Bounty Oil And Gas NL (ASX:BUY) Update On Utopia Oil Development Drilling

Sydney, Jan 18, 2011 AEST (ABN Newswire) - Bounty Oil & Gas NL (ASX:BUY) (PINK:BYOGF) announces an update on it's oil development drilling program in the Utopia Field.

The Utopia Field lies 50km southeast of the town of Eromanga, in SW Queensland and contains oil reserves of 3 MMbo (1.2 MMbo net to Bounty) in the Murta Formation which are being actively developed by Bounty and its partner Bridgeport Energy Limited. In 2009/10 the partners drilled four productive oil development wells the last of which was the Utopia 10 well.

Bounty announced on 8 December the successful drilling of Utopia 10 with 100% oil fluorescence over 7 metres from 1018 metres to 1025 metres BRT. The well was cased and during December 2010 the well was perforated over the interval 1017 to 1023 metres in the Murta zone. A fracture stimulation program was designed and successfully completed over that interval prior to the end year shutdown.

The well is now on a production test.

Due to rains and rig maintenance the drilling of the Utopia 11H oil development well was deferred and that well will now spud in late January - early February 2011.

Utopia 11H will twin the Ufouria 1 well down as far as 905 metres where 7 inch casing will be run and cemented. The directional section of the well will kick off at 920 metres and the main hole will be drilled north for up to 300 metres in the Murta zone towards Utopia 1. A slotted liner will then be installed followed by production tubing and a beam pump.

Reservoir modeling suggests that a horizontal well will substantially increase the oil production in comparison to an un-stimulated vertical well. The production results of Utopia 11H and the fracture stimulated Utopia 10 well will determine the optimum well design to develop the substantial remaining reserves in this field.

The location of the Utopia Field and these wells is shown on Map 1 below (see link):
http://www.abnnewswire.net/media/en/docs/65021-ASX-BUY-620986.pdf

Contact

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