Bounty Oil And Gas NL (ASX:BUY) Spudding Progress Report On The New Seaclem 1 Well In PEP 11

Sydney, Dec 15, 2010 AEST (ABN Newswire) - Bounty Oil & Gas NL (ASX:BUY) (PINK:BYOGF) ("Bounty") is pleased to announce progress report on the New Seaclem 1 well in PEP 11.

The well was spudded at 00.00 hours AEDST 15 December 2010 and has drilled the 9 7/8" pilot hole to 310.5 metres BRT.

Current operations: Preparing to open hole to 36" before running the 30" conductor casing. This conductor will be cemented into the well in preparation for installation of the BOPs.

Forward operations: On current schedule, BOPs are expected to be installed on 19 December 2010 and the well is anticipated to reach the primary objective target zone during the period, 25-26 December 2010.

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

The well operator is Asset Energy Pty Limited a wholly owned subsidiary of Advent Energy Limited.

The major shareholders of Advent are:

- MEC Resources (ASX:MMR),

- BPH Energy Limited (ASX:BPH),

- Grandbridge Limited (ASX:GBA);and

- Talbot Group Investments.

New Seaclem-1 Well Summary

Brief well details:

Name: New Seaclem 1

Position: Latitude: 32 degree 55''49.7''; Longitude: 152 degree 22'25.07''

Planned Total Depth: 866 metres approx.

Target: Post Palaeozoic age section

Abbreviations: BOPs: blowout preventers

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

The well is 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 Energy Limited will increase its working interest in PEP11 from 25% to 85%. Bounty will thereby reduce its interest from 75% to 15%.

Contact

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