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

Sydney, Dec 24, 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, offshore NSW. MEC Resources (ASX:MMR) (PINK:MECSF) investee company Advent Energy Ltd (Advent) has reported:

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:

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

- Install BOP's and subsea wellhead equipment.

- Drill ahead to the next casing point at approximately 346 metres

- Rig up and conduct wireline logging over the interval 314 to 346 metres. The logging instruments included "look ahead" seismic instruments intended to measure seismic waves for interpreting pore fluids beyond the present drilling depth.

- At 0600 on 24 December 2010 the well was at 346 metres.

Forward Operations:

Prepare to open (widen) the hole to 12 1/4" and then run 9 5/8" casing and cement in hole at approximately 346 metres BRT. Drill ahead to target zones.

The drilling schedule suggests drilling through the reservoir section will now occur on approximately Tuesday 28th December, 2010.

The well will evaluate any hydrocarbon bearing reservoirs with wireline logging tools. The drilling program does not incorporate flow testing or flaring of hydrocarbons. Upon conclusion of the drilling activity, the well will be plugged and abandoned as per the approved drilling program and best practice.

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:

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, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/64903-ASX-BUY-619189.pdf

Contact

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