Bounty Oil and Gas NL (ASX:BUY) Received Final Permits For New Seaclem 1 Well

Perth, Dec 10, 2010 AEST (ABN Newswire) - Bounty Oil and Gas NL (ASX:BUY) (PINK:BYOGF) ("Bounty") is pleased to announce that the joint venture has received approval from the Commonwealth Department of Sustainability, Environment, Water, Population and Communities (DSEWPC) for the drilling of New Seaclem-1, in PEP 11 offshore Newcastle, NSW.

Formal advice has been given to Asset Energy Pty Ltd (a wholly owned subsidiary of farmin partner Advent Energy Limited) on behalf of the joint venture that the proposed drilling of the well is "not a controlled action" under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Bounty advises that the joint venture has now received all necessary statutory approvals and drilling permits to proceed with the drilling of New Seaclem-1. Under its internal control procedures, Advent will continue to comply with the regulations and the terms and conditions of the permits and approvals issued.

The "Ocean Patriot" semi submersible drill rig continues under tow north towards the New Seaclem-1 drilling location.

Upon arriving at location, the rig's anchors will be run before the rig ballasts down.

The well is anticipated to spud late Tuesday 14th December, 2010.

Bounty will release further details as soon as this information is available.

Commenting, Bounty's CEO; Philip Kelso said:

"New Seaclem 1 will test a potential multi TCF and multi zone stratigraphic shallow gas play, analogous to the major A12 gas field in the North Sea.

The joint venture has now completed the rigorous process required by the joint authority to examine and refine the proposal to drill New Seaclem 1.The joint authority has quite properly scrutinised the proposal as guardians of the wider public interest but commentary that permits would not be granted has always been well wide of the mark.

The relevant governments are very interested to see the PEP 11 joint venturers pursuing potentially large natural gas resources in the offshore Sydney region as a possible source of clean alternative energy for the State of New South Wales.

Detailed seismic analysis at the New Seaclem 1 location has given strong indications of possible gas. Drilling an offshore well is a challenging project and we look forward to commencement of this first and very exciting drill test in PEP 11."

New Seaclem-1 Well Summary

The New Seaclem 1 well will be drilled in PEP11; 55km east of Newcastle within Commonwealth Waters.

The well will be the first exploration well to be drilled offshore New South Wales.

New Seaclem-1 will target natural gas in the Great White and Marlin stratigraphic prospects contained within the Cainozoic age sedimentary sequence. The specific gas targets are within interpreted Tertiary age sandstone reservoirs in that sequence and on the basis of seismic interpretation and site surveys the Great White/Marlin prospects have prospective gas in place resources of 7 TCF.

Bounty is free carried for all costs of the New Seaclem 1 well. Upon completion of the well Advent will increase its working interest in PEP11 from 25% to 85%. Bounty will thereby reduce its interest from 75% to 15%.

For the complete Bounty Oil and Gas announcement including location map and diagrams please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64415-ASX-BUY-616942.pdf

Contact

Philip Kelso Chief Executive Officer Tel: +61-2-9299-7200 Email: geo@bountyoil.com http://www.bountyoil.com