News: Bounty Oil & Gas drilling developments

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Bounty Oil & Gas NL (ASX:BUY) says it will start drilling on the Ocean Patriot rig in October, in what will be the first natural gas exploration well off the coast of New South Wales.

Advent Energy will be a partner in the project, who last month increased an estimate of the resource in the permit to 13.2 trillion cubic feet.

Bounty and Advent have advised that they will fully comply with all environmental and regulatory requirements in connection with the proposed off-shore drilling program.

Should the gas discovery be profitable it could represent a move from coal to gas for increased power generation, contributing to a decrease in carbon emissions.

Bounty says the commercial development of a gas discovery would also have the potential to contribute to Australia meeting its Kyoto protocol objectives through the supply of gas for a new generation of low carbon emission gas fired power stations in New South Wales.

Bounty advises that it currently has reserves and resources approaching 4 million barrels of oil equivalent.

Bounty Oil & Gas reported a loss of $3.44 million for the year to 30 June 2009.