Bounty Oil And Gas NL (ASX:BUY) Announce Progress Report on New Seaclem 1 Well

Sydney, Dec 20, 2010 AEST (ABN Newswire) - Bounty Oil & Gas NL (ASX:BUY) (PINK:BYOGF) is pleased to announce progress report on the New Seaclem 1 well in PEP 11, offshore NSW on behalf of the joint venture.

Progress since Last Report

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

Since the last report progress has been as follows:

- the hole was opened (widened) to 36" to a depth of 221.2 metres BRT following which 30" casing was run in the hole to that depth and cemented.

- subsea wellhead equipment and BOP's have been prepared for installation.

- drilled out casing shoe at 221.2 metres BRT casing point and drilled 17 1/2" hole to 314 metres.

- Preparing to run 13 3/8" casing.

Forward Operations:

Run and cement 13 3/8" casing to the intermediate casing point at 314 metres.

Install BOP's and subsea wellhead equipment then prepare to drill ahead in 8 1/2" hole.

Currently the well is one day behind schedule and is still 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 BRT: measured distance in metres below rotary table of rig

BOP's blow out 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%.

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

http://www.abnnewswire.net/media/en/docs/64848-ASX-BUY-618052.pdf

Contact

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