Bounty Oil & Gas NL
Annual Report 2023

Plain-text annual report

A N N U A L R E P O RT Your Logo 2 0 2 3 Bounty is an Australian ASX listed group with significant exposure to existing Australian oil production and hydrocarbon provinces with proved producing oil reserves and proximity to markets in the east (PEP 11, Sydney Basin gas) and the west coast (Cerberus + Rough Range, Carnarvon Basin, WA oil). As oil prices strengthen to + US $ 90 in the face of disinvestment by majors and major market disruptions in Europe, Bounty has material growth potential through oil and natural gas. KE Y OU TCOM ES/OU TLOOK Full Year 2023 - Results (cid:105) Group petroleum revenue for the year marginally down to $1.77 million (2022: $1.90 million) from Queensland oil sales, however crude oil prices stronger. (cid:105) Cash and current assets at 30 June 2023 $1.23 million with zero debt. (cid:105) Bounty continued oil production from Naccowlah Block exploiting the additional reserves proved by development and NFE drills in 2022/2023. (cid:105) Operating loss of $0.44 million (2022: $0.36 million) before non-cash expenses. 2024 OU TLOOK (cid:105) Recent very successful NFE wells at Watkins North 1 and 2 Naccowlah Block are being tied in and with oil prices currently above A$135/ bbl Bounty’s gross oil revenue will increase to approximately $2.4 million in 2024. (cid:105) Bounty is preparing to produce additional oil from its operated Surat Basin projects. (cid:105) PEP 11 Joint Venture: Following success in the Federal Court of Australia the PEP 11 joint venture is waiting for NOPTA approval of extension of PEP 11 and monitoring offshore rig availability to test gas at Baleen Prospect. Bounty Oil & Gas NL Annual Report - 2023 TABLE OF CONTENTS Key Outcomes and 2024 Outlook Chairman’s Review CEO’s Review Project and Operations Review Corporate Governance Statement Page Inside Cover 2 4 - 7 8 - 13 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 27 28 29 30 31 32 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 55 56 - 59 60 - 61 62 - 63 64 - 65 66 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 1 Bounty Oil & Gas NL Annual Report - 2023 CHAIRMAN’S REVIEW Dear Shareholders There have been two very significant events for Bounty during the year. They are the judgment by the Federal Court of Australia to overturn the decision of the previous Prime Minister to cancel the PEP 11 offshore Permit, and the successful drilling of the Watkins North oil wells in the Naccowlah block in Western Queensland. The Federal Court decision on 14 February 2023 paved the way for the approval by NOPTA for the extension of PEP 11 over the Sydney Basin offshore from Newcastle in NSW. Bounty awaits the administra(cid:415)ve processing to be completed so drilling of the Baleen Prospect off Newcastle can test its poten(cid:415)al major gas resource. Major gas shortages in Australia are likely in 2024 and beyond. We look forward to ac(cid:415)on on PEP 11. Drilling the Watkins North 2 well (Bounty 10%) in the Naccowlah block proved excellent reserves of light sweet crude, and this coupled with the success in Watkins North 1 well (Bounty 2%), and current strong oil prices will add around AU$1 million to the company’s revenue in 2024. These wells are being (cid:415)ed in for immediate produc(cid:415)on. While the revenue result for 2023 was slightly down on the previous year, the con(cid:415)nuing high price of crude oil on interna(cid:415)onal markets and the low AUD$ exchange rate against the US$ will result in increased income from oil produced, par(cid:415)cularly as the produc(cid:415)on from the new wells in Naccowlah block comes on stream. I wish to record my sincere thanks to my fellow Board members and execu(cid:415)ves for their con(cid:415)nuing hard work developing Bounty’s petroleum assets to benefit the Australian industry. I also wish to thank our shareholders for their con(cid:415)nuing support and pa(cid:415)ence during the year. Graham Reveleigh Chairman 27 October 2023 2 Bounty Oil & Gas NL Annual Report - 2023 Schlumberger SLR 188 Rig Drilling at Watkins North, Naccowlah Block – August 2023 3 Bounty Oil & Gas NL Annual Report - 2023 CEO’S REVIEW Highlights for the Financial Year: • • • • • • • • Bounty participated in three successful NFE and development oil wells in Naccowlah Block recording very significant discoveries in Watkins North 1 and 2. Continued oil production from Naccowlah Block exploited the additional reserves proved by development and NFE drills in 2019/2022. Cash and current assets at 30 June 2023 were to $1.50 million with zero debt. Petroleum revenue was marginally lower; down 29% to $1.77 million however crude oil prices stronger. Operating loss of $0.44 million (2022: $0.36 million) before non-cash expenses comprised of $2.45 million for amortisation of producing oil assets and a permanent impairment expense. Bounty’s proven oil & gas resources in the Cooper and Surat Basins in Queensland provide a platform for continuing and increasing revenue growth. Bounty is participating in oil development and NFE drills in 2023/24 in the Cooper and Surat Basins. PEP 11 Joint Venture waiting title continuation following successful action in the Federal Court of Australia. Australian Onshore Review and 2024 Forward Development Plans See the Directors Report below for 2023 production and revenue details and the Project and Operations Review for more details on current projects. Bounty emerged from 2023 in a sound position with its core petroleum acreage and reserves intact. Bounty anticipates continuing oil production from Naccowlah Block with additions from the recent excellent Birkhead and Westbourne zone discoveries at Watkins North supported by strong oil prices of around A$135/bbl. The Russia – Ukraine War and sanctions on other countries like Iran lifted the Australian oil price to levels at one point to in excess of A$150/bbl and they are currently A$135/bbl. OPEC Plus led by Saudi Arabia and Russia have curtailed production however the world consumes in excess of 90 mmbbls of oil per day and oil prices can only increase as production declines worldwide; start to bight. Bounty is very confident that world oil prices will continue to edge upwards. Bounty Diversifying During the financial year Bounty examined a number of petroleum, production, exploration and other resource opportunities as a means to diversify while waiting for NOPTA’s decision on title continuation at its PEP 11 Sydney Basin Gas Project. Bounty will also consider overseas projects that fit its criteria. Onshore Projects Oil Business SW Queensland – Cooper Basin ATP 1189P Naccowlah Block – see Directors Report and Project and Operations Review below. Oil production from the Santos Limited operated ATP 1189 Naccowlah Block was 10,792 bbls (2022: 13,411 bbls). Although volumes sold were lower strong oil prices in $A terms supported revenue. Following our successful 2019-2021 oil appraisal program in the Block; the operator, Santos Limited, continued to progressively tie in wells with new pipelines and oil production infrastructure and continued an appraisal and NFE drilling program based on blanket 3D seismic data. In September 2023 Bounty announced completion of the 2022 - 2023 oil drilling program. The program was completed using the Schlumberger SLR 188 Rig operated by Santos Limited (see photo above). 4 Bounty Oil & Gas NL Annual Report - 2023 Results of the July 2022 – August 2023 campaign are summarised below: Date Well Bounty Interest % Formation/Oil recoveries Result July 2022 Cooroo NW 7 2% January 2023 Tequila 2 2% August 2023 Watkins North 1 2 % August 2023 Watkins North 2 10 % August 2023 Walter 1 2 % Good oil shows in Hutton and Birkhead/GC 30 Formation sands Modest shows in Murta/Birkhead sands Good oil in middle Birkhead/GC 30 Formation sands Good oil in middle Birkhead/GC 30 Formation sands Fair to poor oil shows in Birkhead/GC 30 Formation sands C&S as potential oil producer - Online P&A C&S as potential oil producer C&S as potential oil producer P&A Abbreviations C&S P&A well cased and suspended for oil production well plugged and abandoned Two vertical near field exploration wells were drilled north of the Watkins Field, namely Watkins North 1 and Watkins North 2 in Petroleum Lease 35. Good oil shows were recorded in mud logs in both wells over the target Formations and logging runs and pressure tests established good reservoir in the oil productive middle Birkhead/GC 30 horizon. The two wells were cased ready for completion, tie in through the Watson Field oil satellite and production. These two additional discoveries further extend the productive middle Birkhead/GC 30 sands 2 km north of the Watkins Field and have further developed the Watkins/Watson North complex. Walter 1 seeking to extend the Watson West Field further west encountered weak oil shows at the target Birkhead/GC 30 horizon and after logging was P&A’d. Bounty anticipates that following project reviews the operator will undertake further exploration/appraisal drilling in Naccowlah Block in 2024. Oil Production/Revenue Increases As a result of the Watkins North 2023 campaign Bounty anticipates a material increase in its share of 2P/3P oil reserves/resources in the Block and increased production volumes. Once tied in; the two Watkins North wells combined are anticipated to add in excess of AUD$1 million per annum to Bounty’s oil revenue. SE Queensland – Surat Basin Petroleum Lease 2 Alton (PL 2), PL 46 Fairymount – see Maps in Project and Operations Review below. Commencement of oil production in 2022 was deferred due to Covid related labour shortages and depressed oil prices in 2021. Bounty is now planning to commence oil production at Alton in 2024. This is expected to generate additional oil 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. Post balance date Bounty acquired Petroleum Lease 46 adjoining PL 2 Alton and is planning workovers which will provide additional light oil production and oil processing. 5 Bounty Oil & Gas NL Annual Report - 2023 Australian Offshore Review – Major Gas Exploration Growth Projects PEP 11 - Offshore Sydney Basin, New South Wales – Bounty 15% A detailed statement on the status of this project is included in the Director’s Report and the Project and Operations Review below. Background PEP 11 covers 4,576 sq. km immediately adjacent to the largest gas market in Australia and is a high impact exploration project. (See Project and Operations Review below). Following the Federal Court of Australia’s decision to Order the Joint Authority to reconsider the joint venture’s applications for the variation and suspension of the work program conditions and related extension of PEP 11; Bounty and Asset Energy (the operator) have filed additional material with NOPTA in support of the applications including a commitment to drill an exploration well for gas most likely the proposed Seablue 1 well on the Baleen Prospect. In the meantime, work continued in securing a rig and contractors in preparation for drilling of Seablue 1. On 14 July 2023; the Hon Chris Bowen, Minister for Climate Change and Energy, gazetted/designated an area off the Hunter Region of NSW as suitable for offshore wind energy development and that it would be open for industry to develop wind farms (the Declared Area). The Declared Area is offshore from Newcastle and Port Stephens in Commonwealth waters beyond the 3 Mile limit. At its closest point the Declared Area is 25 km from the Baleen Prospect and not expected to have any impact on the Baleen Prospect or other gas prospective areas in PEP 11 (see map below). Map showing PEP-11 Permit, with declared wind energy development area (Declared Area) Location of Planned Seablue-1 well and Area of highest prospectivity in PEP-11 6 Bounty Oil & Gas NL Annual Report - 2023 Australian Offshore Review - Cerberus Project Offshore Carnarvon Basin WA EP 475, 490, 491 and TP/27 - Bounty Earning 25% The four Cerberus Permits; EP 475, 490, 491 and TP/27 offer a large number of oil and gas prospects and leads, many drill ready, with high case prospective resources of over 600 million barrels. The permits are located in shallow water, offshore Carnarvon Basin, West Australia. The Project and Operations Review below discusses the play models. At 30 June 2023 Bounty had advanced and incurred $722,000 towards the joint account and other expenditure via management resources under its farmin agreement with Coastal Oil and Gas Pty Ltd (“Coastal”). This investment entitled Bounty to earn a 25% interest in the Cerberus Permits by contributing $5.5 million as a share of drill expenses. 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. All drill expense contributions by Bounty are conditional upon Coastal funding its share of drilling expenses. Cerberus Project - Main Points During the year Bounty assisted in obtaining an extension of the permit term and suspensions of the current work programs for EP 475 which was approved by the West Australia state regulator; contingent on a firm drill commencement by May 2024.    The Farmin Agreement (FIA) with Coastal continues and both the FIA and notice of option exercise have been registered by Bounty against the key Cerberus Permits. Bounty continued minor expenditure on this project during the period while Coastal and Bounty discussed alternatives to fund drilling. 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 is in a state of flux due to uncertainty on Government policy and Aboriginal Native Title issues. Conclusion Oil revenue is expected to be $2.0 - $2.5 million in 2024. Australia confronts the challenge of finding more domestic oil and gas and producing those reserves. Bounty maintained its oil reserves in the year to 31 December 2022 and with the Watkins North discoveries is well placed for additional reserve growth at the end of 2023. Bounty expects resolution of the PEP 11 extension later in 2023 and Bounty is looking forward to participation in further NFE and development drilling programs in Naccowlah Block: The joint venture has at least 9 sites for additional appraisal and NFE wells in the Jackson and Watson areas of the Block. Bounty also expects oil production growth from its operated projects which it controls in the Surat Basin. Bounty will also look to major oil and gas project drilling in Western Australia when Coastal progresses funding for the Cerberus Project drill expenses. PHILIP F. KELSO Chief Executive Officer 27 October 2023 7 Bounty Oil & Gas NL Annual Report - 2023 PROJECT AND OPERATIONS REVIEW Bounty Projects Bounty has production and exploration operations in three states within Australia. Bounty Project Areas Summary Land Position Offshore (Commonwealth) PEP-11 Carnarvon Basin WA Cerberus Rough Range Onshore QLD Equity 15% 25%1 100% Gross Km2 4,576 3,759 80 Naccowlah SW Queensland 2% 1,794 Surat Basin Queensland Various 149 Net Km2 686 940 80 36 121 Totals 10,358 1,863 1. Earning 25% subject to $5 million contribution as share of drilling costs with option to 50% This table summarises Bounty’s land position as at 30 June 2023. 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 2023 and on Bounty’s website: www.bountyoil.com. 8 Bounty Oil & Gas NL Annual Report - 2023 SW Queensland – Cooper Basin Production Bounty’s petroleum production and sales for the year ended 30 June 2023 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%; 10% in Watkins North 2 Location: Surrounding Jackson, Naccowlah and Watson Oilfields Background by the three Jackson, applications The Naccowlah Block consists ATP 1189 for (containing Production Licences which are under consideration Queensland Government) and 23 production Licences totalling 1,794 square kilometres. The block largest onshore the contains oilfield in Australia, and Bounty currently enjoys production of around 30 bopd from its interest. There is significant production infrastructure and pipelines. Bounty’s share of production from the Naccowlah Block was 10,792 bbls of oil equivalent for the year. Bounty holds 2P + 3C (Contingent) reserves of 110,000 bbls. The joint venture maintains an active drilling programme. Activities During the Year Tequila 1 was drilled in January 2023 but failed to intersect commercial oil. Watkins North 1 was drilled in August 2023 and intersected a 3-metre oil column in the target Birkhead Formation and has been cased as a future oil producer. Watkins North 2, also spudded in August 2023, and intersected 7.6 m of pay in the target Birkhead Formation and has been cased as a future oil producer. Bounty has a 10% working interest in Watkins North 2. The joint venture has at least 9 sites for additional appraisal and NFE wells in the Jackson and Watson areas of the Naccowlah Block. Further work will include building additional pipelines and facilities to transport the extra oil production from the recent successful drilling campaigns. SE Queensland - Surat Basin Oil Development Background Bounty’s interest in the Surat Basin at 30 June 2023 was Petroleum Lease 2 Alton (PL 2). Post balance date Bounty acquired Petroleum Lease 46 adjoining PL 2 Alton and is planning workovers which will provide additional light oil production and oil processing. Hydrocarbons are generated in the Permian sequence and are liquids rich. In PL 2 oil is trapped primarily in the Jurassic age Evergreen Formation but also does occur in the underlying Precipice and Showgrounds Sandstones. Here Bounty is targeting around 350,000 bbls of oil in proven reservoirs. 9 Bounty Oil & Gas NL Annual Report - 2023 PL 2 Alton and PL 2 C - Bounty 100% and PL 2 A and B (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. Activities this Year After completing all regulatory requirements, in mid-2023, Bounty is ready to commence field operations leading to a resumption of oil targets and production. Drilling attic oil targeting some unswept oil in the Alton field, will resumption of successful production. follow a Future Plans 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 targeting 150,000 bbl of oil 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. 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. Onshore Carnarvon Basin, Western Australia Location: Surrounding Rough Range Oil Field, 60 Km south of Exmouth, Carnarvon Basin WA Production Licence PL L16 – Bounty 100% Background During the period Bounty conducted well integrity monitoring on the Rough Range 1B well in Petroleum Licence L 16 and was awaiting approval of an environmental plan to commence other remediation at the Rough Range. 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. 10 Bounty Oil & Gas NL Annual Report - 2023 Major Gas Exploration Growth Projects: PEP 11 - Offshore Sydney Basin, New South Wales – Bounty 15% Background and Petroleum Setting largest gas market PEP 11 covers 4,576 sq. km immediately adjacent to the in Australia and is a high impact exploration project (see Location below). PEP 11 the most significant remains one of 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. 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. During 2021 the operator, Advent Energy Ltd (Advent), submitted an application to NOPTA for a permit to drill Seablue 1 targeting the Baleen Prospect in PEP 11 and to change the current Permit conditions to this effect. In the meanwhile, preparations were under way to drill the well and to use the drilling program to investigate CCS - Carbon Capture and Storage (geo- sequestration of CO2 emissions) - opportunities in PEP 11. On March 26, 2022 the applications for variation and extension were formally refused by NOPTA. This refusal was challenged by the Joint Venture in the Federal Court of Australia and permit operations were suspended pending resolution. Activities during the Year On 14 February 2023 when the Federal Court of Australia issued orders that the decision be quashed, and the application remitted to the Joint Authority to be determined in accordance with law. The Joint Venture is awaiting the decision, in the meantime, PEP 11 continues in force and the Joint Venture is in compliance. On July 14, 2023 the Commonwealth declared an area offshore from Newcastle as suitable for wind energy development. Although this partially overlaps PEP 11 it does not interfere with proposed activities and is a welcome development, offering considerable synergies with the gas development and carbon capture and storage operations planned for the Permit in the transition to a renewable future. 11 Bounty Oil & Gas NL Annual Report - 2023 Major Growth Projects Cerberus Project Offshore Carnarvon Basin WA Bounty Earning 25% Background On 7 October 2021 Bounty entered a farmin agreement with a private group, Coastal Oil & Gas Pty Ltd (“Coastal”) 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) lookalikes in identical pinchouts in the same Lower Cretaceous sand package.  Oil targets in Jurassic rocks along trend from proven oil fields at Chamois and Gypsy-Rose-Lee. 12 Bounty Oil & Gas NL Annual Report - 2023 Current Activities Bounty has so far contributed $600,000 to the venture and on 6 April 2022 exercised an option to earn additional equity. Further capital contributions by Bounty are conditional upon a funding proposal from Coastal. Bounty’s further funding of this project awaits a proposal from the operator, Coastal. There was no significant activity under the FIA during the latter part of this period. If discussions currently underway with the operator, come to a favourable conclusion, then the joint venture can advance to drill the priority prospects. 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. 13 Bounty Oil & Gas NL Annual Report - 2023 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 2023. 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 (Independent Chairman) (Non-executive Director) (Non-executive Director) (Executive Director) Company Secretary The following persons held the position of company secretary and chief financial officer of the group during the financial year:  S. Saraf Principal Activities The principal activity of the company and the group during the financial year was that of exploration for, development, production and marketing of oil and gas (petroleum). Investment in listed entities is treated as a secondary activity and business segment. There were no significant changes in the nature of the company’s principal activities during the financial year. Operating Results Operating loss of the group attributable to equity holders for the financial year ended 30 June 2023 amounted to $2.91 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 FY 2023 $ million (2.91) - (2.91) Consolidated FY 2022 $ million (2.49 ) - (2.49) Revenue from continuing operations for the period was $1.77 million down 7% on the previous year (2022: $1.90 million) primarily due to increasing crude oil prices. The operating loss was determined after taking into account the following material items:     Petroleum revenue: (crude oil sales) of $1.77 million Direct petroleum operating expenses of $1.22 million Employee benefits expense of $0.70 million Non-cash expenses for: o Write-off charge to oil and gas assets of o Amortisation and depreciation expenses of $2.12 million $0.34 million 14 Bounty Oil & Gas NL Annual Report - 2023 Details of drilling activity, exploration and development operations and cash flows for the year ended 30 June 2023 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 2023, 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 2023 2022 $1.77 million 10,792 $1.90 million 13,411 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 $1.77 million for the full-year  Bounty’s Naccowlah Block reserves and resources are independently assessed at 31 December each year  Block 2P & 2C developed reserves (producing and contingent) at 31 December 2022 were: 6.848 mmbbls Bounty held 2% of 2P reserves: 69,000 bbls  Bounty’s share of 3P reserves in the Block was 110,000 bbls  The JV drilled only 2 wells during the period. One successful oil well was drilled in July 2022; namely Cooroo NW 7 and then drilled Tequila 2 in January 2023 which was Plugged &Abandoned  Additional developed volumes are waiting for tie-in. After the year end in August 2023 Bounty participated in three exploration/NFE wells – Watkins North 1 & 2 and Wilson 1 of which the first two were cased ready for tie in to the Watson Facilities for production. Bounty participated at 10% in Watkins North 2. In addition to limited new drills in the period Bounty continued to invest in oil development in the Block with an emphasis on production optimisation, infrastructure and compliance. Oil volumes were lower in financial year 2022-2023 but new wells tie-ins to new reserves and oil prices above USD$80/bbl (A$ 135) have provided confidence for new drills. All wells except one which were drilled and cased in prior periods are in production. 15 Bounty Oil & Gas NL Surat Basin; Eastern Queensland Petroleum Lease 2 Alton Annual Report - 2023      Bounty continued detailed planning to re-commence oil production from shut in wells in PL 2 Alton in 2023/2024 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 Alton known as the Kooroon JV. Petroleum Lease 441 Bounty conducted a recoverable reserves and facilities review of the PL 441 Downlands lease and determined that it was not feasible to re-start gas/condensate production. PL441 was relinquished during the period resulting in a non-cash permanent impairment charge at 30 June 2023 of $2.09 million which has been expensed. 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 data acquisition, interpretation and drill planning. Bounty contributed an additional $100,000 to assist the project in 2022 Subject to Coastal confirming funding for the balance drilling expenses and fixing drilling targets 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 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. Bounty and Coastal are targeting three types of Triassic age oil and gas plays. Activities in 2023 As a result of its contributions 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. At 30 June 2023 Bounty had contributed $722,000 pursuant to the farmin agreement and to other expenditure. 16 Bounty Oil & Gas NL Annual Report - 2023 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. Discussions with the operator on funding and possible re-structuring of the Bounty FIA continued during the period.Bounty has registered its FIA and notice of exercise of option against the two southernmost Permits WA EP474 and WA EP 491. The prospective EP475 permit ( EP475 )was extended to May 2024 and any further extension is contingent on a firm drill commitment from Bounty and Coastal by May 2024.The Permits are in good standing. 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. At the end of the period Bounty was making amendments to an updated Environment Plan under consideration by the regulator; DMIR’s. Bounty continued to seek a route to further refine the structure and reservoir in L16 with a view to further seismic surveys and/or an exploration well. Offshore Sydney Basin Offshore, New South Wales PEP 11; Bounty 15% interest: PEP 11 is a 4576 square km gas exploration permit covering the northern section of the offshore Sydney Basin. In December 2021 the Federal Government announced that PEP 11 would not be extended and gave formal notice of the decision in March 2022. Asset Energy Pty Limited (Asset) as the PEP Joint Venture operator commenced proceedings in the Federal Court of Australia (Proceedings) (WAD106/2022) to have the NOPTA decisions reversed. The proceedings challenged the March 2022 decision by the Commonwealth - New South Wales Offshore Petroleum Joint Authority (Joint Authority) to refuse Asset Energy’s Application (as JV operator); to reject its applications for a variation and suspension of the conditions to which PEP 11 is subject and to decline a related grant of an extension of term. On 14 February 2023 Bounty and BPH Energy Limited (BPH) (ASX: BPH) (Asset’s controlling entity) as the PEP 11 Joint Venture announced the resolution of the Proceedings between Asset and the Respondents (being the Commonwealth Minister for Resources et al). Justice Jackson the trial judge approved certain consent orders on the basis that the decision of the Joint Authority was affected by a reasonable apprehension of bias on the part of the relevant Minister. This was because a fair-minded observer would have reasonably apprehended that the relevant Minister Hon Scott Morrison, as a member of the Joint Authority, did not bring a fair mind to determine Asset Energy’s application. The orders made by his Honour on 14 February 2023 were: The decision of the Joint Authority to reject Asset’s applications is set aside; The decision of the Joint Authority is now to be remade according to law; and    Asset Energy is entitled to its reasonable costs. The matter then reverted to NOPTA for re-consideration. To assist NOPTA in such re-consideration Asset Energy) and Bounty have continued to progress the joint venture’s applications for the variation and suspension of the work program conditions and related extension of PEP 11. Accordingly, in 2023 Bounty and Asset Energy have filed additional material with NOPTA in support of the applications including a commitment to drill an exploration well for gas most likely the proposed Seablue 1 well on the Baleen Prospect subject to extension of PEP 11. 17 Bounty Oil & Gas NL Annual Report - 2023 In the meantime, work continued in securing a rig and contractors in preparation for the drilling of the Seablue 1 well. On 14 July 2023; the Hon Chris Bowen, Minister for Climate Change and Energy, gazetted/designated an area off the Hunter Region of NSW as suitable for offshore wind energy development. Part of that area overlaps PEP 11. The joint venture considers that the Declared Area will not have any material impact on the gas prospective areas in PEP 11. The Renewal / Extension applications are pending. The decision of the Joint Authority on the Renewal / Extension applications is now to be re-made according to law as per the Federal Court Orders (see above). At the date of this Report the Joint Venture was preparing further material for NOPTA as a prelude to such decision. Accordingly, at the end of the period decisions on the applications for extension were pending. The above conditions continue to indicate a material uncertainty that may affect the ability of Bounty to realise the carrying value of $602,057 for its 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 operated and joint venture interests located in Queensland and Western Australia. Its participation in the Naccowlah Block drilling and in the Surat Basin is expected to provide material additional oil revenue in 2024.Bounty is actively seeking additional material projects. Corporate – Share Issues No share or option 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 2023 and no dividend is recommended. Financial Position At 30 June 2023 current assets were $1.50 million including cash of $1.24 million. During the financial year the company invested: -   $ 0.77 million on petroleum development drilling, property acquisitions and in completions and surface production facility upgrades mainly in ATP 1189P Naccowlah Block; Queensland to further develop and exploit its existing proved producing oil reserves and to increase its 2P oil reserves. $ 0.19 million in petroleum exploration projects and acquisitions in Australia as summarised in the Review of Operations above. The net assets of the group decreased to $5.63 million in the year ended to 30 June 2023 as a result of non-cash write- offs on petroleum properties. The significant underlying movements resulted from the following items: o Amortisation of production assets $0.24 million o Capitalised Petroleum Cost Write-offs $2.09 million The directors believe the group has a stable financial position to continue expansion of its primary 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. 18 Bounty Oil & Gas NL Annual Report - 2023 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 Post the end of reporting year, the Group acquired 100% controlling interest in Ranger Energy Pty Ltd (a personally related entity of the CEO) for a cash purchase consideration of $260,000. The acquisition will expand the Group's oil development interests in Surat basin, Queensland by addition of PL46 Fairymount oil field. No other matters or circumstances have arisen since the end of the financial year which have significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years, other than those referred to in note 27. 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 Santos Limited, Bounty group companies and AGL Energy Limited. Its non-operated offshore exploration operations in PEP 11, NSW are conducted by a competent operator; BPH Energy Limited. Bounty is a farminee to EP 475, 490 and 491, TP 27 (Cerberus Permits), Western Australia operated by Coastal Oil & Gas Pty Ltd. 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 2023, are: - 19 Bounty Oil & Gas NL Annual Report - 2023 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 Special responsibilities: Charles Ross Qualifications Experience 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 (now part of Beach Energy) 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. Chairman of the company; geotechnical advice. — 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 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. 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 ASX listed Origin Energy and Drillsearch Energy since 2007. Special responsibilities: Company secretary and CFO. Roy Payne — Mr Payne retired as a Non-Executive Director on 23 September 2022. 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 None N/A 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 2020 to present Mr S. Saraf None N/A 20 Bounty Oil & Gas NL Annual Report - 2023 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. S. Saraf Meetings of Directors/Committees Fully paid ordinary shares Share options 22,377,928 3,200,000 - 2,637,792 - - 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 Mr. S. Saraf 7 7 1 7 7 7 1 7 The company does not have separate audit or remuneration committees. Indemnifying Officers or Auditor During the financial year ended 30 June 2023 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 exercisable at 2.5 cents and expiring on 30 November 2025 were on issue during the year ending 30 June 2023. No further options have been issued during the year ending 30 June 2023 or up to the date of this report. Accordingly, except as noted above at balance date on 30 June 2023 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 2023. 21 Bounty Oil & Gas NL Annual Report - 2023 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 2023 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: 29 September 2023 22 Bounty Oil & Gas NL REMUNERATION REPORT Annual Report - 2023 This remuneration report forms part of the Directors Report for the year ended 30 June 2023 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  Senior management personnel policy Key terms and employment contracts Directors and Key Management details The term “key management” as used in this remuneration report to refers to the following directors and executives. Directors The following persons acted as directors of the company during or since the end of the financial year:-  Mr G. C. Reveleigh  Mr C. Ross  Mr R. Payne  Mr 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. 23 Bounty Oil & Gas NL Non-executive directors’ policy Annual Report - 2023 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 2023. 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, may choose 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 $180,000 per annum commencing from financial year 2023-2024 on 1 July 2023.   Payment of business travel, accommodation 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, legal strategy, investment policy and all other duties normally incidental to the position of chief executive officer.   24 Bounty Oil & Gas NL Annual Report - 2023 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 2023 Key Management Person Short-term Benefits $ Cash, salary and commissions Consulting Fees + Other Cash bonus and Non- cash benefits Non-Executive Directors Mr G. Reveleigh (1) Mr C. Ross (1) Mr R. Payne (2) Executive Director Mr. S. Saraf (3) Other Key Management Personnel – Chief Executive officer Mr P.F. Kelso (1) 40,000 14,848 4,545 - - - 130,000 2,000 320,000 - - - - - - 1. Paid to a personally related entity of the director/executive 2. Retired in September 2022 3. Appointed 19 September 2022 Key Management Remuneration 2022 Key Management Person Short-term Benefits $ Cash, salary and commissions Consulting Fees + Other Cash bonus and Non- cash benefits Post- employment Benefits Super- annuation Share based payment Total Options - - 1,432 13,650 - - - 40,000 14,848 5,977 145,650 - - 320,000 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 1. Paid to a personally related entity of the director/executive. No director or senior management person appointed during the above periods received a payment as part of his consideration for agreeing to be appointed to that position. Share–based payments During the financial year ended 30 June 2023 no share-based payments were made to Key Management Persons. 25 Bounty Oil & Gas NL Fully paid ordinary shares Annual Report - 2023 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 2023 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 advance or loans were made to key management personnel including their personally related entities during the financial year ended 30 June 2023 and no loans were outstanding at the end of the prior period. During the year the Company repaid $127,631, being short term interest free advance by related entities of the CEO in prior years. 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 2023 was not based on performance. Employee Share Scheme Bounty Oil & Gas N.L. does not have a current Employee Share Scheme approved by shareholders. 26  Bounty Oil & Gas NL Annual Report - 2023 Consolidated statement of profit and loss and other comprehensive income for the year ended 30 June 2023 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 Impairment of oil and gas assets General legal and professional costs Other expenses Loss before Tax Income tax expense Loss for the period from continuing operations Loss for the year Other comprehensive income for the year, net of income tax Total Comprehensive loss for the period 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-23 $ 30-Jun-22 $ 5 5 5 6 5 14( c) 14( c) 1,768,947 (18,248) 2,749 (1,218,736) 101,769 (697,969) (103,166) (237,723) (113,120) (107,710) (8,905) 25,720 (36,411) (2,090,207) (141,352) (36,827) 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) (2,911,189) (2,482,753) 7 - - (2,911,189) (2,482,753) (2,911,189) (2,482,753) - - (2,911,189) (2,482,753) (2,911,189) (2,482,753) (0.24) (0.24) (0.20) (0.20) The above consolidated statement of comprehensive income should to be read in conjunction with the accompanying notes. 28  Bounty Oil & Gas NL Annual Report - 2023 Consolidated statement of financial position as at 30 June 2023 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-23 $ 30-Jun-22 $ 9 10 11 12 10 14 (b) 14(a) 13 15 16 16 17 1,237,761 155,567 43,636 68,484 1,505,448 60,850 2,173,261 3,721,980 1,087,122 3,162,884 41,009 54,785 79,626 3,338,304 25,850 2,019,076 5,656,942 798,937 7,043,213 8,500,805 8,548,661 11,839,109 1,526,508 126,706 1,653,214 1,870,455 103,165 1,973,620 1,267,457 1,267,457 1,326,310 1,326,310 2,920,671 3,299,930 5,627,990 8,539,179 47,426,757 201,600 (42,000,367) 5,627,990 47,426,757 201,600 (39,089,178) 8,539,179 5,627,990 8,539,179 The above consolidated statement of financial position should to be read in conjunction with the accompanying notes. 29 3 2 0 2 - t r o p e R l a u n n A l a t o T $ i d e n a t e R i / s g n n r a e l d e t a u m u c c A ( ) s e s s o l $ - - , 8 3 3 5 5 4 8 , , ) 3 5 7 2 8 4 2 ( , , ) 3 5 7 2 8 4 2 ( , , ) 5 2 4 6 0 6 6 3 ( , , ) 3 5 7 2 8 4 2 ( , , 0 0 0 1 4 7 2 , ) 6 0 4 4 7 1 ( , 9 7 1 , 9 3 5 , 8 , 9 7 1 9 3 5 8 , , ) 9 8 1 1 1 9 2 ( , - - , ) 3 5 7 2 8 4 2 ( , , ) 9 8 1 1 1 9 2 ( , , ) 8 7 1 9 8 0 9 3 ( , - - - - - - , ) 9 8 1 1 1 9 2 ( , , ) 9 8 1 1 1 9 2 ( , ) 8 7 1 , 9 8 0 , 9 3 ( 0 0 6 , 1 0 2 - - - - - , 0 0 6 1 0 2 $ e v r e s e r n o i t p O - - - - - , 0 0 6 1 0 2 , 3 6 1 0 6 8 4 4 , - - - , 0 0 0 1 4 7 2 , , ) 6 0 4 4 7 1 ( 7 5 7 , 6 2 4 , 7 4 , 7 5 7 6 2 4 7 4 , - - - - - 7 1 7 1 e r a h s y r a n d r O i l a t i p a c $ s e t o N 0 9 9 , 7 2 6 , 5 ) 7 6 3 , 0 0 0 , 2 4 ( 0 0 6 , 1 0 2 7 5 7 , 6 2 4 , 7 4 y t i u q e n i s e g n a h c f o t n e m e t a t s d e t a d i l o s n o C 3 2 0 2 e n u J 0 3 d e d n e r a e y e h t r o f L N s a G & l i O y t n u o B r a e y e h t r o f e m o c n i e v i s n e h e r p m o c r e h t O r a e y e h t r o f e m o c n i e v i s n e h e r p m o c l a t o T 1 2 0 2 y l u J 1 t a e c n a a B l r a e y e h t r o f ) s s o L ( r a e y e h t g n i r u d d e u s s i s e r a h S s t s o c n o i t c a s n a r t e u s s i e r a h S 2 2 0 2 e n u J 0 3 t a e c n a a B l r a e y e h t r o f e m o c n i e v i s n e h e r p m o c r e h t O r a e y e h t r o f e m o c n i e v i s n e h e r p m o c l a t o T 2 2 0 2 y l u J 1 t a e c n a a B l r a e y e h t r o f ) s s o L ( r a e y e h t g n i r u d d e u s s i s e r a h S s t s o c n o i t c a s n a r t e u s s i e r a h S 3 2 0 2 e n u J 0 3 t a e c n a a B l 0 3 . s e t o n g n i y n a p m o c c a e h t h t i w n o i t c n u n o c n j i d a e r e b o t d u o h s l y t i u q e n i s e g n a h c f o t n e m e t a t s d e t a d i l o s n o c e v o b a e h T Bounty Oil & Gas NL Annual Report - 2023 Consolidated statement of cash flows for the year ended 30 June 2023 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 Proceeds from sale of available-for-sale financial assets Payment for available for sale financial assets Net cash (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Costs associated with issue of shares Net cash generated by/(used in) financing activities Year-ended Notes 30-Jun-23 $ 30-Jun-22 $ 1,843,164 (2,990,257) 2,749 2,327,311 (2,518,258) 1,767 18 (1,144,344) (189,180) (218,596) (578,624) (10,293) 8,044 (15,150) (791,074) 284,488 - - (29,378) (814,619) (535,964) - - - 2,741,000 (174,406) 2,566,594 Net increase/(decrease) in cash and cash equivalents (1,958,963) 1,841,450 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 3,162,884 1,410,397 9 33,840 1,237,761 (88,963) 3,162,884 The above consolidated statement of cash flow should be read in conjunction with the accompanying notes. 31 Bounty Oil & Gas NL Annual Report - 2023 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 32 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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 2023. 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 29 September 2023. 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 2023. The Directors have reviewed new accounting standards and interpretations that have been published that are not mandatory for 30 June 2023 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. 33 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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. 34 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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 liabilities. 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 liabilities recorded in the financial statements approximates their respective fair values, determined in accordance with the accounting policies described above and adjusted for capitalised transaction costs, if any. 35 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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 2023, the Group realised a net loss after tax of $2,911,189 (2022: $2,482,753). This was primarily due to non-cash write-off of $2.09 million to oil and gas assets. The net cash spent on operating activities for the period ended 30 June 2023 was $1,144,344 (2022: net cash spent $189,180). The Group’s net asset position at 30 June 2023 was $5,627,990 (30 June 2022: $8,539,179) and a cash balance of $1,237,761 (30 June 2022: $3,162,884). 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 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 Plant and equipment Computer equipment Office furniture and fittings & other 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. 36 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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: In December 2021 the Federal Government announced that PEP 11 would not be extended. The joint venture did however in accordance with its rights make submissions which were rejected however in March 2022 NOPTA had rejected the submissions but did not formally announce termination of the Permit. The operator; Asset Energy Pty Limited (Asset) as the PEP Joint Venture operator commenced proceedings in the Federal Court of Australia (Proceedings) to have the NOPTA decisions reversed and the JV remained fully compliant, including payment of all rents. Cancellation would be an unprecedented step. Bounty continued to pay 15% of the Annual rental to NOPTA but was not a party to the Federal Court action. The proceedings challenged the decision made in March 2022 by the Commonwealth - New South Wales Offshore Petroleum Joint Authority (Joint Authority) to refuse Asset Energy’s Application (as JV operator) for a variation and suspension of the conditions to which PEP 11 is subject and a related refusal to grant an extension of term. On 14 February 2023 Bounty and BPH Energy Limited (BPH) (ASX: BPH) (Asset’s controlling entity) as the PEP 11 Joint Venture announced the resolution of the Proceedings (WAD106/2022) between Asset (a wholly owned subsidiary of BPH’s investee, Advent Energy Limited) and the Respondents (being the Commonwealth Minister for Resources et al). Justice Jackson the trial judge agreed with the consent position reached by the parties and concluded that the decision of the Joint Authority was affected by a reasonable apprehension of bias. The orders made by his Honour on 14 February 2023 were: • The decision of the Joint Authority to reject Asset’s applications is set aside; • The decision of the Joint Authority is now to be remade according to law; and • Asset Energy is entitled to its reasonable costs. His Honour’s reasons for decision were published. The matter then reverted to NOPTA for consideration. The Operator (Asset Energy) continued to progress the joint venture’s applications for the variation and suspension of the work program conditions and related extension of PEP 11. In 2023 Bounty and Asset Energy filed additional material with NOPTA in support of the applications including a commitment to drill an exploration well for gas most likely the proposed Seablue 1 well on the Baleen Prospect subject to extension of PEP 11. In the meantime, work continued in securing a rig and contractors in preparation for the drilling of the Seablue 1 well. The Renewal / extension applications are pending. A decision is expected soon and the balance should be carried forward. The above conditions indicate a material uncertainty that may affect the ability of Bounty to realise the carrying value of $602,057 for it’s interest in the PEP 11 exploration permit in the ordinary course of business. 37 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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. 38 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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. 39 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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. 40 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 s. Employee benefits Wages, salaries, and other entitlements 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. 41 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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. 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. 42 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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. On the PL 441 Downlands lease, Queensland Bounty conducted a facilities and recoverable reserve review and determined that it was not feasible to file a later development plan. PL441 was relinquished during the period resulting in a non-cash permanent impairment charge of $2.08 million at 30 June 2023 which has been expensed. 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).Further commentary on this is included in the Directors' Report. 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-23 $ 30-Jun-22 $ 1,768,947 1,899,571 - - 30-Jun-23 $ (1,743,064) (36,411) 30-Jun-22 $ 634,989 (1,754,447) (18,248) 1,750,699 5,108 1,904,679 (18,248) (1,797,723) 28,469 (1,141,935) (2,911,189) 5,108 (1,114,350) 125,869 (1,494,272) (2,482,753) Segment revenue Revenue reported above represents revenue/income generated from external sources. There were no intersegment sales during the period (2022: 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 $1.77 million (2022: $1.90 million) are revenues of approximately $1.18 million (2022: $1.26 million) which arose from sales to the Group’s largest customer. The revenue from the Group’s second largest customer was approximately $0.59 million (2022: $0.64 million). No other single customer contributed 10% or more to the Groups revenue for both 2023 and 2022. 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-23 $ 326,864 - - 14,025 340,889 30-Jun-22 $ 350,679 - - 13,522 364,201 30-Jun-23 $ 656,792 117,234 190,596 10,293 974,915 30-Jun-22 $ 206,227 117,596 711,365 - 1,035,188 43 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 4. Segment Information (continued) Core Oil & Gas Segment Exploration projects Total Impairment losses/ Write-Off expenses 30-Jun-23 $ 36,411 2,126,618 30-Jun-22 $ 1,754,447 1,754,447 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 liabilities include 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-23 $ 2,928,300 1,996,319 2,173,261 30-Jun-22 $ 4,589,382 1,887,286 2,019,076 30-Jun-23 $ 2,160,223 71,171 38,836 30-Jun-22 $ 2,398,661 71,171 38,836 68,484 1,382,297 8,548,661 79,626 3,263,739 11,839,109 - 650,441 2,920,671 - 791,262 3,299,930 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-23 $ 1,779,168 1,779,168 30-Jun-22 $ 2,030,548 2,030,548 30-Jun-23 $ 7,043,213 7,043,213 30-Jun-22 $ 8,500,805 8,500,805 30-Jun-23 $ 1,741,774 27,173 1,768,947 30-Jun-22 $ 1,878,786 20,785 1,899,571 2,953 (21,201) (18,248) 2,749 - 2,749 25,720 45,717 (40,608) 5,108 1,768 33,000 34,768 91,101 1,779,168 2,030,548 (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. 44 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 6. Employee benefit expense Directors fees Consultancy fees - Internal Wages & salaries Other employee benefit expenses Total Employee benefit expense 30-Jun-23 $ 204,475 320,000 131,286 42,208 697,969 30-Jun-22 $ 70,000 320,000 377,670 242,160 1,009,830 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 $ (727,797) 616,471 (483,016) $ (620,688) 477,155 (281,516) Tax effect of Unused tax losses not recognised as deferred tax asset (594,342) (425,049) 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) (0.24) (0.24) (0.20) (0.20) Net (loss)/profit used in the calculation of basic and diluted earnings/(loss) per share (2,911,189) (2,482,753) Weighted average number of ordinary shares for the purposes of basic and diluted EPS 9. Cash and cash equivalents Deposits on call Cash at bank Total Cash and cash equivalents No. of Shares No. of Shares 1,370,500,982 1,370,500,982 $ 67,337 1,170,424 1,237,761 $ 66,594 3,096,290 3,162,884 45 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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-23 $ 106,641 28,926 20,000 155,567 60,850 60,850 $ 43,636 43,636 30-Jun-22 $ 2,083 18,926 20,000 41,009 25,850 25,850 $ 54,785 54,785 $ $ 68,484 68,484 79,626 79,626 $ $ 1,797,934 (710,812) 1,406,582 (607,645) 1,087,122 798,937 $ $ 798,937 391,351 (103,166) 1,087,122 892,097 9,010 (102,169) 798,937 46 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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 Less: Impairment Rehabilitation costs – all petroleum properties All other development assets Total production and development assets 30-Jun-23 30-Jun-22 $ $ 3,850,977 (2,758,398) 4,700,614 (2,518,608) (2,082,006) 533,082 1,996,319 3,721,980 3,749,894 (2,553,992) 4,525,963 (2,518,608) - 566,399 1,887,286 5,656,942 Movement in carrying amounts of production & development assets: $ $ Opening balance at the beginning of the year Additions Movement in rehabilitation Impairment of production and development assets (see i below) Amortisation of production assets Carrying amount at the end of the year 5,656,942 392,968 (33,317) (2,090,207) (204,406) 3,721,980 5,604,161 314,813 (33,317) - (228,715) 5,656,942 (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. On the PL 441 Downlands lease, Queensland Bounty conducted a facilities and recoverable reserve review and determined that it was not feasible to file a later development plan. PL441 was relinquished during the period resulting in a non-cash permanent impairment charge of $2.08 million at 30 June 2023 which has been expensed. 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. 2023-24 $85.00 $0.680 4.5% 7.0% Key assumptions used: Crude oil price (US$) 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 (c): Impairment and write-off of oil and gas properties PL 441 Downlands Other PEL 218 Post Permian JV , SA 15. Trade and other payables Current Trade payables Amounts owing to Joint Operations GST, FBT, PAYG & superannuation liability Total trade and other payables 47 2025+ $80.00 $0.70 3.0% 6.0% $ $ 2,173,261 2,173,261 2,019,076 2,019,076 $ $ 2,019,076 190,596 (36,411) 2,173,261 $ 2,082,006 8,201 - 2,090,207 3,062,158 711,365 (1,754,447) 2,019,076 $ - 1,754,447 1,754,447 $ $ 1,001,724 480,155 44,629 1,526,508 1,125,669 649,739 95,047 1,870,455 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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-23 30-Jun-22 $ 126,706 22,607 1,244,850 1,267,457 1,326,310 8,905 - (67,758) 1,267,457 $ 103,165 35,475 1,290,835 1,326,310 1,369,963 27,325 (51,708) (19,270) 1,326,310 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 2023 was 4%, 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 (2022: 1,370,500,982) 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 Issued during prior year ($0.025 exercise price exp 30-Nov-25) Balance at end of year 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 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 oil and gas assets Impairment of oil and gas 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 48 $ $ 47,426,757 201,600 47,628,357 47,426,757 201,600 47,628,357 No. of Shares 1,370,500,982 No. of Shares 1,370,500,982 - - 1,370,500,982 1,370,500,982 290,565,681 - - 290,565,681 - - 290,565,681 290,565,681 $ $ (2,911,189) (2,482,753) 331,984 21,201 (25,720) (35,312) 36,411 2,090,207 - (157,678) (2,953) 11,149 8,905 (511,349) (1,144,344) 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) Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 19. Share based payments No share based payment compensation was granted to directors or senior management during the financial year ended 30th June 2023 and there was Nil expensed (2022: 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-23 $ 30-Jun-22 $ 524,475 - 524,475 391,500 - 391,500 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: 2023 Non- Executive Directors G Reveleigh C Ross Executive Director S Saraf CEO P Kelso 2022 Non- Executive Directors G Reveleigh R Payne C Ross CEO P Kelso Security Type Shares Options Shares Options Balance at Start of the Year 22,377,928 2,637,792 3,200,000 - Purchases - Received on exercise of Options - - Received other Sales Held at the end of Year - - - - - - - 22,377,928 2,637,792 - 3,200,000 - - Shares Options - - - - - - - - - - - - Shares Options 36,187,492 1,900,000 - 3,542,747 - - - 38,087,492 - 3,542,747 Shares Options Shares Options Shares 21,377,928 1,000,000 - 2,637,792 - 1,000,000 - 600,000 - 3,200,000 - - - - - - - 22,377,928 2,637,792 - 1,000,000 600,000 - 3,200,000 Shares Options 34,287,492 1,900,000 - 3,542,747 - - - 36,187,492 - 3,542,747 No shares were granted to key management personnel during the financial year or during the previous financial year. There were no option on issue in the financial year. During the previous financial year, new series of listed options were allotted as part of Placement and Bonus issue for nil cost with exercise price of $0.025 expiring 30 November 2025. 49 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 20. Key management personnel (continued) 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 2023 and no loans were outstanding at the end of the prior period. During the year the Company repaid $127,631 (net), being part of short term interest free loan advanced by related entities of the CEO in previous years. 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 $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 30-Jun-23 $ 30-Jun-22 $ - - 81,500 81,500 1,500 8,400 81,500 91,400 21. Commitments 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: $ 1,488,000 3,720,000 5,208,000 $ 883,000 2,295,800 3,178,800 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 (2022: nil). 50 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 23. Financial instruments (continued) b) Categories of financial instruments: Financial assets Cash and cash equivalents Loans deposits and receivables Available for sale financial assets designated as at FVTPL Total financial assets Financial liabilities Other amortised cost - trade creditors Total financial liabilities Note 12 30-Jun-23 30-Jun-22 $ 1,237,761 216,417 68,484 1,522,662 $ 3,162,884 66,859 79,626 3,309,369 (1,526,508) (1,526,508) (1,870,455) (1,870,455) 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-23 $ 1,237,761 216,417 1,454,178 30-Jun-22 $ 3,162,884 66,859 3,229,743 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-23 30-Jun-22 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. - - 155,567 - - 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). 51 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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-23 $ 30-Jun-22 $ Financial assets at fair value through profit or loss (see note 12) Quoted bid prices in an active market Level 1 68,484 79,626 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 Equity holding % (1) 100 100 100 100 100 100 Australia Australia Australia Country of Incorporation 30-Jun-23 30-Jun-22 (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 2023, which in the opinion of the directors are material to the Group: Name of the joint arrangement ATP 1189P Naccowlah block PEP11 Measurement Method Proportionate Adelaide, Australia Proportionate Principal activity Production Exploration Principal place of business Perth, Australia 2% 15% 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 52 30-Jun-23 $ 1,768,947 (1,421,804) 347,143 30-Jun-22 $ 1,899,571 (1,264,582) 634,989 126,641 43,635 23,073 54,784 856,200 1,625,661 2,652,137 480,155 983,349 1,463,504 1,188,633 533,470 1,762,301 2,373,628 649,739 1,029,334 1,679,073 694,555 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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 2023, the group held interests in joint operations whose principal activities were exploration, evaluation and development of oil and gas but not accruing material revenue. The company contributes cash funds to the joint operations by way of cash calls for a specified percentage of total exploration and development activities. Other than the ATP1189P Naccowlah Block production Joint Operations none of the joint operations hold any material assets and accordingly the Company’s share of exploration, evaluation and development expenditure is accounted for in accordance with the policy set out in Note 1. 26. Parent entity information The accounting policies of the parent entity, which have been applied in determining the financial information shown below, are same as those applied in the consolidated financial statements. Refer to Note 1 for a summary of the significant accounting policies relating to the Group. After review of policies, the Board resolved to reclassify the intercompany loans to controlled entities as non current assets. The individual financial statements for the parent entity Bounty Oil & Gas NL show the following aggregate amounts: Statement of Financial Position Assets Current assets Non-current assets Total Assets 1,452,337 11,746,232 13,198,569 3,250,723 11,148,884 14,399,607 30-Jun-23 $ 30-Jun-22 $ 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. 53 915,790 1,005,956 1,921,746 11,276,823 1,273,485 1,064,809 2,338,294 12,061,313 47,426,757 201,600 (36,351,533) 11,276,824 47,426,757 201,600 (35,567,044) 12,061,313 (784,490) - (784,490) (2,424,206) - (2,424,206) 975,000 2,437,500 3,412,500 606,000 1,575,600 2,181,600 Bounty Oil & Gas NL Annual Report - 2023 Notes to the consolidated financial statements for the year ended 30 June 2023 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 Post the end of reporting year, the Group acquired 100% controlling interest in Ranger Energy Pty Ltd ( a personally related entity of the CEO) for a cash purchase consideration of $260,000. The acquisition will expand the Group's oil development interests in Surat basin, Queensland. No other matters or circumstances have arisen since the end of the financial year which have significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years, other than those referred to in note 27 above. 29. Auditors remuneration Remuneration of the auditors of the Company for: - Auditing or reviewing the financial reports for year Total 30-Jun-23 30-Jun-22 $ 36,000 36,000 $ 34,000 34,000 The auditor to Bounty Oil & Gas NL is William M Moyes, Suite 1301, Level 13, 115 Pitt Street, Sydney NSW 2000. 30. Company details Bounty Oil & Gas NL’s registered office and its principal place of business are as follows: Registered Office Level 7, 283 George Street Sydney, NSW, 2000, Australia Tel: (02) 9299 7200 Principal place of business Level 7, 283 George Street Sydney, NSW, 2000, Australia Tel: (02) 9299 7200 54 Bounty Oil & Gas NL DIRECTORS’ DECLARATION Annual Report - 2023 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 2023 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 Chairman - Board of Directors Dated: 29 September 2023 55 Bounty Oil & Gas NL Annual Report - 2023 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 2023: a) Analysis of numbers of holders of fully paid ordinary shares: No. of Securities 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and above No. of Shareholders 226 111 370 2,149 1,375 4,231 b) Twenty largest holders of quoted equity securities at 26 September 2023: Ordinary Shareholders David Alan McSeveny Comadvance Pty Ltd. GH Corporate Services Pty Ltd Hooks Enterprises Bang Vi Khanh Barry Sheedy & Associates Pty Ltd. Red Kite Capital Inc. Zanamere Pty Ltd. BNP Paribas Nominees Pty Ltd. Tri-Ex Holdings Pty Ltd. WH Ave LLC Kestrel Petroleum Pty Ltd. Jordan Vujic Citicorp Nominees Pty Ltd. Tan & Vuong Family Super Noel Anthony Snazelle Ronald Girard Airen Youhanna Milica Vujic C G Consortium Pty Ltd Total Top 20 Holders 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Fully paid number 34,096,543 31,294,403 30,699,484 30,200,000 29,100,000 27,893,700 27,022,000 22,377,928 27,137,588 19,177,778 18,000,000 15,175,000 13,080,883 12,577,538 12,680,023 12,071,145 12,000,000 9,930,000 9,500,418 9,000,000 403,014,431 % 2.49% 2.28% 2.24% 2.20% 2.12% 2.04% 1.97% 1.63% 1.98% 1.40% 1.31% 1.11% 0.95% 0.92% 0.93% 0.88% 0.88% 0.72% 0.69% 0.66% 29.41% c) Options as at 26 September 2023: i) 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. 60 Bounty Oil & Gas NL Annual Report - 2023 2. Substantial Shareholders As at 26 September 2023 there were no substantial shareholders as disclosed in substantial shareholders notices given to the company. 3. Issued Shares and Distribution a) b) c) The total number of fully paid ordinary shares on issue on 26 September 2023 was 1,370,500,982. There were 2,428 holders of less than a marketable parcel of ordinary shares, totalling 59,788,547 shares being 4.36% of number of fully paid ordinary shares on issue. The percentage of the total holding of the 20 largest shareholders of ordinary shares was 29.41% of issued capital. 4. 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). 5. Income Tax The company is taxed as a public company. 6. Voting Rights The voting rights attaching to ordinary shares are governed by the Constitution. At a meeting of members every person present who is a member or representative of a member shall on a show of hands have one vote and on a poll, every member present in person or by proxy or by attorney or duly authorised representative shall have one vote for each share held. No options have any voting rights. 7. Additional Information Information in these financial statements (or in the annual report) that relates to or refers to petroleum exploration and prospectivity or petroleum or hydrocarbon reserves or resources is based on information compiled and/or written by Mr Philip F Kelso the CEO of Bounty Oil & Gas NL. Mr Kelso is a Bachelor of Science (Geology) and has practised geology and petroleum geology for in excess of 45 years. He is a member of the Petroleum Exploration Society of Australia and a 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. 8. Secretary The name of the Secretary of the company is Mr. Sachin Saraf. 9. Share Buy Back There is no current on market share buy-back. 61 Bounty Oil & Gas NL Annual Report - 2023 Schedule of Petroleum Tenements – 28 September 2023 Permit Operator Offshore Australia (NSW) Basin Expires Status Interest Gross Km2 Net Km2 PEP-11 Asset2 Sydney 12/02/2021 Granted 9 15% 4576.4 686.5 Offshore Western Australia EP 475 EP 490 EP 491 TP/27 Coastal7 Coastal7 Coastal7 Coastal7 Carnarvon 27/05/2024 Granted Carnarvon 27/05/2026 Granted Carnarvon 27/05/2026 Granted Carnarvon 27/05/2026 Granted 25% FI6 25% FI6 25% FI6 25% FI6 562.3 1411.2 1447.2 338.1 140.6 352.8 361.8 84.5 Onshore Western Australia Carnarvon 23/09/2031 Granted 100% 79.5 79.5 L 16 Rough Range3 Onshore SW Queensland Santos4 ATP 1189 N Eromanga 31/12/2022 Renewing PL 1026 PL 1047 Santos4 Cooper 8/07/2024 Santos4 Eromanga PL 1060 Santos4 Eromanga PL 1093 Santos4 Eromanga Granted Under Application Under Application Under Application 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 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 Santos4 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 28/02/2030 Granted Eromanga 28/02/2030 Granted Eromanga 11/10/2027 Granted Eromanga 31/07/2031 Granted Eromanga 10/07/2028 Granted PL 36/PL 1124 Santos4 Eromanga 7/04/2023 Renewing PL 495 PL 496 Santos4 Santos4 Eromanga 29/09/2024 Granted Eromanga 29/09/2024 Granted PL 62/PL 1118 Santos4 Eromanga 15/04/2022 Renewing PL 76/PL 1122 Santos4 Eromanga 23/11/2022 Renewing PL 77 Santos4 Eromanga 23/11/2028 Granted PL 78/PL 1121 Santos4 Eromanga 23/11/2022 Renewing PL 79/PL 1078 Santos4 Eromanga 6/09/2020 Renewing PL 82/PL 1079 Santos4 Eromanga 6/09/2020 Renewing PL 87/PL 1080 Santos4 Eromanga 6/09/2020 Renewing 62 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 314.3 18.3 31.8 127.8 45.8 12.2 12.2 27.5 18.3 27.5 234.6 200.9 256 256 12.2 12.2 136.5 60.9 9.2 12.2 64.7 39.5 12.2 12.1 6.5 10.4 27.5 6.3 0.4 0.6 2.6 0.9 0.2 0.2 0.6 0.4 0.6 4.7 4.0 5.1 5.1 0.2 0.2 2.7 1.2 0.2 0.2 1.3 0.8 0.2 0.2 0.1 0.2 0.6 Bounty Oil & Gas NL Annual Report - 2023 Onshore Surat Basin SE Queensland PL 2 PL 2A PL 2 B PL 2 C ATP 1190 SG PCA 333 PPL 588 Total Bounty1 Bounty1 Bounty1 Bounty1 AGL5 AGL5 Ausam10 Surat Surat Surat Surat Surat Surat Surat Operators / Notes 1. Bounty Oil & Gas NL 31/12/2032 Granted 31/12/2032 Granted 31/12/2032 Granted 31/12/2032 Granted 17/12/2022 Renewing Under Application 12/07/2039 Granted 100% 81.75% 81.75% 100% 24.75% 24.75% 100% 9.4 42.5 45.6 36.1 15.3 15.3 9 9.4 34.7 37.3 36.1 3.8 3.8 9 10366.5 1871.8 2. Asset Energy Pty Ltd - a wholly owned subsidiary of Advent Energy Ltd. 3. Rough Range Oil Pty Ltd. - a wholly owned subsidiary of Bounty Oil & Gas NL 4. Santos Limited group companies 5. AGL Upstream Gas (MOS) Pty. Ltd. 6. Bounty Oil & Gas NL + Interstate Energy Pty Ltd. (a wholly owned subsidiary of Bounty Oil & Gas NL) farm in to earn 25% with option to earn up to 50% 7. Coastal Oil & Gas Pty Ltd 8. Petroleum Pipeline Licence 58 (Queensland) 9. NOPTA Currently considering JV’s applications for variation of work program and extension of Permit term. 10. Ausam Resources Pty Ltd - a wholly owned subsidiary of Bounty Oil & Gas NL. 63 Bounty Oil & Gas NL Annual Report - 2023 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 NFE NOPTA P10 P90 PCA Permeability Permit Play Plug and Abandon (P&A) Pmean Porosity Prospect (petroleum) Prospective Resources PRL Reserves Reservoir Specialised analysis of seismic data comparing amplitude of sound waves versus collection point offsets A unit of volume of oil production, one barrel equals 42 US gallons, 35 imperial gallons or approximately 159 litres A segment of the earth’s crust which has down warped and in which sediments have accumulated, such areas may contain hydrocarbons Billion cubic feet, i.e. 1,000 million cubic feet (equivalent to approximately 28.3 million cubic metres) of gas Barrels of oil per day; barrels per day Discovered resources, not yet fully commercial Coal seam gas Gas initially in place A structural or stratigraphic feature which has the potential to contain hydrocarbons An agreement in which a national or state government gives an oil Company the rights to explore for and produce oil and/or gas in a designated area Thousand cubic feet – the standard measure for natural gas Measured depth below Rotary Table Million barrels, million barrels of oil Million cubic feet, million cubic feet of gas, million cubic feet of gas per day Near field exploration well (for oil) National Offshore Petroleum Title 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 Petroleum Retention Lease (South Australia) Quantities of economically recoverable hydrocarbons estimated to be present within a trap, classified as prove, probably or possible A subsurface volume of rock of sufficient porosity and permeability to permit the accumulation of crude oil and natural gas under adequate trap conditions 64 Bounty Oil & Gas NL Annual Report - 2023 Seal, Sealing Formation Seismic Survey Spud Stratigraphic Trap Structure Sub-basin TCF/Tcf TVDS Up-dip A geological formation that does not permit the passage of fluids. Refer also to Cap Rock A type of geophysical survey where the travel times of artificially created seismic waves are measured as they are reflected in a near vertical sense back to the surface from subsurface boundaries. This data is typically used to determine the depths to the tops of stratigraphic units and in making subsurface structural contour maps and ultimately in delineating prospective structures To start the actual drilling of a well A type of petroleum trap which results from variations in the lithology of the reservoir rock, which cause a termination of the reservoir, usually on the up dip extension A discrete area of deformed sedimentary rocks, in which the resultant bed configuration is such as to form a potential trap for migrating hydrocarbons A localised depression within a basin Trillion cubic feet (of gas) Total vertical depth below Sea Level At a structurally higher elevation within dipping strata 65 Bounty Oil & Gas NL Annual Report - 2023 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 Company Secretary Sachin Saraf BankWest, Perth Commonwealth Bank of Australia, Sydney Legal Counsel Mizen & Mizen 69 Mount Street West Perth WA 6005 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. 906 12th Ave SW Ste 820, Calgary, Alberta, T2R 1K7, Canada Auditors Mr. William M Moyes Moyes Yong & Co Suite 1301, Level 13 115 Pitt Street Sydney NSW 2000 Telephone: Facsimile: +61 2 8256 1100 +61 2 8256 1111 66 

Continue reading text version or see original annual report in PDF format above