arc's gain ** bounty's loss

"...Mr Fontaine's actions to remove the two directors were linked to frustration with the board for selling one of the company's key assets, its 7.5 per cent interest in two permits in the promising offshore Perth Basin to Arc Energy.

In his letter to shareholders, Mr Fontaine said drilling earlier this year at the Hadda 1 well proved an oil system in the area and the potential for significant oil discoveries in lightly explored permits covering 8500sqkm.

"Bounty's permit interests were adjacent to the 20 million barrel Cliff Head oil development and in my opinion were a major and significant asset of the company," he said. "In my opinion they had very significant potential. That upside is now limited to capped payments from Arc."

Mr Fontaine said Bounty should not have sold its North Perth Basin interests but should have pursued alternative funding proposals through a share placement.

"The Perth Basin was the making of Arc (Energy) and Voyager (Energy) and so I was shocked and completely opposed to the selling of that asset," Mr Fontaine said. "We're not in the real estate business, we should not be in the business of selling assets, we should be drilling them."

Full article at:
http://www.thewest.com.au/20051024/business/tw-business-home-sto132553.html