Statements
34 – 55
Directors Declaration
Independent Auditors Report to Members
Additional Information Required by ASX Listing Rules
Schedule of Petroleum Tenements
Abbreviations
Corporate Directory
56
57 - 59
60 - 61
62 - 63
64 - 65
66
Bounty Oil & Gas NL
ACN: 090 625 353
ABN: 82 090 625 353
1
Bounty Oil & Gas NL
Annual Report - 2021
CHAIRMAN’S REVIEW
Dear Shareholder
In 2021 seeking to increase shareholder value Bounty commenced a search for high impact offshore oil and gas
exploration projects.
Bounty’s pursuit of these larger projects was founded on our very clear view that oil and gas are fundamental
commodities to carry modern society particularly such things as food production and mining. Quite apart from
the energy required to carry the world’s population through cold winters, food production and transport must
have liquid fuels such as diesel derived from oil production.
Secondly, Bounty wished to diversify its exploration focus area to the Westralian Super Basin.
As a result on 15 October 2021 your company was able to announce that it had farmed into the Cerberus Oil
Exploration Project located in the core oil production areas of the offshore Carnarvon Basin, Western Australia.
Your company successfully completed a small capital raising of $2.74 million and is commencing steps to
prepare for drilling three (3) oil exploration wells within the Cerberus Project Area. The shallow water projects
will enable us use of jack up rigs and have access to support infrastructure.
We continue to await regulatory approval to move forward with gas exploration in PEP 11 Offshore Sydney
Basin. The joint venture is planning to drill Sea Blue 1 a major gas exploration target in 2022.
Bounty remains confident about its future in a world which continues to demand oil from low sovereign risk
countries and will also move forward with developing its proven oil reserves in the Cooper and Surat Basins.
I thank shareholders in what has been a challenging year disrupted by the Covid-19 pandemic. The strong oil
price recovery however provides us with confidence in the future. I also wish to thank my Board members and
executives for their patience during the year.
I welcome Kane Marshall, a highly qualified petroleum engineer as COO of Bounty.
Graham Reveleigh
Chairman
29 October 2021
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Bounty Oil & Gas NL
Annual Report - 2021
CEO’S REVIEW
Bounty Group Highlights for the Financial Year:
Bounty continued oil production from Naccowlah Block exploiting the additional reserves
proved by development and NFE drills in 2019/2020.
Cash and current assets at 30 June 2021 increased to $1.75 million with nil debt.
Petroleum revenue down 49% to $1.47 million as Covid 19 restrictions heavily impacted
international oil prices.
Operating loss of $0.45 million (2020: $0.43 million) before non-cash expenses including
impairment and amortisation of oil & gas assets of $2.46 million.
Bounty’s proven oil resources in the Cooper and Surat Basins in Queensland provide scope for
very significant growth.
Active search for material offshore oil and gas projects.
Bounty Diversifying into Western Australia Offshore Projects
During the financial year Bounty examined a number of material offshore petroleum exploration opportunities
in Western Australia as a means to diversify from its PEP 11 Sydney Basin Gas Project which continues to await
regulatory approvals.
Cerberus Project Offshore Carnarvon Basin WA – Bounty Earning 25%
As a result on 15 October 2021 Bounty was very pleased to announce that it would acquire a 25% strategic
Interest in 4 Drill Ready Shallow Water Carnarvon Basin Oil Exploration Licences in Western Australia.
Cerberus Main Points
Bounty Group entered a binding farmin agreement with Coastal Oil and Gas Pty Ltd (“Coastal”)
to acquire a 25% interest in Carnarvon Basin oil exploration licenses EP 475, EP 490, EP 491 and
TP 27 (collectively “Cerberus Project”) by funding AUD $6 million towards the costs of drilling
three (3) exploration wells (“Drilling Program”).
Under the farmin Bounty Group will also have options during the next six (6) months to earn two
25% tranches for additional participating interests in the Cerberus Project by funding $9 million
and $12 million respectively towards the Drilling Program.
Bounty Group and Coastal will jointly operate the Drilling Program.
The primary prospects identified for drilling are Triassic stratigraphic plays that are direct
lookalikes to the very significant Santos Limited operated Dorado, Phoenix South and Roc
discoveries.
Drilling projects will focus on the Stork, Honeybadger, Parrot and Gallant prospects with
Unrisked Prospective Resources as follows:
Cautionary Statement: The estimated quantities of petroleum that may potentially be recovered
by the application of a future development project(s) relate to undiscovered accumulations. These
estimates have both an associated risk of discovery and a risk of development. Further exploration
appraisal and evaluation is required to determine the existence of a significant quantity of
potentially moveable hydrocarbons.
3
Prospective ResourcesMean(million barrels)1U Low(million barrels)2U Best(million barrels)3U High(million barrels)Geological TargetHoneybadger Prospect - EP 49129413102814Stork Prospect - EP 4752281494620Parrot - EP 4911051461262Gallant - EP 49044626108TriassicTriassicTriassicCretaceous
Bounty Oil & Gas NL
Annual Report - 2021
An Expression of Interest has been issued to the rig market to assess the timing and cost of the
Drilling Program, estimated to be between US $20 - 30 million for the 3 wells.
Project Funding and COO Appointment
On 21 October 2021 Bounty raised $2.74 million, before issue expenses, from qualified institutional and
sophisticated investors, which was heavily oversubscribed.
With its ongoing oil revenue Bounty’s cash and current assets now exceed $4 million sufficient to allow it to
move forward with the initial phases of the Cerberus Project.
Mr Kane Marshall has joined Bounty as Chief Operating Officer to manage Bounty’s farmin while working
alongside Coastal’s technical team including oil industry veteran Ted Jacobson.
Kane Marshall is a petroleum reservoir engineer/geologist and was until 2019 Managing Director of an ASX
quoted oil producer and a Non-Executive Director of Hawkley Oil and Gas Limited.
More details on current projects are set out below in the Project and Operations Review.
Offshore Projects – Gas Exploration Growth Project
PEP 11 - New South Wales
Bounty holds 15% of PEP 11 Offshore Sydney Basin in what has the potential to lead to a new exploration drill
of a multi TCF major gas exploration project near Newcastle, NSW. Active planning is underway aimed at
advancing the Baleen Prospect to a drill test in 2022 with the Sea Blue 1 Well.
The Joint Venture is confident that it will obtain regulatory approvals to drill the Sea Blue 1 Well in 2022.
Onshore 2022 Forward Oil Development Plans
See the Directors Report for further 2021 production and revenue details.
Bounty’s petroleum revenues were reduced to $1.47 million however Bounty emerged from 2021 in a sound
position with its core petroleum acreage and reserves intact and cash and current assets at 30 June 2021
increased to $1.75 million. Bounty anticipates continuing oil production from the recent Birkhead and
Westbourne zone discoveries in Naccowlah Block supported by a strong oil price recovery.
Onshore Projects
Oil Business
Oil production, development drilling and exploration were all curtailed by the COVID – 19 pandemic extending
through the whole period and with associated interstate travel restrictions active development was restricted.
The pandemic also heavily impacted the oil price.
SW Queensland – Cooper Basin
ATP 1189P Naccowlah Block – see Maps in Project and Operations Review below.
Oil production from the Santos Limited operated ATP 1189 Naccowlah Block was 18,585 bbls (2020: 27,286
bbls). Falling oil prices in $A terms reduced revenues to $1.47 million.
Following its 2019-2020 successful oil appraisal program in the Naccowlah Block. The operator, Santos
Limited, continued to progressively tie in wells with new pipelines and oil production infrastructure. This
continuing exceptionally successful program has maintained Bounty’s oil reserves in Naccowlah Block and
continued oil volumes at lower but satisfactory levels for the year.
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Bounty Oil & Gas NL
Annual Report - 2021
The operator Santos Limited is examining several appraisal and NFE targets for drilling in 2022 in Naccowlah
Block. 2022 focus will be in the Natan Bolan Corella area southwest of Jarrar Field. This additional drilling
should increase our very conservatively stated Naccowlah Block oil reserves and provide steady oil revenues in
coming years.
SE Queensland – Surat Basin
Petroleum Lease 2 Alton (PL2) – see Maps in Project and Operations Review below.
Commencement of oil production in 2021 was deferred due to Covid-19 and depressed oil prices and Bounty is
now planning to commence oil production at PL 2 Alton in 2022. This is expected to generate additional
revenue of up to $1 million per annum with significant upside from four undrilled locations; enhanced
recovery and later an appraisal well at the Eluanbrook prospect in PL 2. During the period Bounty completed a
Well Integrity Management database and other compliance work.
Petroleum Lease 441 Downlands (PL 441) – see Maps in Project and Operations Review below.
Bounty continued facility reviews and compliance activities. The PL 441 production infrastructure and pipeline
is connected to the Silver Springs – Wallumbilla trunk line and Bounty is studying gas production feasibility.
Conclusion
Oil revenue is expected to be $2.0 million in 2022.
Australia confronts the challenge of finding more domestic oil and gas and more producing oil reserves.
Bounty maintained its oil reserves in the year to 31 December 2020 and is well placed for additional oil reserve
growth at end 2022.
It will look for major oil project growth with the Cerberus Project, W.A. and on Bounty operated projects.
PHILIP F. KELSO
Chief Executive Officer
29 October 2021
5
Bounty Oil & Gas NL
Annual Report - 2021
PROJECT and OPERATIONS REVIEW
Bounty Projects
Bounty has production and exploration operations in four states and territories within Australia.
Bounty Project Areas
Summary Land Position
Offshore Australia
PEP-11
Onshore Australia
Naccowlah SW Queensland
Nappamerri South Australia
Surat Basin Queensland
Rough Range Carnarvon Basin WA
Totals
Equity
Gross Km2
Net Km2
15%
4576
686.5
2%
1805
23.28%
Various
10%
859
186
80
36
200
146
8
7505
1077
This table summarises Bounty’s land position as at 30 June 2021. Bounty’s full schedule of tenements as at 28
September 2021 is included in Additional Information Required by ASX Listing Rules at the end of this Annual
Report. During the year Bounty withdrew from ATP 2028P Surat Basin.
Bounty projects not specifically referred to below in this Project Review are summarised in Bounty’s 2021
Quarterly Activity Reports to the ASX and on Bounty’s website: www.bountyoil.com.
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Bounty Oil & Gas NL
Annual Report - 2021
Major Growth Projects
Cerberus Project Offshore Carnarvon Basin WA – Bounty Earning 25%
Background
On 7 October 2021 Bounty entered a farmin agreement to earn a 25% interest in this 600 mmbbl potential oil
project, offshore Carnarvon Basin, West Australia.
The Cerberus Project incorporates 3,759 km2 in 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 a large number of prospects and leads, many drill ready, with prospective resources of over 600
million barrels.
Bounty is farming in to earn 25% by paying A$6 million towards the cost of drilling 3 wells and retains an
option for six months to earn two additional tranches of 25% each by pro rata contributions to the well costs
or finding farmin partners. 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 Canarvon Petroleum Ltd in the Browse Basin to the
northeast.
Bounty reviewed this project in the later part of FY 2020/21 and finalised the agreement in October 2021.
Bounty simultaneously announced on 15 October 2021 the farmin, a $2.74 million capital raising to finance the
farmin, and the appointment of Mr Kane Marshall as Chief Operating Officer to head up the new WA office
and manage the project as it moves to drilling.
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.
7
Bounty Oil & Gas NL
Targets
Bounty is targeting three plays:
Annual Report - 2021
Dorado discovery lookalikes in the same Lower Triassic sequence as the hugely successful Dorado
(344 MMboe 2C), Phoenix South and ROC (78 MMboe 2C) discoveries in the Browse Basin to the
northeast
Sand bodies entirely sealed within clay filled subsea channels in the Triassic age Locker Shale similar
to those providing the top seal to the Dorado discovery
Stag (85 MMbo) and Wandoo (100 MMbo) look alikes in identical pinchouts in the same Lower
Cretaceous sand package
Active gas seepage from around the edges of the Triassic prospects is a prominent feature, providing
additional evidence of mobile hydrocarbons and minimising the risk of charge.
The main focus is on four targets with the best chance of success with Prospective Resources as follows:
Prospective Resource MMbo
Honeybadger Prospect - EP 491
Mean
294
1U Low
13
2U Best
102
3U High
814
Reservoir Age
Triassic
Stork Prospect - EP 475
Parrot - EP 491
Gallant - EP 490
228
105
44
14
14
6
94
61
26
620
262
108
Triassic
Triassic
Cretaceous
Three of those targets are described below (see Carnarvon Project Location Map above).
Stork Prospect
Higher seismic amplitudes (warm colours) define the deltaic sands in the Lower part of the Locker Shale which
form the reservoir at Dorado; the clay seals (cold colours) by the Kes Canyon and the erosion of the sand package
by the Honeybadger canyon clearly define the prospect.
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Bounty Oil & Gas NL
Annual Report - 2021
The seismic section shows the details of the updip seal against the clay-filled channels within the
Triassic Locker Formation, identical to Dorado, and the extent of the Honeybadger Canyon in cross-
section. The higher amplitude reflectors within the canyon are most likely due to turbidite sands
formed in sub-sea channels cutting into the shale. World-wide these are very attractive targets
because the sand bodies are usually completely contained within shale providing an all-round seal. In
this case they directly over lie the source interval, which is mature downdip, feeding directly into the
reservoirs.
Honeybadger
clearly
reveals
the
Amplitude extraction
turbidite sands
in the Honeybadger Canyon
(orange and red), showing good all-round lateral
and top seal by clay (blue) and seal to the
northeast against clay and a fault. Migration
from a mature source is postulated up the fault
immediately to the west of the sands, where the
Basal Locker shales are mature.
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Bounty Oil & Gas NL
Annual Report - 2021
Gallant
The Stag field to the north of the Cerberus Project permits is trapped in a pinchout of the M. Australis
Sand, the upper sand in a package of Lower Cretaceous sands including the Mardie Greensand and The
Birdrong Sandstone, both of which host commercial oilfields. At Gallant these sands abut and pinchout
against impermeable Carboniferous Limestone. This structure persists along the edge of the basement
with two other similar stratigraphic targets. They are all very shallow, and studies indicate that due to
the nature of the oil at Stag the oil should flow to surface even from shallow depths.
Future Potential
In addition to the four main prospects (above) there are at least 16 leads and prospects in the Cerberus project
which are being evaluated. To assist in de-risking the drilling program reprocessing of the older seismic data is
being considered. Planning for the 3 well program is already underway with the selection of specialist
contractors to plan and manage the program. The wells are planned for 2022/23.
Major Gas Growth Projects:
PEP 11 - Offshore Sydney Basin, New South Wales – Bounty 15%
Background and Petroleum Setting
PEP 11 covers 4,576 sq. km immediately adjacent to the largest gas market in Australia and is a high impact
exploration project (see Location below). 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.
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Bounty Oil & Gas NL
Annual Report - 2021
A 200km 2D seismic survey was completed in March 2018 in the area of the Baleen prospect and with AVO
analysis further refined the Baleen target located 30 km southeast of Newcastle.
Joint Venture focus now is a drill test of Baleen where AVO (Amplitude versus Offset) analysis has defined an
anomaly in the prospective Early to Mid-Permian sequence. The marine sands of the sequence are the targets
especially further seawards where the sands can be expected to have good reservoir characteristics.
Activities during the Year – Baleen Drill Test – Sea Blue 1
Preliminary
As outlined in detail in the previous 2021 Reports the operator, Advent Energy Ltd (Advent), submitted to
NOPTA an application to enable the drilling of the Baleen Prospect in PEP 11 and to change the current Permit
conditions to this effect. The permit is in good standing and continues during this review period. The Permit is
also suspended under the Federal Government’s COVID-19 - Work Bid Exploration Permits arrangements.
Preparations are under way to drill an exploration well for gas – Sea Blue 1.
The joint venture also proposes to use the drilling program at Baleen to investigate CCS - Carbon Capture and
Storage (geo-sequestration of CO2 emissions) - opportunities in PEP 11. Up to 34% of the total national
emissions are from this part of east Australia and independent Government research has indicated at least 2
TCF (Trillion Cubic Ft) of CO2 storage may be feasible in the offshore Sydney Basin.
Advent has been actively preparing for the drilling program by securing the services of well management and
environmental services to design the well program and carry out environmental impact assessments of the
proposed operations. A Proposal to assess the possibilities of geo sequestration of CO2 in the Sydney Basin are
also being considered.
Sea Blue 1 Well Preparations
On 8 March 2021 the operator appointed a Drilling Manager under a Preliminary Well Services Agreement
with Add Energy relating to the preparation for drilling of the Sea Blue 1 well to undertake a phased approach
to provide technical support in the following areas: -
Review of current well design documentation
Develop a suitable well design and cost estimates
Develop drilling schedule and define a ready to drill tentative window
11
Bounty Oil & Gas NL
Annual Report - 2021
The scope of work included review of existing data and latest geological prognoses for the well,
documentation of the subsurface well design envelope and compilation of a preliminary well design, project
costs and schedule to complete the Sea Blue 1 well. Add Energy delivered its report during the period ended
30 June 2021 including Basis of Well Design (BOWD) and rationale for design of the well, the well cost
compilation and the project schedule.
Advent subsequently appointed Xodus under a lump sum contract to prepare the Environmental Plan for first
submission to NOPSEMA. Xodus’s appointment was based on their high quality of engagement, willingness to
provide a staged lump sum proposal, and recent experience with NOPSEMA requirements.
The operator followed this report with:
1.
Issue of a call for tender for the provision of subsea wellhead equipment, materials and associated
services for the Baleen drilling program.
2. A call for tender for the provision of drilling rig services to multiple drilling contractors who have
semi-submersible drilling units in the Australasian region.
2022 Operations
Planning and financing the proposed Sea Blue 1 well will be ongoing, however the permit operations are
suspended under the governments COVID-19 provisions.
SW Queensland – Cooper Basin
Production
Bounty’s petroleum production and sales for the year ended 30 June 2021 are summarised in the Review of
Operations set out in the Directors Report.
Development
ATP 1189P Naccowlah Block and Associated PL’s SW
Queensland - Bounty 2%
Location: Surrounding Jackson, Naccowlah and Watson
Oilfields
Background
The Naccowlah Block covers 1794 km2, 9% of which is
covered by ATP 1189P and the remainder in 25 petroleum
leases (PL’s) and applications covering producing fields.
There is significant production infrastructure and pipelines.
Bounty’s share of production from the Naccowlah Block
was 27,300 bbls of oil equivalent for the year. Bounty
holds 2P + 2C (Contingent) reserves of 114,000 bbls. The
decrease in production due to natural decline, was partially
offset by a continuing successful drilling program in 2020
which converted resources contingent on drilling to
producing oil reserves.
2020/2021 Naccowlah Block Program
Most of the wells drilled in previous periods were placed on production. Several wells are awaiting tie in to
facilities or further testing.
12
Bounty Oil & Gas NL
Annual Report - 2021
2021-22 Naccowlah Block Development
Planning for a 2022 drilling program has commenced. Another 12 potential drilling targets have been
identified with 3D seismic targeting the Birkhead Formation reservoir in or near the Wallis, Bolan, Natan and
Echuburra fields.
SE Queensland
Surat Basin Oil Development
Background
Bounty has two production areas in the Surat Basin and Tinowan Trough, Queensland. The areas are
Petroleum Lease 2 Alton in the south and Petroleum Lease 441 Downlands in the north. Hydrocarbons are
generated in the Permian sequence and are liquids rich. In PL2 oil is trapped in the Triassic age Showgrounds
Sandstone and in the overlying Evergreen Formation. Here Bounty is targeting around 350,000 bbls of oil in
proven reservoirs.
At Downlands gas is trapped in the Permian age Tinowan Formation which frequently has a liquids rich gas
charge and in Bounty's Downlands property, good porosity and permeability. Preparations are underway to
re-open the gas plant in PL 441 and pipeline and bring the field back into gas production, provided the
economics support it. There is a ready market for the gas due to a shortage of domestic gas in the Eastern
states. In addition there are targets in excess of 750,000 bbls in tighter oil sands which will be investigated.
Bounty Permit Interests in the Surat Basin, Queensland
South
Permit
Status
Interest
Permit
North
Status
PL 2 C
PL 2 Alton
Alton Oilfield
Granted
Granted
100.0%
100.0%
Kooroon JV Block
PL 2 A
PL 2 B
Granted
Granted
81.75%
81.75%
ATP 1190 SG
PL 441
PPL 58
Downlands Area
Granted
Granted
Granted
Interest
24.75%
100.0%
100.0%
PL 2 Alton - Bounty 100% and PL 2 B and 2 C
Kooroon Block – Bounty 81.75%
Location: 70 km. East of St George SE
Queensland .
PL 2 (Alton Field) has to date produced over 2
million barrels of oil from the Jurassic Age
Evergreen Formation. Bounty has established
through decline analysis that 1P reserves of
48,000 bbls can be recovered from the existing
wells. Furthermore, re-evaluation of the
seismic has indicated a substantial attic which
could contain 168,000 bbls, and smaller,
possibly unswept parts of the oil pool
amounting to another 70,000 bbl potential.
2021 Operations
completed data digitisation and
Bounty
completed a Well
Integrity Management
System in preparation for re-commencement of
oil production.
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Bounty Oil & Gas NL
Annual Report - 2021
2021/22 Plans
Bounty plans re-commence oil production while it generates a full field development plan including drilling a
new development well targeting the main attic oil at Alton.
Surat Basin - Exploration and Appraisal
There are a number of leads and prospects within the remaining parts of PL 2 (Blocks A, B and C) of which an
up-dip appraisal well at Eluanbrook in the northwest section of PL 2 B is the most promising. Eluanbrook 1 was
drilled in 1986 and discovered light oil and gas in the transition zone near the water contact. Bounty proposes
drilling an up dip well accessing 150,000 bbl of oil.
There are unresolved leads within PL 2 which require better seismic detail before drilling. A new 3D seismic
survey over the whole area of PL 2 would resolve and de-risk further drilling opportunities.
Surat Basin Gas Development
Downlands PL 441 – Bounty 100%, Spring Grove Joint Venture PCA 159 (ATP 1190) –
Bounty 24.75%
Location: Surat, Queensland
Bounty has the reserves and now infrastructure to re-commence gas production at Downlands PL 441. When
shut in due to lack of pipeline access the field was producing around 2 million cubic feet of gas and 15 bbl of
liquids per month.
2021/22 Operations
Work is underway on taking the gas wells and plant out of care and maintenance and bringing the field back to
production. During 2022 it is intended to produce the field and evaluate the potential gas and oil reserves. The
Downlands gas field occurs in sands overlying a basement high. Ringing the high where the sands abutt the
basement are a series of oil pools and potential pools in the Tinowan Formation which were intersected in
Downlands-3 and 4 both of which produced oil to surface. Bounty intends to evaluate these oil pools further
once the gas-condensate field is back in production.
In a similar situation to the oil leg at Downlands, Tinowan Formation sands abutting a basement high contain
oil in tight formation southeast of PL 441 at PCA 159 Spring Grove Joint Venture where Bounty has a 24.75%
interest.
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Bounty Oil & Gas NL
Annual Report - 2021
Carnarvon Basin, Western Australia - Production Licence PL L16 – Bounty 100%
Location: Surrounding Rough Range Oil Field, 60 Km south of Exmouth, Carnarvon Basin WA
Background
This production licence straddles the Rough Range anticline,
and was the location of the first oil discovery in Australia.
The Dingo Claystone, the prime source rock for the
Carnarvon Basin, is mature and generating oil in the
Patterson Trough running north south along the western
edge of the Licence. Oil has migrated a short distance into
the younger Rough Range Anticline. Bounty's Licence
contain two known proved oil pools - Rough Range and
Parrot Hill. Pervasive faulting and poor seismic imaging
along the crest of structures makes identifying drill targets
challenging.
Bounty conducted well integrity monitoring on the Rough
Range 1B well in Petroleum Licence L 16 and other
remediation at the Rough Range Oilfield.
Future Work
The principal undrilled prospect is the 3 million bbl potential Bee Eater prospect in the southern section of L
16.
Bounty continues to review the seismic and geological database seeking methods to image oil pools directly
given the relatively shallow 1100 metre depth to target. After developing a method to de-risk the data Bounty
intends conducting a drill test of the Bee Eater prospect.
CORPORATE GOVERNANCE STATEMENT
Bounty Oil and Gas NL’s Corporate Governance Statement is on its website www.bountyoil.com and has been
released to the ASX.
15
Bounty Oil & Gas NL
Annual Report - 2021
DIRECTORS’ REPORT
Your directors present their report on the consolidated entity Bounty Oil & Gas NL (“Bounty”, “company” or
“the group”) being the company and its controlled entities for the financial year ended 30 June 2021.
Directors
The names of the directors in office at any time during or since the end of the financial year are:-
G. C. Reveleigh
C. Ross
R. Payne
(Chairman)
(Non-executive Director)
(Non-executive Director)
Company Secretary
The following persons held the position of company secretary and chief financial officer of the group during
the financial year:
S. Saraf
Principal Activities
The principal activity of the company and the group during the financial year was that of exploration for,
development, production and marketing of oil and gas (petroleum). Investment in listed entities is treated as a
secondary activity and business segment.
There were no significant changes in the nature of the company’s principal activities during the financial year.
Operating Results
Consolidated loss of the group attributable to equity holders after providing for income tax amounted to $2.9
million (see comparative details below).
Profit/(loss) from ordinary activities before
income tax
Income tax attributable to loss
Net profit/(loss) after income tax
Consolidated
2021
$ million
(2.9)
-
(2.9)
Consolidated
2020
$ million
(3.1)
-
(3.1)
Revenue from continuing operations for the period was $1.47 million down 49% on the previous year (2020:
$2.9 million) primarily due to a sharp decline in crude oil prices as a result of the Covid-19 induced economic
slowdown.
The operating loss was determined after taking into account the following material items:
Petroleum revenue; (primarily from crude oil sales) of $1.47 million
Direct petroleum operating expenses of $0.94 million
Employee benefits expense of $0.68 million
Non-cash expenses for:
o
o
Impairment charge to oil and gas assets of
Amortisation and depreciation expenses of
$2.0 million
$0.45 million
16
Bounty Oil & Gas NL
Annual Report - 2021
Details of drilling activity, exploration and development operations and cash flows for the year ended 30 June
2021 have been reported by the company to the Australian Securities Exchange in the Quarterly Activity
Report and Appendix 5B for each of the quarters during the year and in additional announcements on
particular items.
A summary of revenues and results of significant business and geographical segments is set out in Note 4 to
the Financial Statements. Brief details are set out below:
Review of Operations
Production & Sales:
During the year ended 30 June 2021, the company produced oil as a joint venture participant from several oil
fields and leases operated by Santos Limited in ATP 1189P, Naccowlah Block, SW Queensland.
Petroleum revenue and production in barrels of oil equivalent (boe) are summarised below: -
Naccowlah Block
Bounty Share
(2% interest)
Totals
Revenue $
Production boe
2021
2020
$1.47 million
18,585
$2.91 million
27,286
Exploration and Development
Significant exploration and development operations during the year under review were:
Australia
Onshore
Cooper Basin, South-western Queensland
ATP 1189P Naccowlah Block; SW Queensland and Petroleum Leases:
Bounty’s Naccowlah Block reserves and resources at 31 December 2020 were:
2P developed reserves (producing and contingent): 3.513 mmbbls or Bounty at 2%: 70,200 bbls.
Additional volumes are waiting for tie in.
Naccowlah Block held Bounty’s oil revenue to $1.47 million for the full-year.
Bounty’s 3P developed reserves at Naccowlah were 113,000 bbls.
Bounty has continued to invest in Naccowlah Block in the year ended 30 June 2021 with no new drills but an
emphasis on production optimisation, infrastructure and compliance. Development drilling was delayed in
2021 due to Covid 19 related delays and lower crude prices however Bounty expects to drill one well later this
year. Although oil volumes have been lower we await tie in of new reserves and oil price increases to
USD$70/bbl (A$ 102) have provided confidence for new drills.
Several new oil wells drilled and cased in prior periods were either tied-in or remained cased pending
completions.
Additional Later Development and Environmental Authority Plans for the Naccowlah Block were lodged with
the Queensland regulators and a number of lease applications and renewals are pending.
17
Bounty Oil & Gas NL
Annual Report - 2021
Surat Basin; Eastern Queensland
Petroleum Lease 2 Alton
During the period Bounty completed a comprehensive Well Integrity Management System and
undertook compliance monitoring. This required “historic” research and scan of voluminous paper
records to build the system for the Alton wells. In terms of oil reserves and resources PL 2 Alton is
considered to be valued far in excess of the net value.
Further planning was continued to develop the PL 2 Alton oil reserves in 2020/2021 initially by
producing oil from Alton Oilfield.
At Alton Oilfield Bounty group holds; development reserves of 167,000 bbls of recoverable oil in the
early Triassic age Basal Evergreen sand reservoir plus a potential 1.136 million bbls of 2P reserves
located in the three sands of the Boxvale/Evergreen Formations.
There is an estimated recoverable resource of 186,000 bbls from P50 OOIP of 625,000 bbls in the
Middle Triassic age Showgrounds Sandstone reservoir at the Eluanbrook Prospect within that part of
PL2 known as the Kooroon JV.
Low oil prices curtailed commencement of production in 2021 however in 2021/2022 Bounty will
continue development of these resources as much stronger oil prices are evident.
Petroleum Lease 441 Downlands
PL 441 (formerly PL 119) covering shut in gas reserves and oil prospects was renewed on 5 June 2019.
Bounty completed certain compliance audits and facilities studies on its gas processing plant and
developed an optimal plan for re-commencing gas production.
ATP 2028P (formerly ATP 754P):
ATP 2028P covered the southern section of former ATP 754P.
Applications to convert ATP 2028 to four potential commercial area titles were declined and the group
fully impaired ATP 2028 incurring a permanent impairment expense of $2.0 million.
Carnarvon Basin, Western Australia
Petroleum Licence L 16 Rough Range
During the period the group continued well integrity monitoring on the Rough Range 1B well in
Petroleum Licence L 16 onshore Carnarvon Basin and other remediation at the Rough Range Oilfield.
Bounty continued a full seismic and geological review at L16 aimed at further refinement of the
structure and reservoir to prepare for:-
o
o
Further seismic surveys and/or
An exploration well.
Offshore
PEP 11; New South Wales: Bounty 15% interest:
The operator Asset Energy Pty Limited and Bounty have co-operated to advance to a drill test of the previously
well-defined Baleen Prospect. The well will be named Seablue 1. With major gas supply issues developing in
eastern Australia; the operator has identified a new target at Baleen Prospect using AVO analysis of seismic
data.
At the end of the period a decision on permit extension and variation by NOPTA was pending.
18
Bounty Oil & Gas NL
Annual Report - 2021
Other Properties
During the period, Bounty continued to fund exploration and development expenditure in connection with its
other operated and joint venture interests located in Queensland, South Australia and Western Australia.
Bounty is actively seeking additional material projects.
Corporate – Share Issues
During the year ended 30 June 2021 on 23 September 2020 the company issued 143 million fully paid ordinary
shares at $0.01 per share to raise $1.43 million before issue expenses. No other share issues were completed
during the period.
Dividends Paid or Recommended
No dividends have been paid or declared for payment for the year ended 30 June 2021
and no dividend is recommended.
Financial Position
At 30 June 2021 current assets were $1.75 million including cash of $1.4 million.
During the financial year the company invested: -
$ 0.34 million on petroleum development drilling, property acquisitions and in completions
and surface production facility upgrades mainly in ATP 1189P Naccowlah Block; Queensland
to further exploit its existing proved producing oil reserves and to increase its 2P oil reserves.
$ 0.10 million in petroleum exploration projects and acquisitions in Australia as summarised
in the Review of Operations above.
The net assets of the group reduced by $1.49 million in the year ended to 30 June 2021 as a result
of non-cash impairments on petroleum properties. The significant underlying movements resulted
from the following items:
o
Impairment of oil and gas assets of
o Amortisation of production assets
o Exploration write offs
$2.010 million.
$0.356 million.
$ nil
The directors believe the company is in a stable financial position to expand and grow its current operations.
Significant Changes in State of Affairs
There have been no significant changes in the state of affairs of the company during the financial year.
Contingent liabilities and Contingent Assets
As at the date of this report, there were no contingent assets or liabilities except that a local government
authority claimed $458,511 rates and levies for prior and current periods from one controlled entity of
the group. That amount has been recognised in current liabilities.
There was no litigation against or involving the parent entity Bounty Oil & Gas N.L.
Events after the Reporting Period
19
Bounty Oil & Gas NL
No other matters or circumstances have arisen since the end of the financial year which have significantly
affected or may significantly affect the operations of the company, the results of those operations, or
the state of affairs of the company in future financial years.
Annual Report - 2021
Future Developments, Prospects and Business Strategies
Subject to the amount of its ongoing oil revenues and the availability of new capital; consistent with that
income and the available cash reserves of the group, Bounty will continue:
Production, development and exploration for oil and natural gas (petroleum).
Expand in the business of the exploration for, development of and production of petroleum.
To conduct such operations principally in Australia.
In the coming year the group will focus on the:-
Development of its existing oil and gas reserves in the Cooper Basin and in the Surat Basin,
Queensland aimed at increasing group oil and gas revenue;
Financing and preparation to fund its 15% participating interest share and to drill its major
offshore gas target in PEP 11, Sydney Basin;
Acquisition of additional petroleum properties with existing petroleum production or reserves and
resources considered to have potential to develop and/or produce petroleum within an acceptable
time frame;
Development of new business opportunities focused on material Australian drill opportunities
and projects.
Environmental regulations or Issues
The company’s operations are subject to significant environmental regulation under the laws of the
Commonwealth of Australia and its States and Territories in respect of its operated and non-operated
interests in petroleum exploration, development and production. Its oil and gas production interests in the
State of Queensland are operated by Bounty group companies, AGL Energy Limited, Armour Energy (Surat
Basin) Pty Ltd and Santos Limited who comply with all relevant environmental legislation. Its non-operated
offshore exploration operations in PEP 11, NSW are conducted by Asset Energy Pty Ltd a competent operator.
Asset conducts operations in full compliance with all relevant environmental legislation of the Commonwealth
of Australia. Bounty otherwise complies with all relevant environmental legislation.
Information on Directors
The names and particulars of the directors of the company during or since the end of the financial year ended 30
June 2021, are:-
Graham Reveleigh
— Non-Executive Director
Qualifications
— BSc. MSc, M. Aus IMM.
Experience
— Mr Reveleigh is a professional geologist and has over 50 years’ experience in the
resources industry both in Australia and overseas. Early in his career, he worked in
the oil industry, then spent most of his career in exploration, mine management
and construction in the mineral industry. Mr Reveleigh has had extensive
experience in petroleum in recent years as a director of Drillsearch Energy Limited
and its Canadian subsidiary. He is a Fellow of the Australasian Institute of Mining
and Metallurgy. He was appointed a director and chairman in 2005.
Special responsibilities:
Chairman of the company; geotechnical advice.
20
Bounty Oil & Gas NL
Annual Report - 2021
Charles Ross
Qualifications
— Non-Executive Director
— BSc.
Experience
— Mr Ross has had extensive experience in the private and public equity and
corporate finance market in Canada, USA and Europe of over 25years. He has
operated extensively in corporate asset acquisition and divestiture, review and
development of corporate financing strategies, administration, compliance
procedures and investor relations in North America and the Euro zone. He was a
director of a subsidiary of ASX Listed Drillsearch Energy Limited from 1992 until
2008 involved in most aspects of petroleum exploration, development and
production operations in the Western Canada Basin and Australian areas. He was
appointed a director in 2005.
Special responsibilities:
Audit reviews; corporate strategy.
Roy Payne
Qualifications
— Non-Executive Director
—
Solicitor Queensland.
Experience
— Mr Payne is a commercial lawyer with over 35 years’ experience. Prior to working
in private practice as a lawyer he worked for the Department of Justice,
Queensland for 15 years.
Mr Payne has many years of experience in the corporate world. He has been the
chairman of a listed mining exploration company. He was until recently chairman of
the board of two limited liability, not for profit companies that operate a public art
gallery and a gallery foundation. He has a wealth of knowledge and experience with
corporate governance and mining exploration.
Special responsibilities:
Commercial law and Queensland statutory compliance.
Directorships of other listed companies
Directorships of other listed companies currently held by the directors or held in the 3 years immediately before
the end of the financial year are as follows:
Name
Company
Period of directorship
Mr G. Reveleigh
Peak Minerals Limited (formerly Pure Alumina Ltd)
1 July 2017 to 23 October 2018
Mr C. Ross
TSX Listed Companies; Canada:
Goldex Resources Corporation, Norzan Enterprises Ltd., Halio
Energy Inc; Tearlach Resources Limited; Schwabo Capital
Corporation; Four Nines Gold Inc. and Norsement Mining Inc.
1 July 2017 to present
Mr R. Payne
Nil
Directors shareholdings
NA
The following table sets out each Directors interest in shares and options over shares of the Company or a related
body corporate as at the date of this report:-
Mr G. Reveleigh
Mr C. Ross
Mr R. Payne
Bounty Oil & Gas NL
Fully paid ordinary shares
Number
Share options
Number
21,377,928
3,200,000
-
21
-
-
-
Bounty Oil & Gas NL
Annual Report - 2021
Meetings of Directors/Committees
During the financial year, seven (7) meetings of directors were held. Attendances by each director during the year
were as follows:-
Directors’ Meetings
Number eligible to attend
Number attended
Mr G. Reveleigh
Mr C. Ross
Mr R. Payne
10
10
10
10
10
10
The company does not have separate audit or remuneration committees.
Indemnifying Officers or Auditor
During the financial year ended 30 June 2021 the company has not entered indemnity and access deeds with any of
the directors indemnifying them against liabilities incurred as directors, including costs and expenses in successfully
defending legal proceedings. The company has not, during or since the financial year, in respect of any person who
is or has been an auditor of the company or a related body corporate indemnified or made any agreement for
indemnifying against a liability incurred as an auditor, including costs and expenses in successfully defending legal
proceedings.
Share Options
No options were issued during the year ending 30 June 2021 or have since been issued up to the date of this report.
Accordingly at balance date on 30 June 2021 and at the date of this report, no unissued ordinary shares or securities
of Bounty Oil & Gas NL or any other entity comprising the consolidated entity were under option. No ordinary shares
of the company were issued pursuant to exercise of options during the year ending 30 June 2021.
Legal Matters or Proceedings on Behalf of Company
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any
proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all
or any part of those proceedings.
The company was not a party to any such proceedings during the reporting period.
Non-Audit Services
The independent auditor to the company; Mr William Moyes has not provided non-audit services to the company
during or after the end of the financial year.
Remuneration of Directors and Management
Information on the remuneration of directors and other key management personnel is contained in the
Remuneration Report which forms part of this Directors Report (see in the following pages).
Extension of Auditors Tenure
The Directors advise that under the provisions of Sec 324DAA of the Corporations Act 2001, approval was given for
William Murray Moyes, auditor of the company and partner of Moyes Yong & Co, Chartered Accountants, to be
granted an extension on the term of his appointment for a further two years. The directors are satisfied that the
approved extension is consistent with maintaining the quality of the audit provided to the company and will not give
rise to any conflict of interest situation as defined in Sec 324CD of the Corporations Act 2001. The Directors have
been satisfied with the quality of the audit services provided to date and have no reason to believe that the quality
of service to be provided in the next two years will be impaired as a result of approving this extension. The Directors
also believe that the introduction of a new service provider at this time would cause unnecessary disruption and
would not provide any additional benefit to the company.
22
Bounty Oil & Gas NL
Annual Report - 2021
Auditor’s Independence Declaration
The auditor’s independence declaration for the year ended 30 June 2021 has been received and can be found on
Page 28.
Signed in accordance with a resolution of the Board of Directors made pursuant to s. 298(2) of the Corporations Act
2001.
On behalf of the Directors.
GRAHAM REVELEIGH
Chairman
Dated: 30 September 2021
23
Bounty Oil & Gas NL
Annual Report - 2021
REMUNERATION REPORT
This remuneration report forms part of the Directors Report for the year ended 30 June 2021 and details the
nature and amount of remuneration for the Bounty Oil & Gas NL non-executive directors and other key
management personnel of the group.
The prescribed details for each person covered by this report are detailed below under the following headings:
Director and senior management details
Remuneration policy
Non-executive directors policy
Senior management personnel policy
Remuneration of directors and key management
Key terms and employment contracts
Directors and Key Management details
The term “key management” as used in this remuneration report to refers to the following directors and
executives.
Directors
The following persons acted as directors of the company during or since the end of the financial year: -
Mr G. C. Reveleigh
Mr C. Ross
Mr R. Payne
(Chairman)
(Non-Executive Director)
(Non-Executive Director)
Executives
The following persons acted as senior management of the company during or since the end of the financial
year:
Mr P. F. Kelso
(Chief Executive Officer)
The company does not consider other employees and consultants to be Key Management Personnel.
Remuneration policy
The remuneration policy of Bounty Oil & Gas NL has been designed to align key management personnel
objectives with shareholder and business objectives by providing a fixed remuneration component and
bonuses issued at the discretion of the board of the company. The board of Bounty Oil & Gas NL believes the
remuneration policy to be appropriate and effective in its ability to attract and retain the best key
management personnel to run and manage the company, as well as create goal congruence between
directors, executives and shareholders.
All remuneration paid to key management personnel (directors and others) is valued at the cost to the
company and expensed or where appropriate transferred to capital items. Shares issued to key management
personnel are valued as the difference between the market price of those shares and the amount paid by the
key management person. Share options are valued using the Black- Scholes methodology. Shares and options
granted to key management personnel (directors and others) are subject to any necessary approvals required
by the ASX Listing Rules.
Performance-based remuneration
Given the long-term nature of and risk variables involved in exploration and development of petroleum
resource projects as compared to other sectors e.g. retail revenues; remuneration of directors or other key
management personnel is not performance based.
24
Bounty Oil & Gas NL
Non-executive directors’ policy
Annual Report - 2021
The board policy is to remunerate non-executive directors at market rates for time, commitment and
responsibilities. The maximum aggregate amount of fees that can be paid to non-executive directors is within
the maximum amount specified in the company's Constitution. Any increase of that amount is subject to
approval by shareholders at the Annual General Meeting. Fees for non-executive directors are not linked to
the performance of the company.
Remuneration of non-executive directors is determined by the Board exclusive of the director under
consideration after considering the individual time commitment, duties and function of the subject Director.
Further considerations of the amount of remuneration are made by referral to amounts paid to Directors,
both executive and non-executive, by other listed entities of comparable size to the Company in the oil and
gas exploration industry.
The board of directors as a whole determines the proportion of any fixed and variable compensation for each
other key management person.
Any consulting fees payable to Directors as to specific projects outside the normal day to day duties of the
Directors are agreed upon prior to commencement of work on the specific projects.
The company makes cash bonus payments to key directors from time to time. Bonus payments by way of
share-based payments are made from time to time subject to any necessary shareholder approval. All such
payments are expensed at the time of issue at the prevailing market price.
Each director is paid in cash. Shares and share options have on occasions been granted to directors as part of
their remuneration.
Senior management personnel policy
The board's policy for determining the nature and amount of remuneration of key management personnel
who are senior management executives of the company is as follows:-
The remuneration structure comprises a combination of, short term benefits including base fees and long-term
incentives and is based on a number of factors, including length of service, particular experience of the
individual concerned, and overall performance of the company. The contracts for service between the
company and key executive management personnel are for fixed terms which may continue at the end of the
term. There were no provisions for retirement benefits in contracts with senior management executives of the
company made or continued during the year ended 30 June 2021.
The company may make cash bonus payments to senior management executives and to selected employees
from time to time. Bonus payments and long-term incentives by way of share-based payments are classed as
long-term incentives and are made from time to time subject to any necessary shareholder approval. All such
payments are expensed at the time of issue at the prevailing market price.
Key management personnel who are employees receive a superannuation guarantee contribution required by
the government and do not receive any other retirement benefits. Some individuals, however, have chosen to
sacrifice part of their salary to increase payments towards superannuation.
The chief executive officer, Mr P. F. Kelso, is engaged through a fixed term service agreement with a personally
related entity containing the following material conditions:
Management fees of $320,000 per annum payable by equal monthly instalments.
Payment of lease fees for a motor vehicle and parking.
Bonuses at the discretion of the board of directors and there are no retirement or other fixed
benefits.
The personally related entity is responsible for all statutory entitlements.
Services: To include non-exclusive executive management, capital raising, communication,
management strategy, budgets, investment policy and all other duties normally incidental to the
position of chief executive officer.
25
Bounty Oil & Gas NL
Annual Report - 2021
Other than the directors and the chief executive officer, at the date of this Report all other personnel are
permanent or part time employees of the company and not classified as key management personnel.
Key Management Remuneration
Details of the remuneration of directors and the other key management personnel of the group (as defined in
AASB 124 Related Party Disclosures) and the one highest paid executive of Bounty Oil & Gas N.L. are set out in
the following tables.
Key Management Remuneration
2021
Key Management Person
Short-term Benefits
$
Cash, salary and
commissions
Consulting
Fees + Other
Cash bonus
and Non-
cash
benefits (2)
Post-
employment
Benefits
Super-
annuation
Share based
payment
Total
Options
Non-Executive Directors
Mr G. Reveleigh (1)
Mr C. Ross (1)
Mr R. Payne
Other Key Management
Personnel – Chief Executive
officer
Mr P.F. Kelso (1)
55,000
10,804
14,666
320,000
-
-
-
-
-
-
-
-
-
3,000
8,400
-
-
-
-
-
55,000
10,804
17,666
328,400
1.
Paid to a personally related entity of the director/executive.
Key Management Remuneration
2020
Key Management Person
Short-term Benefits
$
Cash, salary and
commissions
Consulting
Fees + Other
Cash bonus
and Non-
cash
benefits (2)
Post-
employment
Benefits
Super-
annuation
Share based
payment
Total
Options
Non-Executive Directors
Mr G. Reveleigh (1)
Mr C. Ross (1)
Mr R. Payne
Other Key Management
Personnel – Chief Executive
officer
Mr P.F. Kelso (1)
52,500
10,754
7,333
398,000
-
-
-
-
-
-
-
-
-
16,825
4,200
-
-
-
-
-
52,500
10,754
24,158
402,200
1.
Paid to a personally related entity of the director/executive.
No director or senior management person appointed during the above periods received a payment as part of
his consideration for agreeing to be appointed to that position.
Share–based payments
During the financial year ended 30 June 2021 no share-based payments were made to Key Management
Persons.
26
Bounty Oil & Gas NL
Fully paid ordinary shares
Annual Report - 2021
No fully paid ordinary shares were issued to Key Management Persons during the period.
Share Options
1.
2.
No share options were issued to directors or other key management persons or executives as
part of their remuneration during the year ended 30 June 2021 or since that date.
During the year, no directors or senior management held or exercised options that were granted
to them as part of their compensation in previous periods.
Loan transaction with directors and executives
No loans were made to key management personnel including their personally related entities during the financial year
ended 30 June 2021 and no loans were outstanding at the end of the prior period. During the year the Company repaid
$106,000 (net), being part of short-term interest free loan advanced by related entities of the CEO in previous years. At 30
June 2021 loans outstanding to related entities of the CEO were approximately $162,000 inclusive of accrued interest
charge at 10% p.a. on a $62,000 portion of the advance, for the financial year.
Other Key Management Personnel Disclosures:
Further information on disclosure in connection with Key Management Personnel and Share Base Payments are set out in
the following Notes to the Financial Statements:-
1.
2.
3.
Note 19: Share Based Payments
Note 20: Key Management Personnel Disclosures
Note 22: Related Party Transactions.
Performance income as a proportion of total remuneration
The percentage of remuneration paid to directors and key management personnel during the financial year
ended 30 June 2021 which was performance based was: Nil.
Employee Share Scheme
Bounty Oil & Gas N.L. does not have a current Employee Share Plan (the Plan) approved by shareholders.
27
Bounty Oil & Gas NL
Annual Report - 2021
Consolidated statement of profit and loss and other comprehensive income
for the year ended 30 June 2021
Petroleum revenue
Net Investment income
Other income
Direct petroleum operating expense
Changes in inventory
Employee benefits and contractor expense
Depreciation expense
Amortisation of oil producing assets
Occupancy expense
Corporate activity costs
Rehabilitation finance costs
Foreign exchange gain/(loss)
Impairment of oil and gas assets
General legal and professional costs
Other expenses
Loss before Tax
Income tax expense
Loss for the period from continuing operations
Loss for the year
Other comprehensive income for the year, net of income tax
Total Comprehensive loss for the period
Year-ended
Notes
30-Jun-21
$
30-Jun-20
$
5
5
5
5
6
5
14
7
1,470,219
12,786
106,697
(937,896)
(11,543)
(676,176)
(92,872)
(356,343)
(91,318)
(128,803)
(27,516)
(52,478)
(2,010,904)
(81,430)
(29,998)
2,906,461
(32,009)
50,848
(1,507,931)
(7,682)
(747,588)
(81,380)
(542,127)
(99,064)
(44,202)
(27,645)
26,073
(2,904,523)
(55,200)
(36,623)
(2,907,575)
(3,102,592)
-
-
(2,907,575)
(3,102,592)
(2,907,575)
(3,102,592)
-
-
(2,907,575)
(3,102,592)
Total comprehensive income/(loss) attributable to owners of the parent
(2,907,575)
(3,102,592)
Earnings/(loss) per share
Basic (cents per share)
Diluted (cents per share)
(0.28)
(0.28)
(0.33)
(0.33)
The above consolidated statement of comprehensive income should to be read in conjunction with the accompanying
notes.
29
Bounty Oil & Gas NL
Annual Report - 2021
Consolidated statement of financial position
as at 30 June 2021
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current financial assets
Total current assets
Non-current assets
Other receivables
Exploration and evaluation assets
Production and development assets
Property, plant and equipment
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Total current liabilities
Non-current liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained losses
Equity attributable to owners of the parent
Total equity
Notes
30-Jun-21
$
30-Jun-20
$
9
10
11
12
10
14 (b)
14(a)
13
15
16
16
17
1,410,397
258,792
36,188
45,139
1,750,516
25,850
3,062,158
5,604,161
892,097
1,096,605
273,125
69,508
32,353
1,471,591
40,850
4,999,553
5,243,330
878,923
9,584,266
11,162,656
11,334,782
12,634,247
1,421,438
88,043
1,509,481
1,275,814
61,335
1,337,149
1,369,963
1,369,963
1,354,185
1,354,185
2,879,444
2,691,334
8,455,338
9,942,913
44,860,163
201,600
(36,606,425)
8,455,338
43,440,163
201,600
(33,698,850)
9,942,913
8,455,338
9,942,913
The above consolidated statement of financial position should to be read in conjunction with the accompanying notes.
30
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3
Bounty Oil & Gas NL
Annual Report - 2021
Consolidated statement of cash flows
for the year ended 30 June 2021
Cash flows from operating activities
Receipts from petroleum operations
Payments to suppliers and employees
Interest and dividend received
Year-ended
Notes
30-Jun-21
$
30-Jun-20
$
1,643,043
(2,160,124)
1,837
3,475,484
(2,483,305)
25,812
Net cash generated by/(used in) operating activities
18
(515,244)
1,017,991
Cash flows from investing activities
Payments for exploration and evaluation assets
Payments for oil production & development assets
Payments for property plant and equipment
Other deposits
Payment for available for sale financial assets
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from issue of shares
Costs associated with issue of shares
Net cash generated by/(used in) financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effects of exchange rate changes on the balance
of cash held in foreign currencies
Cash and cash equivalents at the end of the period
(103,139)
(335,915)
(49,327)
(150,000)
-
(60,808)
(839,325)
(14,877)
170,000
(20,782)
(638,381)
(765,792)
1,430,000
(10,000)
1,420,000
-
-
-
266,375
252,199
1,096,605
813,870
9
47,417
1,410,397
30,536
1,096,605
The above consolidated statement of cash flow should be read in conjunction with the accompanying notes.
32
Bounty Oil & Gas NL
Annual Report - 2021
Contents of the notes to the consolidated financial statements
1. Statement of compliance
2. Summary of significant accounting policies
3. Critical accounting estimates and judgments
4. Segment Information
5. Revenue and other income
6. Employee benefit expense
7. Income tax expense
8. Earnings/(loss) per share
9. Cash and cash equivalents
10. Trade and other receivables
11. Inventories
12. Other current financial assets
13. Property, plant and equipment
14. Non current assets
15. Trade and other payables
16. Provisions
17. Issued capital
18. Reconciliation of cash flow from continuing operations
19. Share based payments
20. Key management personnel
21. Commitments
22. Related party transactions
23. Financial instruments
24 . Controlled entities
25. Interest in joint operations
26. Parent entity information
27. Contingent liabilities and contingent assets
28. Events occurring after the reporting period
29. Auditors remuneration
30. Company details
33
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
1. Statement of compliance
Bounty Oil and Gas N.L. Is a company incorporated in Australia and limited by shares which are publicly traded on the Australian
Securities Exchange.
This financial report includes the consolidated financial statements and notes of Bounty Oil & Gas NL (“parent entity”) and
controlled entities (“consolidated group” or “group”) and the Group’s interest in jointly controlled assets for the financial year
ended 30 June 2021. Supplementary financial information about the parent entity is disclosed in Note 26. The Financial
Statements are presented in Australian currency.
The group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
The financial report was authorised for issue by the directors on 30 September 2021.
The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting
Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards
Board (AASB), and the Corporations Act 2001 .
Compliance with AASB 101 ensures compliance with International Financial Reporting Standard IAS 1 Presentation of Financial
Statements.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report
containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting
Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been
consistently applied unless otherwise stated.
2. Summary of significant accounting policies
a. Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain non-
current assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All
amounts are presented in Australian dollars, unless otherwise noted.
The financial report is presented in Australian dollars and under the option available to the Group under ASIC Corporations
(Rounding in Financial/Directors’ Reports) Instrument 2016/191, all values are rounded to the nearest dollar unless otherwise
stated.
b. Adoption of new and amended Accounting Standards
The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting
period. The consolidated entity has adopted all the new, revised or amended Accounting Standards and Interpretations
issued by the AASB that are mandatory for the current reporting period beginning 1 July 2021.
The Directors have reviewed new accounting standards and interpretations that have been published that are not mandatory for
30 June 2021 reporting periods. As a result of this review, the Directors have determined that there is no material impact of the
new and revised Standards and Interpretations on the Company and, therefore, no material change is likely to company accounting
policies.
Conceptual Framework for Financial Reporting (Conceptual Framework)
The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains
new definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards, but it
has not had a material impact on the consolidated entity's financial statements.
c. Basis of consolidation
(i) Controlled entities
The consolidated financial statements incorporate the assets, liabilities and results of entities controlled by Bounty Oil & Gas NL at
the end of the reporting period. A controlled entity is any entity over which Bounty Oil & Gas NL has the power to govern the
financial and operating policies so as to obtain benefits from the entity’s activities. Control will generally exist when the parent
owns, directly or indirectly through subsidiaries, more than half of the voting power of an entity. In assessing the power to govern,
the existence and effect of holdings of actual and potential voting rights are also considered.
Where controlled entities have entered or left the Group during the year, the financial performance of those entities are included
only for the period of the year that they were controlled. A list of controlled entities is contained in Note 24 to the financial
statements.
34
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
c. Basis of consolidation (continued)
In preparing the consolidated financial statements all inter-group balances and transactions between entities in the
consolidated group have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with those adopted by the parent entity.
For the reporting period the only controlled entities that Bounty Oil & Gas NL had were Ausam Resources Pty Limited (100%),
Interstate Energy Pty Limited (100%), and Rough Range Pty Limited (100%).
(ii) Joint arrangements
Under AASB 11 'Joint Arrangements' investments in joint arrangements are classified as either joint operations or joint
ventures depending on the contractual rights and obligations each investor has, rather than the legal structure of the joint
arrangement. Bounty Oil & Gas NL has assessed the nature of its joint arrangements and determined them to be joint
operations.
Bounty Oil & Gas NL has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations. These
have been incorporated in the financial statements under the appropriate headings. Details of the joint operations are set out
in note 25.
(iii) Business combinations
The Group applies the acquisition method in accounting for business combinations. The consideration transferred by the
Group to obtain control of a subsidiary is calculated as the sum of the acquisition-date fair values of assets transferred,
liabilities incurred and the equity interests issued by the Group, which includes the fair value of any asset or liability arising
from a contingent consideration arrangement. Acquisition costs are expensed as incurred.
The Group recognises identifiable assets acquired and liabilities assumed in a business combination regardless of whether they
have been previously recognised in the acquiree’s financial statements prior to the acquisition. Assets acquired and liabilities
assumed are generally measured at their acquisition-date fair values.
Goodwill is stated after separate recognition of identifiable intangible assets. It is calculated as the excess of the sum of: (a) fair
value of consideration transferred, (b) the recognised amount of any non-controlling interest in the acquire, and (c) acquisition-
date fair value of any existing equity interest in the acquiree, over the acquisition-date fair values of identifiable net assets. If
the fair values of identifiable net assets exceed the sum calculated above, the excess amount (i.e., gain on a bargain purchase)
is recognised in profit or loss immediately.
d. Interests in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of
control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control.
When a group entity undertakes its activities under joint operations, the Group as a joint operator recognises in relation to its
interest in a joint operation:
• its assets, including its share of any assets held jointly;
• its liabilities, including its share of any liabilities incurred jointly;
• its share of the revenue from the sale of the output by the joint operation; and
• its expenses, including its share of any expenses incurred jointly.
The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance
with the AASBs applicable to the particular assets, liabilities, revenues and expenses. When a group entity transacts with a
joint operation in which a group entity is a joint operator (such as a sale or contribution of assets), the Group is considered to
be conducting the transaction with the other parties to the joint operation, and gains and losses resulting from the
transactions are recognised in the Group's consolidated financial statements only to the extent of other parties' interests in
the joint operation.
e. Income tax
The income tax expense / (income) for the year comprises current income tax expense / (income) and deferred tax expense
(income).
Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable
income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured
at the amounts expected to be paid to (recovered from) the relevant taxation authority.
35
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
e. Income tax
Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as
well unused tax losses.
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been
fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition
of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Current and deferred income tax expense / (income) is charged or credited directly to equity instead of the profit or loss when
the tax relates to items that are credited or charged directly to equity.
Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement
also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of deferred tax asset can be utilised.
Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net
settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and
liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income
taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended
that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods
in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
Tax Consolidation - Bounty Oil & Gas NL and its wholly owned Australian subsidiary have not formed an income tax
consolidation group under tax consolidation legislation. Each entity in the Group recognises its own current and deferred tax
assets and liabilities. Such taxes are measured using the ‘stand alone taxpayer’ approach to allocation.
f. Fair value measurement
AASB 13 establishes a single source of guidance for determining the fair value of assets and liabilites. AASB 13 does not
change when an entity is required to use fair value, but rather, provides guidance on how to determine fair value when fair
value is required or permitted. Application of this definition may result in different fair values being determined for the
relevant assets. AASB 13 also expands the disclosure requirements for all assets and liabilites carried at fair value. This
includes information about the assumptions made and the qualitative impact of those assumptions on the fair value
determined. Consequential amendmends were also made to other standards.
AASB 13 requires the disclosure of fair value information by level of the fair value hierarchy, which categorises fair value
measurements into one of three possible levels based on the lowest level that a significant input to the measurement can be
categorised into as follows:
- level 1: Measurement based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity
can access at the measurement date.
-level 2: Measurements based on inputs other than quoted prices included in level 1 that are observable for the asset or
liability, either directly or indirectly.
-level 3: Measurements based on unobservable inputs for the asset or liability.
The carrying values of financial assets and liabilites recorded in the financial statements approximates their respective fair
values, determined in accordance with the acounting policies described above and adjusted for capitalised transaction costs, if
any.
36
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
g. Going concern basis
The directors have prepared the financial report on a going concern basis, which contemplates the continuity of normal
business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
For the period ended 30 June 2021, the Group realised a net loss after tax of $2,907,575 (2020: $3,102,592). This was primarily
due to non-cash impairment of $2 million to oil and gas assets. The net cash spent on operating activities for the period ended
30 June 2021 was $515,244 (2020: net cash generated $1,017,991). The Group’s net asset position at 30 June 2021 was
$8,455,338 (30 June 2020: $9,942,913) and a cash balance of $1,410,397 (30 June 2020: $1,096,605).
The directors’ cash flow forecasts project that the group will continue to be able to meet its liabilities and obligations
(including those exploration commitments as disclosed in Note 21) as and when they fall due for a period of at least 12
months from the date of signing of this financial report. The cash flow forecasts are dependent upon the generation of
sufficient cash flows from operating activities to meet working capital requirements; contemplating issue of equity by the
Group; the ability of the Group to manage discretionary exploration and evaluation expenditure on non-core assets via
farmout or disposal of certain interests and or a reduction in its future work programmes. The directors are of the opinion
that the use of the going concern basis of accounting is appropriate as they are satisfied as to the ability of the Group to
h. Trade and other receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for
doubtful debts. Trade receivables are due for settlement no more than 30 days.
Collection of trade receivables is reviewed on an ongoing basis. Debts, which are known to be uncollectible, are written off. A
provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all
amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s
carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Cash
flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount for the
provision is recognised in the income statement.
i. Property, plant and equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the
Plant and equipment are measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the asset’s employment and subsequent disposal.
The cost of fixed assets constructed within the consolidated group includes the cost of materials, direct labour, borrowing
costs and an appropriate proportion of fixed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is
probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be
measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in
which they are incurred.
j. Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding freehold land, is
depreciated on a straight-line basis over the asset’s useful life to the Group from the time the asset is held ready for use.
Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful
37
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
j. Depreciation (continued)
Depreciation on assets is calculated over their estimated useful life as follows:
Class of fixed asset
Office furniture and fittings
Computer equipment
Plant and equipment
Estimated useful life
5 years
4 years
5 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are
included in the income statement. When re-valued assets are sold, amounts included in the revaluation reserve relating to
that asset are transferred to retained earnings.
k. Exploration and evaluation expenditure
Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and
evaluation asset in the year in which they are incurred where the following conditions are satisfied:
• the rights to tenure of the area of interest are current; and,
• at least one of the following conditions is also met:
i) the exploration and evaluation expenditures are expected to be recouped through successful exploration, development and
commercial exploitation of the area of interest, or alternatively, by its sale; or,
ii) exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits a
reasonable assessment of the existence or otherwise of economically recoverable petroleum reserves or resources and active
and significant operations in, or in relation to, the area of interest are continuing.
Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, geophysical
surveys, studies, exploratory drilling, sampling and associated activities and an allocation of depreciation and amortisation of
assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement
of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.
Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying
amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the
exploration and evaluation asset (or the cash-generating unit(s) to which it has been allocated, being no larger than the
relevant area of interest) is estimated to determine the extent of the impairment loss (if any). Where an impairment loss
subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but
only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined
had no impairment loss been recognised for the asset in previous years. Where a decision is made to proceed with
development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment
and the balance is then re-classified to development.
l. Production and development assets
The group follows the full cost method of accounting for production and development assets whereby all costs, less any
incentives related to the acquisition, exploration and development of oil and gas reserves are capitalised. These costs include
land acquisition costs, geological and geophysical expenses, the costs of drilling both productive and non productive wells,
non producing lease rentals and directly related general and administrative expenses. Proceeds received from the disposal of
properties are normally credited against accumulated costs.
When a significant portion of the properties is sold, a gain or loss is recorded and reflected in profit or loss.
With respect to production assets, depletion of production and development assets and amortisation of production facilities
and equipment are calculated using the unit of production method based on estimated proven oil and gas reserves. For the
purposes of depletion calculation proved oil and gas reserves before royalties are converted to a common unit measure.
The estimated costs for developing proved underdeveloped reserves, future decommissioning and abandonments, net of
estimated salvage values, are provided for on the unit of production method included in the provision for depletion and
amortisation.
38
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
l. Production and development assets (continued)
In applying the full cost method of accounting, the capitalised costs less accumulated depletion are restricted from exceeding
an amount equal to the estimated discounted future net revenues, based on year end prices and costs, less the aggregate
estimate future operating and capital costs derived from proven and probable reserves.
Development expenditure is recognised at cost less accumulated amortisation and any impairment losses. Where commercial
production in an area of interest has commenced, the associated costs together with any forecast future capital expenditure
necessary to develop proved and probable reserves are amortised over the estimated economic life of the field on a units-of-
production basis.
Changes in factors such as estimates of proved and probable reserves that affect unit of production calculations are dealt with
on a prospective basis.
m. Trade and other payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year, which
are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
n. Inventories
Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the
ordinary course of business less any estimated selling costs. The cost of petroleum products includes direct materials, direct
labour and an appropriate portion of variable and fixed overheads.
o. Leases
When a contract is entered into, the Group assesses whether the contract contains a lease. A contract is, or contains, a lease if
the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Group separates the lease and non-lease components of the contract and accounts for these separately.
The Group allocates the consideration in the contract to each component on the basis of their relative stand-alone prices.
Leases as a lessee
Right-of-use assets and lease liabilities are recognised at commencement date of the lease when the asset is available for use.
Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial
direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.
Right-of-use assets are depreciated using the straight-line method over the shorter of their useful life and the lease term.
Periodic adjustments are made for any re-measurements of the lease liabilities and for impairment losses, assessed in
accordance with the Group’s impairment policies.
Lease liabilities are initially measured at the present value of future lease payments, discounted using the Group’s incremental
borrowing rate if the rate implicit in the lease cannot be readily determined After the commencement date, the amount of
lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. Lease payments are
fixed payments or index-based variable payments incorporating Group’s expectations of extension options and do not include
non-lease components of a contract. A portfolio approach was taken when determining the implicit discount rate for the
office premise and office car bay lease.
The lease liability is remeasured when there are changes in future lease payments arising from a change in rates, index or
lease terms from exercising an extension or termination option. A corresponding adjustment is made to the carrying amount
of the right-of-use assets, with any excess recognised in the consolidated income statement.
Short-term leases and lease of low value assets
Short term leases (lease term of 12 month or less) and leases of low value assets are recognised as incurred as an expense in
the consolidated income statement.
39
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
p. Financial instruments
i) Financial assets at fair value through profit or loss
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition
depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them.
With the exception of trade receivables that do not contain a significant financing component or for which the Group has
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial
asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing
component or for which the Group has applied the practical expedient are measured at the transaction price determined
under AASB 15. In order for a financial asset to be classified and measured at amortised cost, it needs to give rise to cash flows
that are solely payments of principal and interest on the principal amount outstanding. This assessment is referred to as the
SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it
manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the market place are recognised on the trade
date(the date that the Group commits to purchase or sell the asset).
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in following categories:
(i) Financial assets at amortised cost (debt instruments)
(ii) Financial assets at fair value through profit or loss
(iii) derecognition (equity instruments)
(i) Financial assets at amortised cost (debt instruments):
The Group measures financial assets at amortised cost if both of the following conditions are met:
- The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual
cash flows and
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding
Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to
impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.
The Group’s financial assets at amortised cost includes other receivables.
(ii) Financial assets at fair value through profit or loss:
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon
initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near
term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated
as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are
classified and measured at fair value through profit or loss, irrespective of the business model.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net
changes in fair value recognised in the statement of profit or loss.
(iii) Derecognition:
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e., removed from the Group’s consolidated statement of financial position) when:
-The rights to receive cash flows from the asset have expired or
- The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has
transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a passthrough
arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership.
When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of
the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the
Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that
reflects the rights and obligations that the Group has retained.
40
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
p. Financial instruments (continued)
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.
Impairment of financial assets
Expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss will be recognised through an
allowance. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all
the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The
expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to
the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since
initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-
months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the
timing of the default (a lifetime ECL). For trade receivables and contract assets, the Group applies a simplified approach in
calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognises a loss allowance based on
lifetime ECLs at each reporting date.
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases,
the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is
unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by
the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.
ii) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
The Group’s financial liabilities include trade and other payables.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement
of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial
position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.
q. Impairment of assets
Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
r. Foreign currency
Functional and presentation currency
The functional currency is measured using the currency of the primary economic environment in which the Group operates
(the “functional” currency). The financial statements are presented in Australian dollars which is the Group’s functional and
presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary assets and liabilities are translated at the exchange rate at balance date. Non-
monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction.
Exchange differences arising on the translation of monetary items are recognised in the income statement, except where
deferred in equity as a qualifying cash flow or net investment hedge.
41
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
s. Employee benefits
Wages, salaries, and other entiltlements
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to balance date.
Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid
when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the
estimated future cash outflows to be made for those benefits. Those cash flows are discounted using market yields on
national government bonds with terms to maturity that match the expected timing of cash flows. Employee benefits payable
later than one year include Statutory Long Service Leave only.
Share based payments – employee share plan
Share based compensation has from time to time been provided to eligible persons via the Bounty Oil & Gas N.L. Employee
Share Plan (“Plan”). Under AASB 2 “Share-based Payments”, the Employee Share Plan shares are deemed to be equity-settled
share-based remuneration.
Equity-settled share-based payments with employees and others providing similar services are measured at the fair value of
the equity instrument at the grant date. Fair value is measured by use of the quoted market price or binomial pricing model.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis
over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding
increase in equity.
t. Provisions
Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is
probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are
determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current market assessments
of the time value of money and, where appropriate, the risks specific to the liability.
u. Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments
with original maturities of three months or less, and bank overdrafts.
v. Rehabilitation obligations
Provisions for future environmental restoration are recognised where there is a present obligation as a result of exploration,
development, production or storage activities having been undertaken and it is probable that an outflow of economic benefits
will be required to settle the obligation. The estimated future obligations include the costs of removing facilities, abandoning
wells and restoring the affected areas.
The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the
restoration obligation at the reporting date. Future restoration costs are reviewed annually and any changes in the estimate
are reflected in the present value of the restoration provision at reporting date, with a corresponding charge in the cost of the
associated asset.
The amount of the provision for future restoration costs relating to exploration, development and production facilities is
capitalised and depleted as a component of the cost of those activities.
The unwinding of the effect of discounting on the provision is recognised as a finance cost.
w. Revenue and other income
Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts
and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of
interest that is generally accepted in the market for similar arrangements. The difference between the amount initially
recognised and the amount ultimately received is interest revenue.
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and
rewards of ownership of the goods and the cessation of all involvement in those goods.
Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets, is the rate
inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.
All revenue is stated net of the amount of goods and services tax (GST).
x. Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of
the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing
activities, which are disclosed as operating cash flows.
42
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
y. Earnings per share
The Group presents basic and diluted earnings per share (“EPS”) for its ordinary shares. Basic EPS is calculated by dividing the
profit attributable to equity holders of the Company by the weighted number of shares outstanding during the period. Diluted
EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of
ordinary shares outstanding for the effects of all potential ordinary shares, which comprises any share options issued.
z. Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for
the current financial year.
aa. Contributed equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are
shown in equity as a deduction from the proceeds.
3. Critical accounting estimates and judgments
In the application of the group’s accounting policies, which are described in Note 1, the directors are required to make
judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical and industry experience and other factors
that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods.
The following are the critical judgments that management has made in the process of applying the group’s accounting policies
and that have the most significant effect on the amounts recognised in the financial statements:
Business combination
Management uses valuation techniques in determining the fair values of the various elements of a business combination. See
Note 2(c)(iii).
Exploration and evaluation assets
The group’s policy is discussed in Note 2(k). The application of these policies requires management to make certain estimates
and assumptions as to future events and circumstances. Any such estimates and assumptions may change as new information
becomes available. If after having capitalised exploration and evaluation expenditure, management concludes that the
capitalised expenditure is unlikely to be recovered by future sale or exploitation, then the relevant capitalised amount will be
written off through profit or loss.
Covid-19
Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on
the consolidated entity based on known information. This consideration extends to the nature of the products and services
offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as
addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements
Estimate of reserve quantities
The estimated quantities of proven and probably hydrocarbon reserves and resources reported by the group are integral to
the calculation of amortisation (depletion) and depreciation expense and to assessments of possible impairment of assets.
Estimated reserve quantities are based upon data from exploration and development drilling, interpretations of geological
and geophysical models and assessment of the technical feasibility and commercial viability of producing the reserves.
Management prepares reserve estimates which conform to guidelines prepared by the Society of Petroleum Engineers, USA.
Where appropriate these estimates are then verified by independent technical experts.
These assessments require assumptions to be made regarding future development and production costs, commodity prices,
exchange rates and fiscal regimes. The estimates of reserves may change from period to period as the economic assumptions
used to estimate the reserves can change from period to period, and as additional geological or reservoir data is generated
during the course of operations.
Provision for rehabilitation and decommissioning
The group estimates the future removal and decommissioning costs of oil and gas production facilities, wells, pipelines and
related assets at the time of installation of the assets. In most instances the removal of these assets will occur many years in
the future. The estimates of future removal costs therefore requires management to make adjustments regarding the
removal date, future environmental legislation, the extent of decommissioning activities and future removal technologies.
43
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
Impairment of production and development assets
The group assesses whether oil and gas assets are tested for impairment on a semi-annual basis. This requires an estimation
of the recoverable amount from the cash generating unit to which each asset belongs. The recoverable amount is assessed on
the basis of the expected net cash flows that will be received from the asset’s employment and or subsequent disposal. The
expected net cash flows are discounted to their present values in determining the recoverable amount. Its policy for
production and development assets is discussed in Note 1(l).
During the year, the group carried out a review of its petroleum exploration properties. The review led to the recognition of
an impairment loss of $2 million on ATP 2028P Queensland Onshore. Further commentary on impairment is included in the
Directors' Report. This non-cash loss has been recognised in the Group's profit or loss statement. These properties are
reported as in the core oil and gas segment (See note 4).
4. Segment Information
Information reported to the Chief Operating Decision Maker, being the CEO, for the purposes of resource allocation and
assessment of the performance is more specifically focused on the category of business units. The Group’s reportable
segments under AASB 8 Operating Segments are therefore as follows:
Core Petroleum Segment - Oil and gas exploration, development and production
Secondary Segment - Investment in listed shares and securities.
Segment revenue and results
Core Oil & Gas Segment
Production projects
Exploration projects
Secondary Segment
Listed securities
Total from continuing operations
Other revenue
Central admin costs and directors remuneration
Loss before tax
Segment revenue
Segment profit/(loss)
30-Jun-21
$
30-Jun-20
$
1,470,219
2,906,461
-
-
30-Jun-21
$
101,777
(2,010,904)
30-Jun-20
$
801,713
(2,904,523)
12,786
1,483,005
(32,009)
2,874,452
12,786
(1,896,341)
54,219
(1,065,453)
(2,907,575)
(32,009)
(2,134,819)
76,921
(1,044,694)
(3,102,592)
Segment revenue
Revenue reported above represents revenue/income generated from external sources. There were no intersegment sales
during the period (2019: nil).
Accounting policies of reportable segments
The accounting policies of the reportable segments are the same as the group’s accounting policies described in Note 1.
Segment profit/(loss) in this Note represents the profit/(loss) earned by each segment without allocation of central
administration costs and directors remuneration, other investment revenue such as interest earned, finance costs and
income tax expense. This is the measure reported to the Chief Operating Decision Maker for the purpose of resource
allocation and assessment of segment performance.
Information about major customers
Included in the revenue arising from direct sales of oil and gas of $1.47 million (2020: $2.90 million) are revenues of
approximately $0.98 million (2020: $1.93 million) which arose from sales to the Group’s largest customer. The revenue from
the Group’s second largest customer was approximately $0.49 million (2020: $0.97 million). No other single customer
contributed 10% or more to the Groups revenue for both 2021 and 2020.
Other segment information
Core Oil & Gas Segment
Production projects
Development projects
Exploration projects
Other
Total
Amortisation, depreciation
& depletion
Additions to non-current
assets
30-Jun-21
$
441,102
-
-
30-Jun-20
$
619,520
-
-
30-Jun-21
$
660,146
112,131
73,509
30-Jun-20
$
731,285
112,733
32,795
8,113
449,215
3,987
623,507
49,327
895,113
1,203
878,016
44
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
4. Segment Information (continued)
Core Oil & Gas Segment
Exploration projects
Total
Impairment losses
(expenses)
30-Jun-21
$
2,010,904
2,010,904
30-Jun-20
$
2,904,523
2,904,523
Segment assets are measured in the same way as in the financial statements. These assets are allocated based on the
operations of the segment and the physical location of the asset.
Segment liabilities are allocated to segments where there is a direct nexus between the incurrence of the liability and the
operations of the segment. Segment liabilites incude trade and other payables and provisions.
The unallocated items include items that are not considered part of the core operations of any segment.
Core Oil & Gas Segment
Production projects
Development projects
Exploration projects
Secondary Segment
Listed securities
Unallocated
Total
Segment assets
Segment liabilities
30-Jun-21
$
4,954,629
1,769,690
3,062,158
30-Jun-20
$
4,649,336
1,657,559
4,999,553
30-Jun-21
$
2,075,596
71,171
88,531
30-Jun-20
$
2,055,104
68,163
76,855
45,139
1,503,166
11,334,782
32,353
1,295,446
12,634,247
-
644,146
2,879,444
-
491,212
2,691,334
Geographical Segment information
The following table details the group’s geographical segment reporting of revenue and carrying amount of assets in each
geographical region where operations are conducted.
Australia
Total
5. Revenue and other income
Sales revenue:
Oil and gas sales
Revenue from tariffs
Total sales revenue
Investment income:
Investment income from financial assets at fair value through
Profit and loss (held for trading listed shares)
Unrealised gain/(loss)
Total investment income
Other income:
Interest and dividend income
Gains/(losses) on foreign currency
Government Assistance – COVID-19 related (i)
Total other revenue
Total revenue
Revenue
Carrying amounts of non
current assets
30-Jun-21
$
1,537,224
1,537,224
30-Jun-20
$
2,951,373
2,951,373
30-Jun-21
$
9,584,266
9,584,266
30-Jun-20
$
11,162,656
11,162,656
30-Jun-21
$
1,446,058
24,161
1,470,219
30-Jun-20
$
2,879,482
26,979
2,906,461
12,786
12,786
(32,009)
(32,009)
2,265
(52,478)
104,432
54,219
5,497
26,073
45,351
76,921
1,537,224
2,951,373
(i) The Company was eligible for, applied for and received COVID-19 related grants from the Commonwelath of Australia due
to a significant reduction in petroleum revenues during the financial year.
45
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
6. Employee benefit expense
Directors fees
Consultancy fees - Internal
Wages & salaries
Other employee benefit expenses
Total Employee benefit expense
30-Jun-21
$
83,471
320,000
219,817
52,888
676,176
30-Jun-20
$
87,412
398,000
215,867
46,309
747,588
Recharge and recoveries
The Group has the policy to allocate a portion of employee benefit expense to production, development, exploration and
evaluation assets based on employee time committed to various projects.
7. Income tax expense
The prima facie tax on profit from ordinary activities before income tax is
reconciled to the income tax as follows:
Prima facie tax payable on profit/(income tax benefit) from continuing
operations before income tax at 26% (2020 27.5%)
Consolidated group
Add: tax effect of non deductible expenses
Less: tax effect of expenditure claimed as deduction
Tax effect of Unused tax losses not recognised as deferred tax asset
$
(755,970)
725,116
(156,613)
(187,467)
$
(853,213)
988,980
(109,605)
26,162
Income tax expense attributable to loss from ordinary activities
-
-
The potential future income tax benefit arising from tax losses and timing differences has not been recognised as an asset
because recovery of tax losses is not probable and recovery of timing differences is not assured beyond reasonable doubt.
The potential future income tax benefit will be obtained if:
1) the relevant company derives future assessable income of a nature and an amount sufficient to enable the benefit to be
realised, or the benefit can be realised by another company in the Group in accordance with Division 170 of the Income Tax
Assessment Act 1997;
2) the relevant company and/or group continues to comply with the conditions for deductibility imposed by the Act; and
3) no changes in tax legislation adversely affect the Company and/or the group in realizing the benefit.
Bounty Oil and Gas NL and its wholly-owned subsidiaries have not formed a tax consolidation group.
8. Earnings/(loss) per share
Basic earnings/(loss) per share (cents per share)
Diluted earnings/(loss) per share (cents per share)
(0.28)
(0.28)
(0.33)
(0.33)
Net (loss)/profit used in the calculation of basic and diluted earnings/(loss) per share
(2,907,575)
(3,102,592)
Weighted average number of ordinary shares for the purposes
of basic and diluted EPS
9. Cash and cash equivalents
Deposits on call
Cash at bank
Total Cash and cash equivalents
No. of Shares No. of Shares
############
953,400,982
$
66,112
1,344,285
1,410,397
$
65,323
1,031,282
1,096,605
46
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
10. Trade and other receivables
Current
Trade and other receivables
Prepayments
Non-current
Other receivables
Total trade and other receivables
11. Inventories
Oil and other inventory
12. Other current financial assets
Financial assets at fair value through profit and loss - shares in
listed corporations
Total current financial assets
Note
23(d)
13. Property, plant and equipment
Plant and Equipment
Plant and equipment – at cost
Less accumulated depreciation
Total Property, plant and equipment
Movement in carrying amounts:
Movements in the carrying amounts for each class of property, plant and
equipment between the beginning and end of the financial year.
Opening Balance
Additions
Depreciation
Carrying amount at the end of the year
30-Jun-21
$
244,000
14,792
30-Jun-20
$
269,199
3,926
25,850
284,642
40,850
313,975
$
36,188
36,188
$
69,508
69,508
$
$
45,139
45,139
32,353
32,353
$
$
1,397,572
(505,475)
1,291,525
(412,602)
892,097
878,923
$
$
878,923
106,047
(92,872)
892,097
848,607
111,698
(81,380)
878,923
47
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
14. Non current assets
(a): Production and development assets
SW Queensland
Joint operation interest in ATP1189 Naccowlah Block – at cost
Less: Amortisation
East Queensland - PL 441 (ex-PL119) Downlands – at cost
Less: Depletion and amortisation
Rehabilitation costs – all petroleum properties
All other development assets
Total production and development assets
Note
25
30-Jun-21
30-Jun-20
$
$
3,688,794
(2,325,277)
4,389,846
(2,518,608)
3,602,977
(2,003,868)
3,872,238
(2,518,609)
599,716
633,033
1,769,690
5,604,161
1,657,559
5,243,330
Movement in carrying amounts of production & development assets:
$
$
Opening balance at the beginning of the year
Additions
Movement in rehabilitation
Impairment of production and development assets (see i below)
Amortisation of production assets
Carrying amount at the end of the year
5,243,330
715,557
(33,317)
-
(321,409)
5,604,161
5,041,992
733,523
(33,317)
-
(498,868)
5,243,330
(i) In accordance with the Group's accounting policies and procedures, the Group performs its impairment testing at the end
of each reporting period. A number of factors represented indicators of impairment. As at 30 June 2021, ATP 2028 Onshore
Queensland permit was relinquished and the investment was fully impaired. Refer to table in note 14(c) below. Further
commentary on impairment is included in the Directors' Report. No other impairments were recognised for this reporting
period.
Key assumptions used:
Crude oil price (US$)
Average AUD:USD exchange rate
CPI (%)
Post-tax real discount rate (%)
(b): Exploration and evaluation assets
Exploration assets
Total exploration and evaluation assets
2021-22
$65.00
$0.720
2.0%
7.0%
25
Movement in carrying amounts of exploration and evaluation assets:
Opening balance at the beginning of the year
Additions
Impairment of Exploration and evaluation asset (see i above)
Carrying amount at the end of the year
(c): Impairment of oil and gas properties
AC/P 32 Ashmore Cartier
ATP 2028
2023+
$60.00
$0.70
2.0%
7.0%
$
$
3,062,158
3,062,158
4,999,553
4,999,553
$
$
4,999,553
73,509
(2,010,904)
3,062,158
7,871,281
32,795
(2,904,523)
4,999,553
$
$
-
2,904,523
2,010,904
-
48
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
15. Trade and other payables
Current
Trade payables
Amounts owing to Joint Operations
GST, FBT, PAYG & superannuation liability
Total trade and other payables
16. Provisions
Current - Provision for employee entitlement
Non-current - Provision for employee entitlement
Non-current - Rehabilitation costs – petroleum properties
Movement in provisions
Opening balance
Unwinding of discount on provision
Net provisions recognised/(expensed)
Balance at the end of the period
30-Jun-21
30-Jun-20
$
$
915,869
464,366
41,203
1,421,438
$
88,043
31,817
1,338,146
1,369,963
1,354,185
27,516
(11,738)
1,369,963
393,646
843,104
39,064
1,275,814
$
61,335
28,424
1,325,761
1,354,185
1,332,305
27,645
(5,765)
1,354,185
The provision for rehabilitation costs represents the present value of best estimate of the future sacrifice of economic benefits
that will be required to remove the facilities and restore the affected areas at the Group’s operation sites. The rehabilitation of
the petroleum properties is expected to be undertaken between 1 to 20 years. The discount rate used in the calculation of the
provision as at 30 June 2021 was 2%, broadly equivalent to the Australian Government 10 year bond rate. Long service leave is
measured at the present value of benefits accumulated at the end of financial year. The liability is discounted using an
appropriate discount rate. The measurement requires judgement to determine key assumptions used in the calculation including
futures pay increases and settlement dates of employee's departure.
17. Issued capital
A reconciliation of the movement in capital for the Company can be found in
the Consolidated Statement of Changes in Equity
1,096,400,982 fully paid ordinary shares (2020: 953,400,982)
Nil options transferred to share option reserve on expiry (2020: Nil)
(a) Movement in fully paid ordinary shares
Balance at beginning of period
Balance at end of period
$
$
44,860,163
201,600
45,061,763
43,440,163
201,600
43,641,763
No. of Shares
1,096,400,982
1,096,400,982
No. of Shares
953,400,982
953,400,982
18. Reconciliation of cash flow from continuing operations
Reconciliation of Cash Flow from continuing operations with profit/(loss) after income tax.
Profit/(Loss) from continuing operations after income tax
$
$
(2,907,575)
(3,102,592)
Non-cash flows in profit/(loss) from continuing operations:
Depreciation and amortisation
Fair value movement in marketable financial assets
Foreign exchange differences
Movement in employee benefit obligation
Impairment and Write-off of exploration assets
Impairment of oil and gas assets
Accrued interest expense
Change in trade and other receivables
Change in inventory
Change in rehabilitation obligation
Change in trade & other payables
Net Cash from continuing operations
423,316
(12,786)
(58,886)
42,486
2,010,904
-
5,795
40,802
33,320
27,516
(120,136)
(515,244)
580,248
32,009
(20,315)
21,289
-
2,904,523
6,087
278,377
(15,219)
70,904
262,680
1,017,991
49
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
19. Share based payments
No share based payment compensation was granted to directors or senior management during the financial year ended 30th
June 2021 and there was Nil expensed (2020: Nil). During the year, no directors or senior management exercised options that
were granted to them as part of their compensation in prior periods.
20. Key management personnel
a) Key Management Personnel Compensation
The aggregate remuneration made to Key Management
Personnel of the group is set out below:
Short term employee benefits
Share based payments
Total
30-Jun-21
$
30-Jun-20
$
403,535
-
403,535
470,460
-
470,460
Apart from the details disclosed in this note, no director or key management person has entered into a material contract with
the consolidated entity since the end of the previous financial year and there were no material contracts involving directors’ or
executives’ interests existing at year-end.
Information regarding individual directors' and executives' compensation and some equity instrument disclosures as permitted
by the Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors' Report.
b) Equity Instrument Disclosures Relating to Key Management Personnel
i) Options provided as remuneration and shares issued on exercise of such options: Nil
ii) Share holdings
The movement during the reporting period in the number of ordinary shares in Bounty Oil and Gas N.L. held, directly, indirectly
or beneficially, by each key management person, inculding related parties, is as follows:
2021
Directors
G Reveleigh
R Payne
C Ross
Executives
P Kelso
2020
Directors
G Reveleigh
R Payne
C Ross
Executives
P Kelso
Balance at Start
of the Year
Purchases
Received on
exercise of
Options
Received other
Sales
Held at the end
of Year
21,377,928 1,000,000 - - 1,000,000 21,377,928
- - - - - -
3,200,000 - - - - 3,200,000
37,987,492
300,000
-
4,000,000 34,287,492
23,377,928 - - - 2,000,000 21,377,928
- - - - - -
3,200,000 - - - - 3,200,000
56,135,175 1,352,317 - - 19,500,000 37,987,492
No shares were granted to key management personnel during the financial year or during the previous financial year.
c) Key Management Personnel - other loans and advances
No loans were made to key management personnel including their personally related entities during the financial year ended 30
June 2021 and no loans were outstanding at the end of the prior period. During the year the Company repaid $106,000 (net),
being part of short term interest free loan advanced by related entities of the CEO in previous years. At 30 June 2021 loans
outstanding to related entities of the CEO were approximately $162,000 inclusive of accrued interest charge at 10% p.a. on a
$62,000 portion of the advance, for the financial year.
50
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
20. Key management personnel (continued)
d) Other transactions with key management personnel
Other than the transactions disclosed in the Remuneration Report contained in the Directors’ Report, during the financial year,
$8,400 liability was recognised for site management services, and $17,137 was paid for office rent to firms in which Mr. P.
Kelso is a director.
Aggregate amounts of each of the above types of other transactions with entities associated with key management personnel
of Bounty Oil & Gas NL:
Payment for acquisition of Rough Range Oil Pty Ltd.
Site management services for PL2
Rent of office
21. Commitments
30-Jun-21
$
-
8,400
17,137
25,537
30-Jun-20
$
19,000
4,200
-
23,200
In order to maintain current rights of tenure to its licences and permits, the company has certain obligations to perform work in
accordance with the work programmes, as approved by the relevant statutory body, when the permits are granted. These work
programs form the capital commitment which may be renegotiated, varied between permits, or reduced due to farm-out, sale,
reduction of permit/licence area and/or relinquishment of non-prospective permits. Work in excess of the work programs may
also be undertaken.
The following capital expenditure requirements have not been provided for in the accounts:
Payable
Not longer than 1 year
Longer than 1 year and not longer than 5 years
There are no lease commitments at the balance date.
22. Related party transactions
a. The Group’s main related parties are as follows:
$
842,000
1,852,400
2,694,400
$
1,037,000
2,851,750
3,888,750
Key Management Personnel
Any person(s) having authority or responsibility for planning, directing and controlling the activities of the Group, directly or
indirectly, including any director (whether executive or otherwise) of the Group are considered as key management personnel.
Disclosures relating to key management personnel are set out in Note 20 and in the Directors Report.
Controlled entities
Details of the percentage of ordinary shares held in controlled entities are disclosed in Note 24.
All inter-company loans and receivables are eliminated on consolidation and are interest free with no set repayment terms.
b. Transactions with other related parties:
The Group has a related party relationship with its joint ventures/joint operations (note 25) and with its key management
personnel. The Company and its controlled entities engage in a variety of related party transactions in the ordinary course of
business. These transactions are generally conducted on normal terms and conditions.
There were no transactions with related parties other than as disclosed in Note 20 and this Note 22.
23. Financial instruments
a) Capital management:
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximising
the return to stakeholders. The Group’s overall strategy remains unchanged from last financial year.The Group's capital
structure consists of equity (comprising issued capital, reserves and retained earnings as detailed in Consolidated Statement of
Changes in Equity) and no debt. The Group is not subject to any externally imposed capital requirements.
The Board reviews the capital structure of the Group on an on-going basis. As part of this review, the Board considers the cost
of capital and associated risks.
The gearing ratio at the end of the reporting period was nil (2020: nil).
51
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
23. Financial instruments (continued)
b) Categories of financial instruments:
Financial assets
Cash and cash equivalents
Loans deposits and receivables
Available for sale financial assets designated as at FVTPL
Total financial assets
Financial liabilities
Other amortised cost - trade creditors
Total financial liabilities
Note
12
30-Jun-21
30-Jun-20
$
1,410,397
284,642
45,139
1,740,178
$
1,096,605
313,975
32,353
1,442,933
(1,421,438)
(1,421,438)
(1,275,814)
(1,275,814)
c) Financial risk management objectives:
The main risks the company is exposed to through its financial instruments are interest rate risk, foreign currency risk, liquidity
risk, credit risk and price risk.
Foreign currency risk:
Foreign currency risk is managed by retaining majority of its cash and payables in Australian currency. Petroleum sales are
received in USD with short term credit terms. The Group does not currently use derivative financial instruments to hedge
foreign currency risk and therefore is exposed to daily movements in exchange rates. However, the Group intends to maintain
sufficient USD cash balances to meet its USD obligations.
Liquidity risk:
The Group manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forecast
and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
Credit risk:
Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in a financial loss to the
Group and arises principally from the Group’s receivables from customers and cash deposits. The Group’s 2020 trade
receivables are deposits and amounts due from State government departments and major Oil & Gas companies in Australia.
The Group exited the joint operations during the year and these receivables have now been adjusted against related payables,
and balance fully impaired.
The Company does not have any material credit risk exposure to any single debtor or company of debtors under financial
instruments or collateral securities entered into by the Company.
Exposure to credit risk is monitored on an ongoing basis. The maximum exposure to credit risk is represented by the carrying
amount of each financial asset in the statement of financial position.
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure
to credit risk at the reporting date was:
Carrying amount:
Cash and cash equivalents
Trade and other receivables
30-Jun-21
$
1,410,397
284,642
1,695,039
30-Jun-20
$
1,096,605
313,975
1,410,580
All cash held by the Group is deposited with investment grade banks and any expected credit loss is immaterial.
The aging of the Group’s trade receivables at reporting date was:
30-Jun-21
30-Jun-20
Past due
Not past due
Commodity risk:
The sales revenue of the company is derived from sales of oil at the prevailing $US TAPIS or Dated Brent oil price on the
Singapore market. The Group does not trade in derivative contracts to manage price and exchange risk.
Gross $
Impairment
$
- - -
258,792 - 273,125
Gross $
Impairment
$
-
-
d) Fair value of financial instruments:
Some of the Group's financial assets and financial liabilities are measured at fair value at the end of each reporting period. The
following table gives information about how the fair values of these financial assets and financial liabilities are determined (in
particular, the valuation technique(s) and inputs used).
52
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
d) Fair value of financial instruments (continued):
The fair values of financial assets and liabilities with standard terms and conditions and traded on active liquid markets
are determined with reference to quoted market prices. The fair values of other financial assets and financial liabilities
are determined in accordance with generally accepted pricing models based on discounted cash flow analysis.
Except as detailed in the following table, the directors consider that the carrying amounts of financial assets and
financial liabilities recognised in the consolidated financial statements approximate their fair values.
Consolidated
Fair value hierarchy
30-Jun-21
$
30-Jun-20
$
Financial assets at fair value
through profit or loss (see
note 12)
Quoted bid prices
in an active market
Level 1
45,139
32,353
e) Sensitivity analysis
The company does not perform sensitivity analysis with respect to interest rate risk, foreign currency risk, liquidity risk,
credit risk or price risk.
24 . Controlled entities
Country of Incorporation
The consolidated financial statements incorporate the assets, liabilities and results of the following controlled
entities in accordance with the accounting policy described in note 2 (c)(i).
Name of entity
Ausam Resources Pty Ltd.
Interstate Energy Pty Ltd.
Rough Range Oil Pty Ltd.
Lansvale Oil & Gas Pty Ltd. (2)
(1) The proportion of ownership interest is equal to the proportion of voting power held.
(2) Voluntary deregistration of dormant subsidiary.
Class of shares
Ordinary
Ordinary
Ordinary
Ordinary
Equity holding % (1)
100
100
100
100
100
100
100
-
Australia
Australia
Australia
Australia
30-Jun-21
30-Jun-20
25. Interest in joint operations
Set out below are the joint arrangements of the Group as at 30 June 2021, which in the opinion of the directors are
material to the Group:
Name of the joint
arrangement
ATP 1189P Naccowlah block
ATP 2028P
PEP11
Measurement
Method
Proportionate Adelaide, Australia
Proportionate Brisbane, Australia
Proportionate Perth, Australia
Principal
activity
Production
Exploration
Exploration
Principal place of
business
Ownership interest (%)
(*approx)
2%
-
15%
2%
50%
15%
The company holds 2% interest in various Petroleum Leases and part of ATP 1189P, Queensland and associated oil
production tangibles and pipelines referred to as the Naccowlah Block.
Details of the total revenue and expenses derived from or incurred in ATP 1189P joint operations and the company’s
share of the assets and liabilities employed in these joint operations are as follows:
Revenue from petroleum
Petroleum and all other expenses
Net Profit/(Loss) from joint operations
Current assets
Trade receivables
Inventories
Non current assets
Property, plant & equipment (net of accumulated depreciation)
Other non-current assets
Total assets in joint operations
Current liabilities - Trade and other payables
Non current liabilities - Provisions
Total liabilities in joint operations
Net interest in joint operations
53
30-Jun-21
$
1,470,219
(1,368,442)
101,777
30-Jun-20
$
2,906,461
(2,104,748)
801,713
244,040
36,188
266,317
69,508
582,294
1,963,233
2,825,755
464,366
1,042,381
1,506,747
579,520
2,232,142
3,147,487
843,104
1,047,089
1,890,193
1,319,008
1,257,294
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
25. Interest in joint operations (continued)
The Group’s joint operations agreements require majority consent from all parties for all relevant activities. The joint
participants own the assets of the joint operations as tenants in common and are jointly and severally liable for the liabilities
incurred by the joint operations. These entities are therefore classified as joint operations and the group recognises its direct
right to the jointly held assets, liabilities, revenues and expenses as described in note 2(c)(ii) & 2(d).
The accounting policies adopted for the group’s joint operations are consistent with those in previous financial year.
The company’s share of revenue and expenses from joint operations are included in the Consolidated Statement of
Comprehensive Income. The company’s share of the assets and liabilities held in joint operations are included in the
Consolidated Statement of Financial Position.
Interests in other joint operation entities
Also included in the Consolidated Financial Statements as at 30 June 2021, the group held interests in joint operations whose
principal activities were exploration, evaluation and development of oil and gas but not accruing material revenue.
The company contributes cash funds to the joint operations by way of cash calls for a specified percentage of total exploration
and development activities. Other than the ATP1189P Naccowlah Block production Joint Operations none of the joint
operations hold any material assets and accordingly the Company’s share of exploration, evaluation and development
expenditure is accounted for in accordance with the policy set out in Note 1.
26. Parent entity information
The accounting policies of the parent entity, which have been applied in determining the financial information shown below,
are same as those applied in the consolidated financial statements. Refer to Note 1 for a summary of the significant accounting
policies relating to the Group. After review of policies, the Board resolved to reclassify the intercompany loans to controlled
entities as non current assets.
The individual financial statements for the parent entity Bounty Oil & Gas NL show the following aggregate amounts:
Statement of Financial Position
Assets
Current assets
Non-current assets
Total Assets
1,670,459
12,311,115
13,981,574
1,376,654
12,315,706
13,692,360
30-Jun-21
$
30-Jun-20
$
Liabilities
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Retained earnings/Accumulated losses
Total Equity
Statement of Profit and Loss and other Comprehensive Income
Loss for the year
Other comprehensive income/(loss)
Total Comprehensive loss for the year
Commitments for Capital Expenditure
No longer than 1 year
Longer than 1 year and not longer than 5 years
Total
There are no operating lease commitments at the balance date.
54
938,756
1,123,893
2,062,649
11,918,925
1,230,577
1,121,182
2,351,759
11,340,601
44,860,163
201,600
(33,142,837)
11,918,926
43,440,163
201,600
(32,301,162)
11,340,601
(841,675)
-
(841,675)
(3,050,349)
-
(3,050,349)
730,000
1,606,000
2,336,000
894,000
2,458,500
3,352,500
Bounty Oil & Gas NL
Annual Report - 2021
Notes to the consolidated financial statements
for the year ended 30 June 2021
27. Contingent liabilities and contingent assets
As at the date of this report, there were no contingent assets or liabilities except that a local government authority claimed
$458,511 rates and levies for prior and current periods from one controlled entity of the group. That amount has been
recognised in current liabilities.
There was no litigation against or involving the parent entity Bounty Oil & Gas N.L.
28. Events occurring after the reporting period
No other matters or circumstances have arisen since the end of the financial year which have significantly affected or may
significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in
future financial years, other than those referred to in note 27 above.
29. Auditors remuneration
Remuneration of the auditors of the Company for:
- Auditing or reviewing the financial reports for year
Total
30-Jun-21
30-Jun-20
$
32,010
32,010
$
30,000
30,000
The auditor to Bounty Oil & Gas NL is William M Moyes, Suite 1301, Level 13, 115 Pitt Street, Sydney NSW 2000.
30. Company details
Bounty Oil & Gas NL’s registered office and its principal place of business are as follows:
Registered Office
Level 7, 283 George Street
Sydney, NSW, 2000, Australia
Tel: (02) 9299 7200
Principal place of business
Level 7, 283 George Street
Sydney, NSW, 2000, Australia
Tel: (02) 9299 7200
55
Bounty Oil & Gas NL
DIRECTORS’ DECLARATION
Annual Report - 2021
a) The directors of Bounty Oil and Gas NL (“the Company”) declare that the financial statements and notes, as set out on pages
16 to 42 are in accordance with the Corporations Act 2001:
(i) comply with Accounting Standards and the Corporations Regulations 2001; and
(ii) give a true and fair view of the financial position as at 30th June 2021 and of the performance for the year ended on that
date of the Company;
b) The Chief Executive Officer and the Chief Financial Officer have each declared that:
(i) The financial records of the company for the financial year have been properly maintained in accordance with Section 286 of
the Corporations Act 2001.
(ii) The financial statements and notes for the financial year comply in all material respects with the Accounting Standards;
(iii) The financial statements and notes give a true and fair view.
c) In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as when they
become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Graham Reveleigh
Director
Dated: 30 September 2021
56
11 to 14
Bounty Oil & Gas NL
Annual Report - 2021
1. Additional Information Required by ASX Listing Rules
The following is additional information provided in accordance with the Listing Rules of the Australian
Securities Exchange Limited.
Analysis of equity security holders as at 23 September 2021:
a) Analysis of numbers of holders of fully paid ordinary shares:
No. of Securities
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above
No. of
Shareholders
228
115
386
2,340
1,283
4,352
b)
Twenty largest holders of quoted equity securities at 23 September 2021:
Ordinary Shareholders
Robert A Hutchfield
Comadvance Pty Ltd.
David Alan McSeveny
Fully paid
number
39,098,909
29,348,155
29,300,687
Barry Sheedy & Associates Pty Ltd.
27,893,700
Red Kite Capital Inc.
Bang Vi Khanh
Zanamere Pty Ltd.
Tri-Ex Holdings Pty Ltd.
WH Ave LLC
Kestrel Petroleum Pty Ltd.
Jordan Vujic
GH Corporate Services Pty Ltd
Citicorp Nominees Pty Ltd.
Airen Youhanna
Milica Vujic
BNP Paribas Nominees Pty Ltd.
George Stilianos
William John Tyler & Sybil Tyler
Robert Cameron Galbraith
Christa Baiano
27,022,000
21,600,000
21,377,928
19,177,778
18,000,000
15,175,000
12,095,572
11,283,061
9,776,282
8,930,000
7,642,888
7,504,591
7,460,000
7,000,000
6,300,000
6,171,548
%
3.57%
2.68%
2.67%
2.54%
2.46%
1.97%
1.95%
1.75%
1.64%
1.38%
1.10%
1.03%
0.89%
0.81%
0.70%
0.68%
0.68%
0.64%
0.57%
0.56%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Total Top 20 Holders
332,158,099
30.30%
c) Options as at 23 September 2021:
i)
ii)
there were no listed and quoted options over ordinary shares.
there were no unlisted options over ordinary shares.
60
Bounty Oil & Gas NL
Annual Report - 2021
2.
Substantial Shareholders
As at 23 September 2021 there were no substantial shareholders as disclosed in substantial
shareholders notices given to the company.
3.
Issued Shares and Distribution
a)
b)
c)
The total number of fully paid ordinary shares on issue on 23 September 2021 was
1,096,400,982.
There were 1,912 holders of less than a marketable parcel of ordinary shares, totalling
28,375,269 shares being 2.59% of number of fully paid ordinary shares on issue.
The percentage of the total holding of the 20 largest shareholders of ordinary shares was
30.30% of issued capital.
4.
Stock Exchange Listing
Quotation has been granted for all the ordinary shares of the company on the Australian Securities
Exchange (ASX) under the code BUY.
5.
Income Tax
The company is taxed as a public company.
6. Voting Rights
The voting rights attaching to ordinary shares are governed by the Constitution. At a meeting of
members every person present who is a member or representative of a member shall on a show of
hands have one vote and on a poll, every member present in person or by proxy or by attorney or duly
authorised representative shall have one vote for each share held. No options have any voting rights.
7. Additional Information
Information in these financial statements (or in the annual report) that relates to or refers to
petroleum exploration and prospectivity or petroleum or hydrocarbon reserves or resources is based
on information compiled and/or written by Mr Philip F Kelso the CEO of Bounty Oil & Gas NL. Mr Kelso
is a Bachelor of Science (Geology) and has practised geology and petroleum geology for in excess of 45
years. He is a member of the Petroleum Exploration Society of Australia and a Member of the
Australasian Institute of Mining and Metallurgy. Mr Kelso is a qualified person as defined in the ASX
Listing Rules: Chapter 19 and consents to the reporting of that information in the form and context in
which it appears in this report.
The company continues to comply with the ASX Listing Rules disclosure requirements. The company
reports to ASX which makes available all reports to those who wish to access them. All ASX releases
and other background information are posted regularly on the company’s website. The company
intends to post on its website its annual report and all other required notices to its shareholders.
The board reviews and receives advice on areas of operational and financial risks. Business risk
management strategies are developed as appropriate to mitigate all identified risks of the business.
The directors are aware of the guidelines for the content of a code of conduct to guide compliance
with legal and other obligations to shareholders but have not formally established such a code. Where
applicable to its activities, the directors ensure that the company is responsible to its shareholders,
employees, contractors, advisers, individuals and the community.
8.
Secretary
The name of the Secretary of the company is Mr. Sachin Saraf.
9.
Share Buy Back
There is no current on market share buy-back.
61
Bounty Oil & Gas NL
Annual Report - 2021
Schedule of Petroleum Tenements – 23 September 2021
Permit
Operator
Basin
Expires
Status
Interest
Gross
Km2
Net
Km2
Offshore Australia
PEP-11
Asset2
Onshore Western Australia
Sydney
12/02/2021 Suspended
15%
4576.4
686.5
L 16
Rough Range3
Carnarvon 23/09/2031 Granted
10%
79.5
8.0
Onshore SW Queensland
ATP 1189 N
PL 1026
PL 1047
Santos4
Santos4
Santos4
Cooper
Cooper
31/12/2022 Granted
8/07/2024 Granted
Eromanga
PL 1060
Santos4
Eromanga
PL 1093
Santos4
Cooper
Under
Application
Under
Application
Under
Application
Santos4
Eromanga 15/12/2019 Renewing
PL 133/PL
1085
PL 149
PL 175
PL 181
PL 182
PL 23
PL 24
PL 25
PL 26
PL 287
PL 302
PL 35
PL 36
PL 495
PL 496
PL 62
PL 76
PL 77
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
PL 78
PL 79/PL
1078
PL 82/PL
1079
PL 87/PL
1080
Onshore Surat Basin Queensland
Santos4
Santos4
PL 2
PL 2A
PL 2 B
PL 2 C
PCA 159
ATP 1190 SG
Bounty1
Bounty1
Bounty1
Bounty1
AGL6
AGL6
Eromanga 23/06/2049 Granted
Eromanga 19/04/2025 Granted
Eromanga 12/09/2024 Granted
Eromanga 12/09/2024 Granted
Eromanga 31/08/2028 Granted
Eromanga 31/08/2028 Granted
Eromanga 29/02/2020 Renewing
Eromanga 29/02/2020 Renewing
Eromanga 11/10/2027 Granted
Eromanga 31/07/2031 Granted
Eromanga 10/07/2028 Granted
Eromanga
7/04/2023 Granted
Eromanga 29/09/2024 Granted
Eromanga 29/09/2024 Granted
Eromanga 15/04/2022 Granted
Eromanga 23/11/2022 Granted
Eromanga 23/11/2028 Granted
Eromanga 23/11/2022 Granted
Eromanga
6/09/2020
Renewing
Eromanga
6/09/2020
Renewing
Eromanga
6/09/2020
Renewing
Surat
Surat
Surat
Surat
Surat
Surat
31/12/2032 Granted
31/12/2032 Granted
31/12/2032 Granted
31/12/2032 Granted
17/12/2022 Granted
28/02/2023 Granted
62
2%
2%
2%
314.3
18.3
31.8
2%
127.8
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
2%
100%
81.75%
81.75%
100%
24.748%
24.748%
45.8
12.2
12.2
27.5
18.3
27.5
234.6
200.9
256
256
12.2
12.2
136.5
60.9
9.2
12.2
64.7
39.5
12.2
12.1
9.2
18.3
27.5
9.4
42.5
45.6
36.1
15.3
15.3
6.3
0.4
0.6
2.6
0.9
0.2
0.2
0.6
0.4
0.6
4.7
4.0
5.1
5.1
0.2
0.2
2.7
1.2
0.2
0.2
1.3
0.8
0.2
0.2
0.2
0.4
0.6
9.4
34.7
37.3
36.1
3.8
3.8
Bounty Oil & Gas NL
Annual Report - 2021
PL 441
Ausam5
Surat
4/06/2031 Granted
100%
21.4
21.4
Onshore South Australia (Supra Permian JV)
PRL 35 FO
PRL 37 FO
PRL 38 FO
PRL 41 FO
PRL 43 FO
PRL 44 FO
PRL 45 FO
PRL 48 FO
PRL 49 FO
Total
PPL588
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Cooper
Cooper
Cooper
Cooper
Cooper
Cooper
Cooper
Cooper
Cooper
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
28/04/2024 Granted
Bounty
Surat
90.2
97.5
99.5
91.3
96.9
99.1
90.2
96.9
97.4
21.0
22.7
23.2
21.3
22.6
23.1
21.0
22.6
22.7
7505.0
1077.0
23.28%
23.28%
23.28%
23.28%
23.28%
23.28%
23.28%
23.28%
23.28%
100%
Operators / Notes
1. Bounty Oil & Gas NL
2. Asset Energy Pty Ltd is a wholly owned subsidiary of Advent Energy Ltd.
3. Rough Range Oil Pty Ltd. - is a wholly owned subsidiary of Bounty Oil & Gas NL
4. Santos Limited group companies
5. Ausam Resources Pty Ltd - is a wholly owned subsidiary of Bounty Oil & Gas
6. AGL Gas Storage PL
7. Beach Energy Limited
8. Petroleum Pipeline Licence 58
63
Bounty Oil & Gas NL
Annual Report - 2021
ABBREVIATIONS
The following definitions are provided for readers who are unfamiliar with industry terminology:
AVO
Barrel (bbl/BBL)
Basin
BCF/Bcf
BOPD/BPD
Contingent Resources
CSG
GIIP
Lead
License
MCF/Mcf
MDRT
MMB/mmb,
MMBO/mmbo
MMCF/mmcf,
MMCFG/mmcfg,
MMCFGPD/mmcfgpd
NOPTA
P10
P90
PCA
Permeability
Permit
Play
Plug and Abandon
(P&A)
Pmean
Porosity
Prospect (petroleum)
Prospective Resources
PSA
PSC
PRL
Reserves
Reservoir
Specialised analysis of seismic data comparing amplitude of sound waves versus
collection point offsets
A unit of volume of oil production, one barrel equals 42 US gallons, 35 imperial gallons
or approximately 159 litres
A segment of the earth’s crust which has down warped and in which sediments have
accumulated, such areas may contain hydrocarbons
Billion cubic feet, i.e. 1,000 million cubic feet (equivalent to approximately 28.3 million
cubic metres) of gas
Barrels of oil per day; barrels per day
Discovered resources, not yet fully commercial
Coal seam gas
Gas initially in place
A structural or stratigraphic feature which has the potential to contain hydrocarbons
An agreement in which a national or state government gives an oil Company the rights
to explore for and produce oil and/or gas in a designated area
Thousand cubic feet – the standard measure for natural gas
Measured depth below Rotary Table
Million barrels, million barrels of oil
Million cubic feet, million cubic feet of gas, million cubic feet of gas per day
National Offshore Petroleum Authority (Australia)
10% probability of occurrence
90% probability of occurrence
Potential Commercial Area (State of Queensland)
The degree to which fluids such as oil, gas and water can move through the pore spaces
of a reservoir rock
A petroleum tenement, lease, licence or block
A geological concept which, if proved correct, could result in the discovery of
hydrocarbons
The process of terminating operations in a well. Cement plugs are set in the borehole
and the rig moves off the location. The borehole is thus left in a safe condition. In some
cases, where the Operator considers it possible that the well may be re-entered at a
later date, the well may be only temporarily plugged and abandoned
The average (mean) probability of occurrence
The void space in a rock created by cavities between the constituent mineral grains.
Liquids are contained in the void space
A geological or geophysical anomaly that has been surveyed and defined, usually by
seismic data, to the degree that its configuration is fairly well established and on which
further exploration such as drilling can be recommended
Undisclosed resources
Production Sharing Agreement
Production Sharing Contract
Petroleum Retention Lease (South Australia)
Quantities of economically recoverable hydrocarbons estimated to be present within a
trap, classified as prove, probably or possible
A subsurface volume of rock of sufficient porosity and permeability to permit the
accumulation of crude oil and natural gas under adequate trap conditions
64
Bounty Oil & Gas NL
Annual Report - 2021
Seal, Sealing Formation
Seismic Survey
Spud
Stratigraphic Trap
Structure
Sub-basin
TCF/Tcf
TVDS
Up-dip
A geological formation that does not permit the passage of fluids. Refer also to Cap
Rock
A type of geophysical survey where the travel times of artificially created seismic waves
are measured as they are reflected in a near vertical sense back to the surface from
subsurface boundaries. This data is typically used to determine the depths to the tops
of stratigraphic units and in making subsurface structural contour maps and ultimately
in delineating prospective structures
To start the actual drilling of a well
A type of petroleum trap which results from variations in the lithology of the reservoir
rock, which cause a termination of the reservoir, usually on the up dip extension
A discrete area of deformed sedimentary rocks, in which the resultant bed configuration
is such as to form a potential trap for migrating hydrocarbons
A localised depression within a basin
Trillion cubic feet
Total vertical depth below Sea Level
At a structurally higher elevation within dipping strata
65
Bounty Oil & Gas NL
Annual Report - 2021
CORPORATE DIRECTORY
Board of Directors
Share Registry
Graham C. Reveleigh (Chairman)
Charles Ross
Roy Payne
Automic
Level 5, 126 Philip Street
Sydney NSW 2000
Telephone:
Email:
+61 2 9698 5414
hello@automic.com.au
Chief Executive Officer
Bankers
Philip F. Kelso
BankWest, Perth
Commonwealth Bank of Australia, Sydney
Company Secretary
Legal Counsel
Sachin Saraf
Dentons Australia
77 Castlereagh Street
Sydney NSW 2000
Registered and Principal Office
Independent Consulting Petroleum Engineers
Level 7, 283 George Street
Sydney NSW 2000
Australia
Telephone: +61 2 9299 2007
Facsimile: +61 2 9299 7300
Email:
Website:
corporate@bountyoil.com
www.bountyoil.com
Apex Energy Consultants Inc.
700, 815 8th Avenue S.W.
Calgary, Alberta, T2P 3P2
Canada
Auditors
Mr. William M Moyes
Moyes Yong & Co
Suite 1301, Level 13
115 Pitt Street
Sydney NSW 2000
Telephone:
Facsimile:
+61 2 8256 1100
+61 2 8256 1111
66