more positives, page-185

Pel 218 Post Permian extract from BUY Qtrly.

PEL 218 is a very large permit covering some 1600 square km of the Nappamerri Trough in NE South Australia. It is proven for oil and has potential for significant conventional and unconventional gas in the post Permian section in which Bounty holds a 23.28% interest.

Beach Energy has completed 3 vertical unconventional gas wells into the Permian section and is planning a further 7 vertical and 2 horizontal unconventional gas wells in PEL 218.

Bounty has no interest in the Permian sequences and therefore no interest in any reserves which may be encountered in the Permian age sequences in these wells and so does not contribute to the costs.

The data and logs from these wells which penetrate the section where Bounty has the 23.28% interest are however providing very valuable data to the base of the Triassic age section to guide exploration for oil, gas and coal seam gas in this very large permit.

The Halifax 1 well drilled by Beach in the adjacent ATP 855P to the east flowed gas to surface from sands in the basal Nappamerri Group. This Nappamerri Group sequence extends west into PEL 218 and is possibly extensive in the 1600 sq km permit.

There are indications from seismic attribute analysis that similar gas concentrations are present in these post Permian sequence in which Bounty has an interest.

This setting with gas has some analogies to the Deep Basin Gas of the western Canada Basin