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

Sydney, Dec 30, 2010 AEST (ABN Newswire) - Bounty Oil & Gas NL (ASX:BUY) (PINK:BYOGF) ("Bounty") announces progress report on the New Seaclem 1 well in PEP 11, offshore New South Wales. MEC Resources (ASX:MMR) investee company Advent Energy Ltd (Advent) has reported:

Progress since Last Report

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

Since the last report on 24 December 2010 progress has been as follows:

- Open (widen) the hole to 12 1/4" to approximately 395 metres BRT

- Set and cement 9 5/8" casing at 395 metres

- Drill out casing shoe and conduct pressure tests

- Drill ahead with controlled drilling

- At 0600 on 29 December 2010 the well was at 581 metres.

- The well did not encounter gas shows or other hydrocarbons above that depth at the Great White or Marlin target intervals with the LWD tools or in drilling mud returns.

- Since 0600 the well has drilled through the interpreted base Cainozoic unconformity into a pre Cainozoic age sequence at 590 metres, 30 metres higher than the prognosed depth of 620 metres.

- The well is currently drilling ahead in a pre Cainozoic sequence of uncertain age but tentatively assigned to the Triassic age at a depth of 715 metres BRT.

Forward Operations:

Drill to TD at around 750 metres BRT and review LWD and other logging data. Depending on the review, conduct wireline or other logging operations.

Commenting on the well to date, Bounty's CEO, Philip Kelso said:

"New Seaclem 1 has been the first exploration well to be drilled for gas offshore New South Wales and is a material achievement for the joint venture. The well time has been slow but Advent has been very careful to ensure safe operations with a very conservative casing program and to protect the environment. The Great White and Marlin prospects were shallow gas targets and do not appear to be gas charged down to 581 metres BRT.

Advent Energy has elected to deepen the well to gain an understanding of the pre Cainozoic age section. After completion of the well the joint venture will carry out detailed micropalaeontological studies to determine the exact ages of this section. This work will assist mapping of the very extensive potentially gas charged sequences in the offshore Sydney Basin and prepare for further seismic surveys and exploration programs in PEP 11.

Gas is being generated in other parts of the permit and there are a number of seismically mapped deeper targets with major gas potential in the Permo-Triassic age sequences in this 8,200 square kilometre permit.

Although Bounty is disappointed that this first well has not encountered hydrocarbons it has provided very important data to assist the forward exploration of PEP 11.

Bounty and Advent will remain active participants in the entire permit. The forward program for PEP 11 will require additional seismic surveys and an additional commitment well. We remain very positive on the potential for PEP 11 to contribute a major gas discovery for New South Wales."

The major shareholders of Advent are:

- MEC Resources,

- 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: 750 metres approx.

- Target: Post Palaeozoic age section

- Abbreviations

BRT: measured distance in metres below rotary table of rig

BOP's: blow out preventers

LWD tools: Logging while drilling - instruments in the bottom hole drilling assembly to conduct measurements while drilling.

TD: total measured depth of well BRT

For the complete Bounty Oil announcement including location map, please view the following link:

http://www.abnnewswire.net/media/en/docs/64920-ASX-BUY-619512.pdf

Contact

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