Bounty Oil & Gas NL Annual Report 2022

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FY2022 Annual Report · Bounty Oil & Gas NL

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ANNUAL
REPORT

2022

2022Bounty is one of the few listed small cap 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 + Rough Range, Carnarvon Basin, WA oil) as prices strengthen in the

face of disinvestment by majors and major market disruptions in Europe.

Cerberus prospects and leads have the potential for hundreds of millions of

barrels of oil to be found.

K EY OUTC OMES

Full Year 2022 - Results

› Group petroleum revenue for the year was up 29% to $1.90 million

(2021: $1.47 million) from Queensland oil sales as crude oil prices recovered sharply

› Cash and current assets at 30 June 2022 doubled to $3.34 million with zero debt

› Bounty continued oil production from Naccowlah Block exploiting the additional

reserves proved by development and NFE drills in 2019/2021

› Operating loss of $0.36 million (2021: $0.45 million) before non-cash expenses

2 022 OUTLOOK

› With oil prices currently above A$120/ bbl Bounty will participate in 4 further oil

development and NFE drills in 2022/23 at its Cooper Basin project and produce its

operated Surat Basin projects

› PEP 11 Joint Venture: pursuing title continuation in the Federal Court of Australia as

record natural gas prices predicted

› Cerberus Project WA: offers major oil exploration targets subject to drilling funding

discussions in progress

Bounty Oil & Gas NL

Annual Report - 2022

TABLE OF CONTENTS

2023 Outlook and Key Outcomes

Chairman’s Review

CEO’s Review

Project and Operations Review

Corporate Governance Statement

Page

Inside
Cover

3 - 5

6 - 13

Directors Report including Remuneration Report

14 - 26

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

Notes to and Forming Part of the Financial Statements

33 – 54

Directors Declaration

Independent Auditors Report to Members

Additional Information Required by ASX Listing Rules

Schedule of Petroleum Tenements

Abbreviations

Corporate Directory

56 - 59

60 - 61

62 - 63

64 - 65

Bounty Oil & Gas NL
ACN: 090 625 353
ABN: 82 090 625 353

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

Annual Report - 2022

CHAIRMAN’S REVIEW

Dear Shareholder

FY 2022 has seen strong conflicting currents in Bounty seeking to increase shareholder value.

Bounty and Australia have seen the absolute imperative of exploring for and developing our own oil and gas
resources in a stable, committed and clear regulatory regime. The European Union has discovered that their
climate change policies must be rejected as their politicians have confronted the brutal realty of sanctions and
declining deliveries from Russia as a result of the Ukraine War.

Closer to home Bounty has continued to produce oil while very actively seeking additional material projects.
The Company has however encountered the same conflicting currents between climate change and related
political intervention on PEP 11. Its deleterious effect on petroleum related equities with the addition of high
interest rates and inflation notwithstanding petroleum shortages, is unprecedented. Bounty and our joint
venture partner, BPH Energy Limited (ASX: BPH), have been impacted by the December 2021 Federal
Government intervention which prevented the PEP 11 Joint Venture from funding and conducting a drill test
for natural gas in the offshore Sydney Basin.

Current and 2023 projections for record eastern Australia natural gas prices have exposed the error of this
intervention and justify an immediate extension of PEP 11 to proceed with a drill test to test the multi TCF
natural gas prospect at Baleen in PEP 11.

The Joint Venture calls on all of our elected Federal and NSW representatives to show real leadership and allow
Australian companies like BPH and Bounty to have secure titles free from sovereign risk and be allowed to use
their skill and shareholder resources to explore for natural gas. In East Australia there is a critical gas shortage
affecting our strategic secondary industries and retail consumers.

We hope that the current Federal Court of Proceedings led by the PEP 11 operator BPH will allow this project
to move forward in 2023.

Bounty continues to participate in development drilling and maintaining or increasing its oil reserves in the
Naccowlah Block and is committed to participate in 4 wells with the operator Santos Limited in 2023.

Bounty also expects to commence oil production from its long-held Surat Basin oil and gas leases in 2023..

Bounty anticipates that its farmin to the Cerberus permits offshore WA will move forward with drilling in 2023
subject to satisfactory funding discussions now going on between Bounty and the permit holders, Coastal Oil &
Gas Pty Ltd.

The Cerberus permits present a very exciting opportunity to test major shallow water oil targets.

Bounty closed out the period in a stronger position and remains very confident that its focus on petroleum
development and production will rewarded shareholders.

I wish to thank my Board members and executives for their enduring support during the year. I particularly
thank our non-executive director Mr Roy Payne, who retired this year for his service to the company and
welcome Sachin Saraf to the Board.

Graham Reveleigh
Chairman

31 October 2022

Bounty Oil & Gas NL

Annual Report - 2022

CEO’S REVIEW

Highlights for the Financial Year:

•

•
•
•

•

•
•

Bounty continued oil production from Naccowlah Block exploiting the additional reserves proved by
development and NFE drills in 2019/2021.
Cash and current assets at 30 June 2022 doubled to $3.34 million with zero debt.
Petroleum revenue rose by 29% to $1.90 million as crude oil prices recovered sharply.
Operating loss of $0.36 million (2021: $0.45 million) before non-cash expenses comprised of $2.12
million for amortisation of producing oil & gas assets and a write-off of exploration drill expenses.
Bounty’s proven oil & gas resources in the Cooper and Surat Basins in Queensland provide platform for
continued significant revenue growth.
Bounty is participating in oil development and NFE drills in 2022/23.
PEP 11 Joint Venture pursuing title continuation in the Federal Court of Australia.

Bounty Diversifying into Western Australia Offshore Projects

In addition to the Cerberus Project (see below) 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 title continuation.

Cerberus Project Offshore Carnarvon Basin WA – Bounty Earning 25%

On 7 October 2021 Bounty entered a farmin agreement with Coastal Oil and Gas Pty Ltd (“Coastal”) to earn a
25% interest in this shallow water oil project, offshore Carnarvon Basin, West Australia by contributing $500,000
to seismic interpretation and drill planning. Subject to Coastal confirming funding for the balance drilling
expenses Bounty would then contribute $5.5 million to drilling expenses to earn its interest in the four Cerberus
Permits. The project 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 high case prospective resources of over 600 million barrels.

Bounty contributed $500,000 to seismic interpretation and drill planning and an additional $100,000 to assist
the project. At 30 June 2022 it had therefore contributed $600,000 cash to the joint account and other
expenditure via management resources. As a result on 6 April 2022; Bounty exercised an option to earn
additional equity up to a total of 50% of the four Cerberus Permits by contributing an additional $9 million to
drill expenses. Further capital contributions are conditional upon Coastal funding milestones.

During the period, EP 490, EP 491 and TP/27 had extensions of the permit terms and suspensions of the current
work programs approved by the West Australia state regulator; DMIRS. Extension of E475 is contingent on firm
drill commencement.

Cerberus Prospects Main Points

•

Bounty Group and Coastal will jointly operate the proposed 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 of 570 mmbls – see map and table in Project and Operations Review below.

An Expression of Interest was 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.
Bounty and Coastal are in active discussions on the further funding of this exciting project in a
challenging equity raising environment where Federal and State Government interventions in an
attempt to change the Earth’s climate continue to cause challenges.

Bounty Oil & Gas NL

Annual Report - 2022

Capital Raising

In October 2021 Bounty raised $2.74 million, before issue expenses, via placement to qualified institutional and
sophisticated investors.

With its ongoing oil revenue Bounty’s cash and current assets at 30 June 2022 exceeded $3.34 million sufficient
to allow it to move forward with its Naccowlah Block oil NFE and development drilling program in 2023 and Surat
Basin development.

More details on current projects are set out below in the Project and Operations Review.

Offshore Gas Project – Gas Exploration Growth Project

PEP 11 - New South Wales Bounty Oil & Gas – 15%

BPH Energy Limited (ASX: BPH) as operator of the PEP 11 Joint Venture is pursuing action in the Federal Court of
Australia to reverse the last Federal Governments unprecedented decision to stop gas exploration on our joint
venture’s multi TCF gas prospect 40km offshore southeast of Newcastle.

Current and 2023 projections of record eastern Australia natural gas prices justify extension of PEP 11 to
proceed with a drill test to test for natural gas at the Baleen Prospect.

In early October 2022 NOPTA as the relevant arm of the Federal Government produced documents behind that
decision. The PEP 11 Joint Venture has called on all of our elected Federal and NSW representatives to show
real leadership and allow Australian companies like BPH and Bounty to have secure titles free from sovereign
risk and be allowed to use their skill and shareholder resources to explore for natural gas in East Australia where
there is a serious gas shortage affecting in particular our strategic East Australia secondary industries and retail
consumers.

At the end of the period the BPH Federal Court proceedings continued and the application was being prepared
for hearing.

However until resolution of the PEP 11 Permit extension the above conditions indicated a material uncertainty
that may affect the ability of Bounty to realise the carrying value of its $546,406 book value for it’s interest in
the Permit and joint venture – see notes to the Financial Statements.

Onshore 2022 Forward Development Plans

See the Directors Report for further 2022 production and revenue details.

Bounty’s petroleum revenues increased to $1.90 million and Bounty emerged from 2022 in a sound position
with its core petroleum acreage and reserves intact. Cash and current assets at 30 June 2022 doubled to $ 3.34
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 2021 and active development was restricted. The Russia – Ukraine War and sanctions on other countries
like Iran lifted the Australian oil price to levels in excess of A$150/bbl. Further; OPEC members have had
difficulty raising production where the world consumes in excess of 90 mmbbls of oil per day.

Bounty is very confident that world oil prices will continue to edge upwards.

SW Queensland – Cooper Basin

ATP 1189P Naccowlah Block – see Maps in Project and Operations Review below.

Bounty Oil & Gas NL

Annual Report - 2022

Oil production from the Santos Limited operated ATP 1189 Naccowlah Block was 13,411 bbls (2021: 18,585 bbls).
Strong oil prices in $A terms increased revenues.

Following its successful 2019-2021 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.

After the end of the period in July 2022 Bounty participated in a very successful appraisal well – Cooroo NW7
which was completed for production.

Bounty has committed to drill several appraisal and NFE targets in 2023 in Naccowlah Block. 2023 focus will be
on the Watson/Watkins complex. 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 2022 was deferred due to Covid-19 and depressed oil prices in 2021 and
Bounty is now planning to commence oil production at Alton in 2023. 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
environmental and related 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 expects to commence gas production
subject to regulatory approvals.

Conclusion

Oil revenue is expected to be $2.0 - $2.5 million in 2023.

Australia confronts the challenge of finding more domestic oil and gas and producing oil reserves. Bounty
maintained its oil reserves in the year to 31 December 2021 and is well placed for additional reserve growth at
end 2022.

Bounty expects resolution of the PEP 11 extension early in 2023 and Bounty is looking forward to participation
in a firm 4 well NFE and development drilling program in Naccowlah Block. Bounty expects growth on its
operated projects which it controls in the Surat Basin.

Bounty will also look for major oil project drilling when the Cerberus Project, W.A. proceeds.

PHILIP F. KELSO
Chief Executive Officer

31 October 2022

Bounty Oil & Gas NL

Annual Report - 2022

PROJECT and OPERATIONS REVIEW

Bounty Projects

Bounty has production and exploration operations in three states within Australia.

Bounty Project Areas

Summary Land Position

Offshore Australia

PEP-11

Cerberus Farmin; W.A. - Farmin to earn 25%

Onshore Australia

Naccowlah SW Queensland

Nappamerri South Australia

Surat Basin Queensland

Rough Range Carnarvon Basin WA

Totals

Equity

Gross Km2

Net Km2

15%

4576

3578

686.5

2009

23.28%

Various

100%

859

180

200

146

7505

1077

This table summarises Bounty’s land position as at 28 September 2022. Bounty’s full schedule of tenements at
that date is included in Additional Information Required by ASX Listing Rules at the end of this Annual Report.

Bounty projects not specifically referred to below in this Project Review are summarised in Bounty’s Quarterly
Activity Reports released to the ASX during 2022 and on Bounty’s website: www.bountyoil.com.

Bounty Oil & Gas NL

Annual Report - 2022

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 3,578 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.

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.

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.

Targets

Bounty is targeting several plays in particular:

• 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.

•

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 sequences 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:

Bounty Oil & Gas NL

Annual Report - 2022

Prospective Resources

Mean
(million
barrels)

1U Low
(million
barrels)

2U Best
(million
barrels)

3U High
(million
barrels)

Geological
Target

Honeybadger Prospect - EP 491

Stork Prospect - EP 475

294

228

102

814

620

Triassic

105

Parrot - EP 491

Gallant - EP 490

Triassic
Cretaceous
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.

262

108

Those targets are shown in the Carnarvon Project Location Map above.

Additional Potential

In addition to the four main prospects (above) there are at least 16 leads and prospects in the Cerberus project
permits which are being evaluated. To assist in de-risking the drilling program reprocessing of the older seismic
data is part completed. Planning for the 3 well program is underway. The wells are planned for 2023/24.

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.

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 40 km southeast of Newcastle.

Bounty Oil & Gas NL

Annual Report - 2022

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

During 2021 the operator, Advent Energy Ltd (Advent), submitted an application to NOPTA for a permit to drill
the Baleen Prospect in PEP 11 and to change the current Permit conditions to this effect.

Preparations were under way to drill an exploration well for gas – Sea Blue 1.

The joint venture also proposed to use the drilling program at Baleen to investigate CCS - Carbon Capture and
Storage (geo-sequestration of CO2 emissions) - opportunities in PEP 11.

Permit operations are now suspended pending resolution of Permit extension.

SW Queensland – Cooper Basin

Production

Bounty’s petroleum production and sales for the year ended 30 June 2022 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

There

The Naccowlah Block covers
2009 km2, comprised of ATP
1189P and the remainder in 26
petroleum
(PL’s) and
leases
applications covering producing
fields.
is significant
infrastructure and
production
pipelines. Bounty’s share of
production from the Naccowlah
Block was 13,411 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 contingent resources to producing oil reserves.

Bounty Oil & Gas NL

Annual Report - 2022

2022 Naccowlah Block Program

Most of the wells drilled in previous periods were placed on production. One well is awaiting tie in to facilities
or further testing.

After the period Bounty participated in the drilling of Cooroo NW-7 in the Cooroo North West Oil Field. The well
reached TD on 4 July and recovered good oil shows in both the Hutton and Birkhead Formations – the primary
targets. It was suspended as a future oil producer.

2023 Naccowlah Block NFE’s

The Operator has committed to drill additional appraisal and NFE wells in the Jackson and Watson areas of the
Naccowlah Block in 2023. Further work includes building additional pipelines in the greater Cooroo/Natan-Bolan-
Corella area of Naccowlah Block to transport the extra production oil from the recent successful drilling campaigns.

Another 12 potential drilling targets have also 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 development areas in the Surat Basin, 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.

Bounty Permit Interests in the Surat Basin, Queensland

South

Permit

Status

Interest

Permit

North
Status

Interest

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

24.75%
100.0%
100.0%

Bounty Oil & Gas NL

Annual Report - 2022

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 substantial attic oil which
could contain 168,000 bbls, and smaller,
possibly unswept parts of the oil pool
amounting to another 70,000 bbl potential.

Bounty refined
the data digitisation and
completed a Well Integrity Management System
in 2022 as preparation for re-commencement of
oil production.

2023 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.

Bounty Oil & Gas NL

Annual Report - 2022

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.

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.

2022 Operations

During 2022 Bounty has achieved in principle access to the main Wallumbilla – Spring Gully pipeline.

Work is underway on taking the gas wells and plant out of care and maintenance and bringing the field back to
production. During 2023 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.

Bounty has a 24.75% interest in PCA 159 Spring Grove Joint Venture. A 2022 engineering assessment indicated
low oil deliverability from Spring Grove.

Bounty Oil & Gas NL

Annual Report - 2022

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

Bounty conducted well integrity monitoring on the Rough Range 1B well in Petroleum Licence L 16 and
commenced 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 targets. 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.

Bounty Oil & Gas NL

Annual Report - 2022

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 2022.

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
S. Saraf

Company Secretary

(Independent Chairman)
(Non-executive Director)
(Non-executive Director, retired on 23 September 2022)
(Executive Director, appointed on 19 September 2022)

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

Operating loss of the group attributable to equity holders for the financial year amounted to $2.49 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
2022

$ million

(2.49)

Consolidated
2021

$ million

(2.90)

Revenue from continuing operations for the period was $1.90 million up 29% on the previous year (2021:
$1.47 million) primarily due to increasing crude oil prices following the economic recovery from the Covid-19
induced economic slowdown in 2020-2021.

The operating loss was determined after taking into account the following material items:

•
•
•
•

Petroleum revenue: (primarily from crude oil sales) of $1.90 million
Direct petroleum operating expenses of $0.96 million
Employee benefits expense of $1.0 million
Non-cash expenses for:

o Write-off charge to oil and gas assets of
o Amortisation and depreciation expenses of

$1.75 million
$0.36 million

Bounty Oil & Gas NL

Annual Report - 2022

Details of drilling activity, exploration and development operations and cash flows for the year ended 30 June
2022 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 2022, 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

2022

2021

$1.90 million
13,411

$1.47 million
18,585

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 oil revenue from Naccowlah Block was $1.90 million for the full-year.
• Bounty’s Naccowlah Block reserves and resources are independently assessed at 31 December each

year.

• Block 2P developed reserves (producing and contingent) at 31 December 2021 were: 3.653 mmbbls.

Bounty held 2% of 2P: 73,000 bbls.

• Bounty’s share of 3P developed reserves in the Block were 106,100 bbls.
• Additional developed volumes are waiting for tie in.

Development drilling was deferred in 2022 due to Covid 19 related quarantine delays and volatile crude prices.
Bounty has however continued to invest in the Block in the period with no new drills but an emphasis on
production optimisation, infrastructure and compliance. After the period in July 2022 Bounty participated in
one materially successful development well – Cooroo NW 7 which was cased for tie in and production. Bounty
will participate in four wells to be drilled in early 2023. Although oil volumes have been lower in 2022;
expected tie ins of new reserves and oil price increases to USD$80 -90/bbl (A$ 135) have provided confidence
for new drills.

All wells except one which were drilled and cased in prior periods are in production.

Additional Later Development Plans and Environmental Authority Plans for the Naccowlah Block were lodged
with the Queensland regulators.

Bounty Oil & Gas NL

Surat Basin; Eastern Queensland

Petroleum Lease 2 Alton

Annual Report - 2022

•

Bounty commenced detailed planning to re-commence oil production in PL 2 Alton in 2022/2023 initially
by producing oil from the Alton Evergreen Reservoirs.

Bounty continued work on the Well Integrity Management System and undertook compliance
monitoring.

At PL 2 Alton Bounty group holds; developed reserves of 167,000 bbls of recoverable oil in the early
Triassic age Basal Evergreen reservoir plus a potential 1.136 million bbls of 2P reserves located in the
three sands of the Boxvale/Evergreen Formations. In terms of oil reserves and resources PL 2 Alton is
considered to be valued far in excess of the net value.

Bounty commenced detailed studies on exploiting proven oil in the Middle Triassic Showgrounds
Formation below the main Evergreen Pool.

There is also an estimated recoverable resource of 186,000 bbls from P50 OOIP of 625,000 bbls in the
Showgrounds Sandstone reservoir at the Eluanbrook Prospect within that part of PL 2 known as the
Kooroon JV.

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.

Carnarvon Basin, Western Australia

Location: Offshore 70 km. East of Barrow Island WA

Titles: EP 475, 490 and 491, TP 27 (Cerberus Permits) totalling 3,759 km2

Background:

On 7 October 2021 Bounty entered a farmin agreement with Coastal Oil and Gas Pty Ltd (“Coastal”) to earn a
25% interest in this shallow water oil project, offshore Carnarvon Basin, West Australia by contributing $500,000
to seismic interpretation and drill planning. Subject to Coastal confirming funding for the balance drilling
expenses Bounty will then contribute $5.5 million to drilling expenses to earn its interest in the four Cerberus
Permits. The project 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 high case prospective resources of over 600 million barrels.

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 Carnarvon Petroleum Ltd in the Browse Basin to the northeast.

Bounty and Coastal are targeting three plays:

• Dorado 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 Locker Shale similar to those
providing the top seal to the Dorado discovery; and
Stag (85 MMbo) and Wandoo (100 MMbo) lookalikes in identical pinchouts in the same Lower
Cretaceous sand package.

Bounty Oil & Gas NL

Activities in 2022

Annual Report - 2022

Bounty contributed $500,000 to seismic interpretation and drill planning and an additional $100,000 to assist
the project. At 30 June 2022 it had contributed $600,000 to the joint account and other expenditure. As a result
on 6 April 2022; Bounty exercised an option to earn additional equity up to a total of 50% of the four Cerberus
Permits by contributing an additional $9 million to drill expenses. Further capital contributions are conditional
upon certain milestones.

During the period, EP 490, EP 491 and TP/27 had extensions of the permit terms and suspensions of the current
work program and terms approved by the West Australia state regulator DMIRS. Extension of E475 is contingent
on firm drill commencement.

Location: Onshore Carnarvon Basin, 40km south of Exmouth WA

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 further seismic surveys and/or an exploration well.

Offshore

Sydney Basin Offshore, New South Wales

PEP 11; Bounty 15% interest:

PEP 11 covers 4,576 sq. km immediately adjacent to the largest gas market in Australia and is a high impact
exploration project. PEP 11 remains one of the most significant untested gas plays in Australia. BPH Energy Ltd
and Bounty as the PEP 11 Joint Venture (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.

In 2021 the PEP 11 JV continued planning to drill Sea Blue 1 to test the Baleen Prospect however in December
2021 the Morrison Federal Government announced that PEP 11 would not be extended.

On 30 March 2022 BPH Energy Ltd and Bounty announced that they had been given notice by NOPTA that it had
refused the PEP 11 JV application initially submitted on 24 December 2019 for a secondary work program
variation and a 24-month suspension of the Permit Year 4 Work Program Commitment and the corresponding
24-month extension of the Permit Term.

BPH Energy Ltd and Bounty had/have statutory legal rights to seek a review of the decision referred to in the
notice under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 and made submissions which
were not accepted by NOPTA however NOPTA has not yet formally announced termination of the Permit and
the PEP 11 JV including Bounty continues to comply with all Permit terms.

BPH Energy Ltd has commenced Federal Court proceedings to have the NOPTA decisions reversed and is still
confident it will be extended as the JV is fully compliant, has paid all rentals and cancellation would be an
unprecedented step. Bounty continues to pay 15% of the Annual rental to NOPTA but is not a party to the
Federal Court action. And record eastern Australia gas prices justify extension of PEP 11 to proceed with a drill
test.

At the end of the period the BPH Federal Court proceedings continued and the application was being prepared
for hearing.

Bounty Oil & Gas NL

Annual Report - 2022

The above conditions indicate a material uncertainty that may affect the ability of Bounty to realise the
carrying value of $546,406 for it’s interest in the PEP 11 exploration permit in the ordinary course of business –
see Note 2(k) Exploration and Evaluation Expenditure in the notes to the Consolidated Financial Statements
comprising the Full-Year Report.

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 2022 on 25 October 2021 the company issued 274.1 million fully paid ordinary
shares at $0.01 per share to raise $2.741 million before issue expenses. Further, 157.05 million bonus options
(exercisable at 2.5 cents expiring 30 November 2025) were allotted on the basis of 1 for 2 ordinary shares
issued.

On 3 December 2021, the company issued loyalty options with the same terms at no cost on the basis of 1 for
10 ordinary shares held at record date to eligible shareholders. No other share issues were completed during
the year.

Dividends Paid or Recommended

No dividends have been paid or declared for payment for the year ended 30 June 2022 and no dividend is
recommended.

Financial Position

At 30 June 2022 current assets were $3.34 million including cash of $3.1 million.

During the financial year the company invested: -

•

$ 0.29 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.

$ 0.80 million in petroleum exploration projects and acquisitions in Australia as summarised in the Review of
Operations above.

The net assets of the group increased marginally to $8.54 million in the year ended to 30 June 2022 as a result of
continuing oil revenue and capital raising offset by non-cash write-offs on petroleum properties. The significant
underlying movements resulted from the following items:

o Equity raised

$2.74 million.

o Amortisation of production assets

$0.26 million.

o Exploration write-offs

$1.75 million.

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.

Bounty Oil & Gas NL

Annual Report - 2022

Contingent liabilities and Contingent Assets

As at the date of this report, there were no contingent assets or liabilities.

There was no litigation against or involving the parent entity Bounty Oil & Gas N.L.

Events 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; except that after the period the group carried out a review of its petroleum
exploration properties. The review led to write-off of $1.74 million being Bounty’s interest in the PL218 Post Permian
JV Wakefield; Cooper Basin, South Australia. This non-cash loss has been recognised in the Group's profit or loss
statement as at 30 June 2022. The write of is reported in the core oil and gas segment (See note 4).

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 and earn a minimum 25% interest in the Cerberus Permits, Carnarvon Basin;
WA and to fund its 15% 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; and

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 and Santos Limited. Its non-operated offshore
exploration operations in PEP 11, NSW are conducted by a competent operator; BPH Energy Limited. Bounty is a
joint operator of the farm in to EP 475, 490 and 491, TP 27 (Cerberus Permits), Western Australia. Each of the
operators and joint operator undertake operations in full compliance with all relevant environmental legislation of
the Commonwealth of Australia and the relevant States. 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 2022, are: -

Bounty Oil & Gas NL

Annual Report - 2022

Graham Reveleigh

— Non-Executive Director

Qualifications

Experience

— BSc. MSc, Fellow Aus IMM.
— 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.

Charles Ross
Qualifications

Experience

— Non-Executive Director

— BSc.

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

Experience

— Non-Executive Director (retired on 23 September 2022)

—

Solicitor Queensland.
Mr Payne is a commercial lawyer with over 35 years’ experience.

Mr Payne has many years of experience in the corporate world. He has been the
chairman of a listed mining exploration company.

Special responsibilities:

Commercial law and Queensland statutory compliance.

Sachin Saraf

Qualifications

Experience

—

Executive Director (appointed on 19 September 2022)

— B.com (Hons.); PGD.Com; CPA.

Mr Saraf has been the Company Secretary and CFO of Bounty group since 2014.
Prior to joining Bounty, he gained significant experience in finance roles with
several ASX listed energy companies since 2007.

Special responsibilities:

Company secretary and CFO.

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

Nil

Bounty Oil & Gas NL

Annual Report - 2022

Mr C. Ross

TSX Listed Companies; Canada:
Goldex Resources Corporation, Norzan Enterprises Ltd.,
Tearlach Resources Limited; Schwabo Capital Corporation;
Four Nines Gold Inc. and Norsement Mining Inc.

1 July 2019 to present

Mr R. Payne

Mr S. Saraf

Nil

Directors shareholdings

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
Mr. S. Saraf

Meetings of Directors/Committees

Fully paid ordinary shares

Share options

22,377,928
3,200,000
1,000,000
-

2,637,792
-
600,000
-

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

7
7
7

The company does not have separate audit or remuneration committees.

Indemnifying Officers or Auditor

During the financial year ended 30 June 2022 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

290,565,681 listed options were issued during the year ending 30 June 2022. Further details are noted on page 7 of
this report. No further options have since been issued up to the date of this report.

Accordingly, at balance date on 30 June 2022 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 2022.

Bounty Oil & Gas NL

Annual Report - 2022

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.

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).

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.

Auditor’s Independence Declaration

The auditor’s independence declaration for the year ended 30 June 2022 has been received and can be found on
Page 16.

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 2022

Bounty Oil & Gas NL

REMUNERATION REPORT

Annual Report - 2022

This remuneration report forms part of the Directors Report for the year ended 30 June 2022 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
•
• Remuneration of directors and key management
•

Key terms and employment contracts

Senior management personnel policy

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
•
S. Saraf

(Chairman)
(Non-Executive Director)
(Non-Executive Director – retired 23 September 2022)
(Executive Director – appointed 19 September 2022)

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.

Bounty Oil & Gas NL

Annual Report - 2022

Non-executive directors’ policy

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 2022.

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.

•
•

Bounty Oil & Gas NL

Annual Report - 2022

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
2022
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)

40,000
10,000
16,667

320,000

-
-
-

-
-
3,333

9,900

-
-
-

40,000
10,000
20,000

329,900

Paid to a personally related entity of the director/executive.

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

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 2022 no share-based payments were made to Key Management Persons.

Bounty Oil & Gas NL

Annual Report - 2022

Fully paid ordinary shares

No fully paid ordinary shares were issued to Key Management Persons during the period.

Share Options

1. 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 2022 or since that date.

2. 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 2022 and no loans were outstanding at the end of the prior period. During the year
the Company repaid $44,000 (net), being part of short-term interest free loan advanced by related entities of
the CEO in previous years. At 30 June 2022 loans outstanding to related entities of the CEO were approximately
$124,000 inclusive of accrued interest charge at 10% p.a. on a $68,000 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

Remuneration paid to directors and key management personnel during the financial year ended 30 June 2022
was not based on performance.

Employee Share Scheme

Bounty Oil & Gas N.L. does not have a current Employee Share Plan (the Plan) approved by shareholders.

Bounty Oil & Gas NL

Annual Report - 2022

Consolidated statement of profit and loss and other comprehensive income
for the year ended 30 June 2022

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)
Exploration expenses write off
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

Total comprehensive loss attributable to owners of the parent

Loss per share

Basic (cents per share)
Diluted (cents per share)

Year-ended

Notes

30-Jun-22
$

30-Jun-21
$

5
5
5

5
14( c)

1,899,571
5,108
34,768
(953,663)
18,596
(1,009,830)
(102,169)
(262,032)
(117,000)
(173,063)
(27,325)
91,101
(1,754,447)
(91,766)
(40,602)

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)

(2,482,753)

(2,907,575)

(2,482,753)

(2,907,575)

(2,482,753)

(2,907,575)

(2,482,753)

(2,907,575)

(2,482,753)

(2,907,575)

(0.20)
(0.20)

(0.28)
(0.28)

The above consolidated statement of comprehensive income should to be read in conjunction with the accompanying
notes.

Bounty Oil & Gas NL

Annual Report - 2022

Consolidated statement of financial position
as at 30 June 2022

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
Accumulated losses
Equity attributable to owners of the parent

Total equity

Notes

30-Jun-22
$

30-Jun-21
$

9
10
11
12

10
14 (b)
14(a)
13

15
16

3,162,884
41,009
54,785
79,626
3,338,304

25,850
2,019,076
5,656,942
798,937

1,410,397
258,792
36,188
45,139
1,750,516

25,850
3,062,158
5,604,161
892,097

8,500,805

9,584,266

11,839,109

11,334,782

1,870,455
103,165
1,973,620

1,421,438
88,043
1,509,481

1,326,310
1,326,310

1,369,963
1,369,963

3,299,930

2,879,444

8,539,179

8,455,338

47,426,757
201,600
(39,089,178)
8,539,179

44,860,163
201,600
(36,606,425)
8,455,338

8,539,179

8,455,338

The above consolidated statement of financial position should to be read in conjunction with the accompanying notes.

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Bounty Oil & Gas NL

Annual Report - 2022

Consolidated statement of cash flows
for the year ended 30 June 2022

Cash flows from operating activities
Receipts from petroleum operations
Payments to suppliers and employees
Interest and dividend received

Net cash (used in) operating activities

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 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

Year-ended

Notes

30-Jun-22
$

30-Jun-21
$

2,327,311
(2,518,258)
1,767

1,643,043
(2,160,124)
1,837

(189,180)

(515,244)

(791,074)
284,488
-
-
(29,378)

(535,964)

(103,139)
(335,915)
(49,327)
(150,000)
-

(638,381)

2,741,000
(174,406)
2,566,594

1,430,000
(10,000)
1,420,000

1,841,450

266,375

1,410,397

1,096,605

(88,963)
3,162,884

47,417
1,410,397

The above consolidated statement of cash flow should be read in conjunction with the accompanying notes.

Bounty Oil & Gas NL

Annual Report - 2022

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

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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 2022. 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 2022.

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 2022.
The Directors have reviewed new accounting standards and interpretations that have been published that are not mandatory for
30 June 2022 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.

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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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

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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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 liability.

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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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 2022, the Group realised a net loss after tax of $2,482,753 (2021: $2,907,575). This was primarily
due to non-cash write-off of $1.74 million to oil and gas assets. The net cash spent on operating activities for the period ended
30 June 2022 was $189,180 (2021: net cash spent $515,244). The Group’s net asset position at 30 June 2022 was $8,539,179 (30
June 2021: $8,455,338) and a cash balance of $3,162,884 (30 June 2021: $1,410,397).

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 implement the above.

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. Other receivables are recognised at amortised cost, less
any allowance for expected credit losses.
Impairment
Allowances for impairment are recognised using an 'expected credit loss' ('ECL') model. Impairment is measured using a 12-
month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which
case the lifetime ECL method is adopted.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by
reducing the carrying amount directly.

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 net
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
lives of the improvements.

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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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.
PEP 11:

On 16 December 2021, BPH Energy (BPH) the listed holding company of the PEP 11 joint venture operator; Asset Energy Pty
Limited advised ASX that the then Prime Minister of Australia had announced that the Federal Government would refuse the
joint venture's applications to extend the PEP 11 Permit for gas exploration in the offshore Sydney Basin. Bounty Oil & Gas NL
(Bounty) as a JV participant received notification of such refusal from the National Offshore Petroleum Title Authority (NOPTA).

On 30 March 2022, BPH and Bounty as the PEP 11 Joint Venture announced to ASX that they had been given notice by NOPTA to
the effect that NOPTA has refused the Joint Venture Application initially submitted on 24 December 2019 for a secondary work
program variation and a 24-month suspension of the Permit Year 4 Work Program Commitment and to grant a corresponding 24-
month extension of the Permit Term.

The operator; Asset Energy Pty Ltd (Asset) has applied to the Federal Court of Australia pursuant to section 5 of the
Administrative Decisions (Judicial Review) Act 1977 (Cth) and section 39B of the Judiciary Act 1903 (Cth) to review the decision
of the Commonwealth-New South Wales Offshore Petroleum Joint Authority (Joint Authority), constituted under section 56 of
the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) (Act), to refuse to vary and suspend the conditions of the
PEP 11 Permit , pursuant to section 264(2) of the Act, and to refuse to extend the term of the PEP 11 Permit, pursuant to section
265 of the Act.

Asset has lodged that application as operator for and on behalf of the PEP11 Joint Venture Partners, Bounty and Asset. On 11
August 2022 the Federal Court of Australia made discovery orders in respect of this application. The court has set a date for a
hearing in March 2023.
Under the provisions of the Offshore Petroleum and Greenhouse Gas Storage Act 2006, the existing permit will continue until
final decisions are made and the JV is compliant with its conditions.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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.
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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022
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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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 or
any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at
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.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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 2(l).
During the year, the group carried out a review of its petroleum exploration properties. The review led to Write-off of $1.74
million on PL218 Wakefield. Further commentary on this 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-22
$

30-Jun-21
$

1,899,571

1,470,219

30-Jun-22
$
634,989
(1,754,447)

30-Jun-21
$
101,777
(2,010,904)

5,108
1,904,679

12,786
1,483,005

5,108
(1,114,350)

125,869
(1,494,272)
(2,482,753)

12,786
(1,896,341)

54,219
(1,065,453)
(2,907,575)

Segment revenue
Revenue reported above represents revenue/income generated from external sources. There were no intersegment sales
during the period (2021: 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 $1.90 million (2021: $1.47 million) are revenues of
approximately $1.26 million (2021: $0.98 million) which arose from sales to the Group’s largest customer. The revenue from the
Group’s second largest customer was approximately $0.64 million (2021: $0.49 million). No other single customer contributed
10% or more to the Groups revenue for both 2022 and 2021.

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-22
$
350,679
-
-

13,522
364,201

30-Jun-21
$
441,102
-
-

8,113
449,215

30-Jun-22
$
206,227
117,596
711,365

1,035,188

30-Jun-21
$
660,146
112,131
73,509

49,327
895,113

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022
4. Segment Information (continued)

Core Oil & Gas Segment
Exploration projects
Total

Impairment losses/
Write-Off expenses

30-Jun-22
$

1,754,447
1,754,447

30-Jun-21
$

2,010,904
2,010,904

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-22
$

4,589,382
1,887,286
2,019,076

30-Jun-21
$

4,954,629
1,769,690
3,062,158

30-Jun-22
$

2,398,661
71,171
38,836

30-Jun-21
$

2,075,596
71,171
88,531

79,626
3,263,739
11,839,109

45,139
1,503,166
11,334,782

-
791,262
3,299,930

-
644,146
2,879,444

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)
Realised gain
Unrealised gain/(loss)
Total investment income

Other income:
Interest and dividend income
Government Assistance – COVID-19 related (i)
Total other income

Gains/(losses) on foreign currency

Total revenue

Revenue

Carrying amounts of non
current assets

30-Jun-22
$

2,030,548
2,030,548

30-Jun-21
$

1,537,224
1,537,224

30-Jun-22
$

8,500,805
8,500,805

30-Jun-21
$

9,584,266
9,584,266

30-Jun-22
$

1,878,786
20,785
1,899,571

30-Jun-21
$

1,446,058
24,161
1,470,219

45,717
(40,608)
5,108

1,768
33,000
34,768

91,101

-
12,786
12,786

2,265
104,432
106,697

(52,478)

2,030,548

1,537,224

(i) The Company was eligible for, applied for and received COVID-19 related grants from the State of New South Wales due to a
significant reduction in petroleum revenues during the financial year.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

6. Employee benefit expense

Directors fees
Consultancy fees - Internal
Wages & salaries
Other employee benefit expenses
Total Employee benefit expense

30-Jun-22
$
70,000
320,000
377,670
242,160
1,009,830

30-Jun-21
$
83,471
320,000
219,817
52,888
676,176

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 25% (2021 26%)
Consolidated group
Add: tax effect of non deductible expenses
Less: tax effect of expenditure claimed as deduction

$
(620,688)
477,155
(281,516)

$
(755,970)
725,116
(156,613)

Tax effect of Unused tax losses not recognised as deferred tax asset

(425,049)

(187,467)

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)

(0.20)
(0.20)

(0.28)
(0.28)

Net (loss)/profit used in the calculation of basic and diluted earnings/(loss) per share

(2,482,753)

(2,907,575)

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

1,370,500,982

1,096,400,982

$
66,594
3,096,290
3,162,884

$
66,112
1,344,285
1,410,397

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

10. Trade and other receivables

Current
Trade and other receivables
Prepayments
Other receivables
Total current receivables
Non-current
Other receivables
Total non-current 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-22
$

2,083
18,926
20,000
41,009

25,850
25,850

54,785
54,785

30-Jun-21
$
244,000
14,792
-
258,792

25,850
25,850

36,188
36,188

79,626
79,626

45,139
45,139

1,406,582
(607,645)

1,397,572
(505,475)

798,937

892,097

892,097
9,010
(102,169)
798,937

878,923
106,047
(92,872)
892,097

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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

Movement in carrying amounts of production & development assets:

Opening balance at the beginning of the year
Additions
Movement in rehabilitation
Amortisation of production assets
Carrying amount at the end of the year

30-Jun-22

30-Jun-21

3,749,894
(2,553,992)
4,525,963
(2,518,608)

3,688,794
(2,325,277)
4,389,846
(2,518,608)

566,399

599,716

1,887,286
5,656,942

1,769,690
5,604,161

5,604,161
314,813
(33,317)
(228,715)
5,656,942

5,243,330
715,557
(33,317)
(321,409)
5,604,161

(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 2022, Bounty’s participating
interest the PEL 218 Post Permian JV , South Australia (PEL 218 JV) was fully written-off as a result of Bounty and all other
participants terminating the PEL 218 JV. 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.

2022-23
$80.00
$0.700
4.0%
7.0%

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

Movement in carrying amounts of exploration and evaluation assets:

Opening balance at the beginning of the year
Additions
Write-off of Exploration and evaluation asset (see i above)
Carrying amount at the end of the year

2024+
$70.00
$0.73
3.0%
6.0%

2,019,076
2,019,076

3,062,158
3,062,158

3,062,158
711,365
(1,754,447)
2,019,076

4,999,553
73,509
(2,010,904)
3,062,158

(c): Impairment and write-off of oil and gas properties

PEL 218 Post Permian JV , SA
ATP 2028

15. Trade and other payables
Current
Trade payables
Amounts owing to Joint Operations
GST, FBT, PAYG & superannuation liability
Total trade and other payables

1,754,447

2,010,904

1,125,669
649,739
95,047
1,870,455

915,869
464,366
41,203
1,421,438

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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
De-recognition of rehabilitation provisions on disposal of petroleum asset
Net provisions recognised/(expensed)
Balance at the end of the period

30-Jun-22

30-Jun-21

$
103,165

35,475
1,290,835
1,326,310

1,369,963
27,325
(51,708)
(19,270)
1,326,310

88,043

31,817
1,338,146
1,369,963

1,354,185
27,516
-
(11,738)
1,369,963

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 2022 was 3%, 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
1,370,500,982 fully paid ordinary shares (2021: 1,096,400,982)
Nil options transferred to share option reserve on expiry (2021: Nil)

(a) Movement in fully paid ordinary shares
Balance at beginning of year
Shares issued during the year
Balance at end of year

(b) Movement in listed options
Balance at beginning of year

Issued during the year ($0.025 exercise price expiry 30 Nov 2025)
Balance at end of year

47,426,757
201,600
47,628,357

44,860,163
201,600
45,061,763

No. of Shares
1,096,400,982
274,100,000
1,370,500,982

No. of Shares
1,096,400,982

1,096,400,982

290,565,681
290,565,681

-
-

18. Reconciliation of cash flow from continuing operations
Reconciliation of Cash Flow from continuing operations with profit/(loss) after income tax.
Loss from continuing operations after income tax

(2,482,753)

(2,907,575)

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
Write-off of exploration assets
Accrued interest expense
Change in trade and other receivables
Loss on sale of marketable financial assets
Change in inventory
Change in rehabilitation obligation
Change in trade & other payables
Net Cash from continuing operations

388,584
40,608
88,963
23,177
1,754,447
6,389
217,783
(45,717)
(18,597)
(24,383)
(137,681)
(189,180)

423,316
(12,786)
(58,886)
42,486
2,010,904
5,795
40,802
-
33,320
27,516
(120,136)
(515,244)

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

19. Share based payments

No share based payment compensation was granted to directors or senior management during the financial year ended 30 th June
2022 and there was Nil expensed (2021: 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-22
$

30-Jun-21
$

391,500
-
391,500

403,535
-
403,535

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 and options in Bounty Oil and Gas N.L. held, directly,
indirectly or beneficially, by each key management person, including related parties, are as follows:

2022

Directors
G Reveleigh

R Payne

C Ross

Executives
P Kelso

2021
Directors
G Reveleigh
R Payne
C Ross
Executives
P Kelso

Security

Type
Shares
Options
Shares
Options
Shares
Options

Sales

Purchases

Received
other

Received on
exercise of
Options

Balance at
Start of the
Year
21,377,928
- - - 22,377,928
1,000,000
2,637,792
- 2,637,792
- - - 1,000,000
- 1,000,000
600,000
- 600,000
3,200,000
- - - - 3,200,000
- - - - - -

Held at the end
of Year

Shares
Options

34,287,492
1,900,000
- 3,241,513

-
-

- 36,187,492
- 3,241,513

1,000,000

21,377,928
21,377,928
- - - - - -
- - - - 3,200,000
3,200,000

- - 1,000,000

37,987,492 300,000

4,000,000

34,287,492

No shares were granted to key management personnel during the financial year or during the previous financial year.
During the financial year, new series of listed options were alloted as part of Placement and Bonus issue for nil cost with exercise
price of $0.025 expiring 30 November 2025. There were no option on issue in 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 2022 and no loans were outstanding at the end of the prior period. During the year the Company repaid $44,000 (net), being
part of short term interest free loan advanced by related entities of the CEO in previous years. At 30 June 2022 short ter mloans
outstanding to related entities of the CEO were approximately $124,000 inclusive of accrued interest charge at 10% p.a. on a
$68,000 portion of the advance, for the financial year.

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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,
$1,500 was paid for legal fee, $8,400 was paid for site management services, and $81,500 was paid for office rent to firms in
which Mr. P. Kelso is a director or principal.

Aggregate amounts of each of the above types of other transactions with entities associated with key management personnel of
Bounty Oil & Gas NL:

Legal fee
Site management services for PL2
Rent of office

21. Commitments

30-Jun-22
$

30-Jun-21
$

1,500
8,400
81,500
91,400

-
8,400
17,137
25,537

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:

$
883,000
2,295,800
3,178,800

$
842,000
1,852,400
2,694,400

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 (2021: nil).

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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

30-Jun-22

30-Jun-21

$
3,162,884
66,859
79,626
3,309,369

$
1,410,397
284,642
45,139
1,740,178

(1,870,455)
(1,870,455)

(1,421,438)
(1,421,438)

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-22
$
3,162,884
66,859
3,229,743

30-Jun-21
$
1,410,397
284,642
1,695,039

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-22

30-Jun-21

Gross $

Impairment $

Gross $

Impairment $

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.

- - -
- 258,792
41,009

-
-

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).

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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-22
$

30-Jun-21
$

Financial assets at fair value
through profit or loss (see
note 12)

Quoted bid prices
in an active market

Level 1

79,626

45,139

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
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.

Class of shares
Ordinary
Ordinary
Ordinary

Australia
Australia
Australia

Equity holding % (1)
100
100
100
100
100
100

Country of Incorporation

30-Jun-22

30-Jun-21

(1) The proportion of ownership interest is equal to the proportion of voting power held.

25. Interest in joint operations
Set out below are the joint arrangements of the Group as at 30 June 2022, which in the opinion of the directors are
material to the Group:
Name of the joint
arrangement
ATP 1189P Naccowlah block
PEP11

Principal place of
business
Adelaide, Australia
Perth, Australia

Measurement
Method
Proportionate
Proportionate

Principal
activity
Production
Exploration

2%
15%

Ownership interest (%)

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

30-Jun-22
$

1,899,571
(1,264,582)
634,989

30-Jun-21
$

1,470,219
(1,368,442)
101,777

23,073
54,784

244,040
36,188

533,470
1,762,301
2,373,628

649,739
1,029,334
1,679,073

582,294
1,963,233
2,825,755

464,366
1,042,381
1,506,747

694,555

1,319,008

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

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 2022, 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

3,250,723
11,148,884
14,399,607

1,670,459
12,311,115
13,981,574

30-Jun-22
$

30-Jun-21
$

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.

1,273,485
1,064,809
2,338,294
12,061,313

938,756
1,123,893
2,062,649
11,918,925

47,426,757
201,600
(35,567,044)
12,061,313

44,860,163
201,600
(33,142,837)
11,918,926

(2,424,206)

(841,675)
-
(841,675)

606,000
1,575,600
2,181,600

730,000
1,606,000
2,336,000

Bounty Oil & Gas NL

Annual Report - 2022

Notes to the consolidated financial statements
for the year ended 30 June 2022

27. Contingent liabilities and contingent assets

As at the date of this report, there were no contingent assets or liabilities.
There was no litigation against or involving the parent entity Bounty Oil & Gas N.L.

28. Events occurring after the reporting period

29. Auditors remuneration

Remuneration of the auditors of the Company for:
- Auditing or reviewing the financial reports for year
Total

30-Jun-22

30-Jun-21

$
34,000
34,000

$
32,010
32,010

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

Bounty Oil & Gas NL

DIRECTORS’ DECLARATION

Annual Report - 2022

a) The directors of Bounty Oil and Gas NL (“the Company”) declare that the financial statements and notes, as set out on pages 17
to 43 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 2022 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 2022

Bounty Oil & Gas NL

Annual Report - 2022

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 26 September 2022:

a) Analysis of numbers of holders of fully paid ordinary shares:

No. of Securities

No. of Shareholders

1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and above

229
114
377
2,222

1,428
4,370

b) Twenty largest holders of quoted equity securities at 26 September 2022:

Ordinary Shareholders

Fully paid
number

GH Corporate Services Pty Ltd

David Alan McSeveny

Comadvance Pty Ltd.
Barry Sheedy & Associates Pty
Ltd.

Bang Vi Khanh

Red Kite Capital Inc.

Zanamere Pty Ltd.

BNP Paribas Nominees Pty Ltd.

Tri-Ex Holdings Pty Ltd.

Hoeksema Superfund

WH Ave LLC

Kestrel Petroleum Pty Ltd.

Citicorp Nominees Pty Ltd.

Jordan Vujic

Luye Li

Sophie Piper Super Fund

C G Consortium Pty Ltd

Airen Youhanna

Manor Developments S/F

Milica Vujic

31,983,061

31,963,687

31,294,403

27,893,700

27,600,000

27,022,000

22,377,928

21,495,923

19,177,778

18,600,000

18,000,000

15,175,000

12,163,067

12,095,572

9,340,767

9,078,758

9,000,000

8,930,000

8,800,000

7,642,888

2.33%

2.28%

2.04%

2.01%

1.97%

1.63%

1.57%

1.40%

1.36%

1.31%

1.11%

0.89%

0.88%

0.68%

0.66%

0.65%

0.64%

0.56%

Total Top 20 Holders

369,634,532

26.97%

c) Options as at 26 September 2022:

there were 290,565,681 listed and quoted options ($0.025 exercise price, expiring 30
November 2025) over ordinary shares.

ii)

there were no unlisted options over ordinary shares.

Bounty Oil & Gas NL

Annual Report - 2022

Substantial Shareholders

As at 26 September 2022 there were no substantial shareholders as disclosed in substantial
shareholders notices given to the company.

Issued Shares and Distribution

The total number of fully paid ordinary shares on issue on 26 September 2022 was 1,370,500,982.

There were 2,397 holders of less than a marketable parcel of ordinary shares, totalling 54,137,075
shares being 3.95% of number of fully paid ordinary shares on issue.

The percentage of the total holding of the 20 largest shareholders of ordinary shares was 25.7%
of issued capital.

Stock Exchange Listing

Quotation has been granted for all the ordinary shares of the company under the code BUY, and for
quoted options under the code BUYO on the Australian Securities Exchange (ASX).

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 Fellow 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.

Secretary

The name of the Secretary of the company is Mr. Sachin Saraf.

Share Buy Back

There is no current on market share buy-back.

Bounty Oil & Gas NL

Annual Report - 2022

Schedule of Petroleum Tenements – 28 September 2022

Permit

Operator

Basin

Expires

Status

Interest

Offshore New South Wales

Gross
Km2

Net
Km2

PEP-11

Asset2

Sydney

12/02/2021

Granted –see
note 11

15%

4576.4

686.5

Offshore Western Australia

EP 475

EP490

EP491

TP/27

Coastal10
Coastal10
Coastal10
Coastal10

Onshore SW Queensland

ATP 1189 N

PL 1026

Santos4
Santos4

Carnarvon 27/05/2023 Granted

Carnarvon 27/05/2025 Granted

Cooper

31/12/2022 Granted

8/07/2024 Granted

PL 1047

Santos4

Eromanga

PL 1060

Santos4

Eromanga

PL 1093

Santos4

Cooper

Under
Application
Under
Application
Under
Application

Eromanga

15/12/2019 Renewing

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

29/02/2030 Granted

Eromanga

29/02/2030 Granted

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 Renewing

Eromanga

23/11/2022 Renewing

Eromanga

23/11/2028 Granted

Eromanga

23/11/2022 Granted

Eromanga

6/09/2020

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 1118
PL 76/
PL 1122

PL 77

PL 78

PL 79/PL
1078
PL 82/PL
1079
PL 87/PL
1080

Santos4

Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4
Santos4

Santos4

Santos4
Santos4

Santos4

25% FI9
25% FI9
25% FI9
25% FI9

562.3

1411.2

1447.2

338.1

314.3

18.3

31.8

6.3

0.4

0.6

127.8

2.6

45.8

0.9

12.2

27.5

18.3

27.5

234.6

200.9

256

12.2

136.5

60.9

9.2

12.2

64.7

39.5

12.2

12.1

9.2

0.2

0.6

0.4

0.6

4.7

4.0

5.1

0.2

2.7

1.2

0.2

1.3

0.8

0.2

Eromanga

6/09/2020

Renewing

18.3

0.4

Eromanga

6/09/2020

Renewing

27.5

0.6

Bounty Oil & Gas NL

Annual Report - 2022

Onshore Surat Basin Queensland

PL 2

PL 2A

PL 2 B

PL 2 C

PCA 159

ATP 1190 SG

PL 441
PPL588

Bounty1
Bounty1
Bounty1
Bounty1
AGL6
AGL6
Ausam5
Ausam5

Surat

Onshore South Australia (Post 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

Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7
Beach7

Onshore Western Australia

Cooper

31/12/2032 Granted

17/12/2022 Granted

28/02/2023 Granted

4/06/2031 Granted

12/07/2039 Granted

28/04/2024 Granted

100%

81.75%

100%

24.748%

100%

23.28%

9.4

42.5

45.6

36.1

15.3

21.4

90.2

97.5

99.5

91.3

96.9

99.1

90.2

96.9

97.4

9.4

34.7

37.3

36.1

3.8

21.4

21.0

22.7

23.2

21.3

22.6

23.1

21.0

22.6

22.7

L 16

Rough Range3

Carnarvon 23/09/2031 Granted

90%

79.5

Total

11,478.2 1154.3

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 (Queensland)

9. Bounty Oil & Gas NL farm in to earn 25% with option to earn up to 50%

10. Coastal Oil & Gas Pty Ltd

11.Subject to Federal Court proceedings to reverse NOPTA decision not to consent to extension
of Permit term.

Bounty Oil & Gas NL

Annual Report - 2022

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

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

Bounty Oil & Gas NL

Annual Report - 2022

Reservoir

Seal, Sealing Formation

Seismic Survey

Spud
Stratigraphic Trap

Structure

Sub-basin
TCF/Tcf
TVDS
Up-dip

A subsurface volume of rock of sufficient porosity and permeability to permit the
accumulation of crude oil and natural gas under adequate trap conditions
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

Bounty Oil & Gas NL

Annual Report - 2022

CORPORATE DIRECTORY

Board of Directors

Share Registry

Graham C. Reveleigh (Independent Chairman)
Charles Ross (Non-Executive Director)
Sachin Saraf (Executive Director)

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