Bounty Oil And Gas NL (ASX:BUY) Acquired Naccowlah Block In Southwest Queensland

Sydney, Jan 31, 2011 AEST (ABN Newswire) - Bounty Oil & Gas NL (ASX:BUY) (PINK:BYOGF) ("Bounty") announces that it has completed the acquisition of a 2% interest in the well known Naccowlah Block announced to ASX on 16 August 2010.

Bounty will be accruing to its interim financial statements the oil revenue from Naccowlah Block generated from 1 April 2010 (the Effective Date of the transaction for adjustments) until 31 December 2010.

Features of the asset are:

- Gross revenue of A$707,000 since the Effective Date

- 40 bopd gross oil production

- an interest in ATP 259P, and associated production licences including licences over the Jackson, Jackson South and Watson Oil Fields operated by Santos

- an interest in the production facilities and related pipelines around Jackson which also generate oil handling revenues from third party oil producers

- estimated A$700,000 annual net operating revenue before capital costs at current oil prices- 150,000 barrels of 2P oil reserves to Bounty's interest

- additional gross land interests of 3112 km2 (769,140 acres)

- numerous additional development and near field drilling opportunities

- a major 3D database

Since the Effective Date Bounty has participated at its working interest in 2 successful oil wells in the Block. Both wells were near field exploration tests of four way dip closures located on 3D seismic.

Watson West 1 intersected 1.8 - 2.4 metres of net pay within a gross oil column of 7.3 metres in the Birkhead Formation and;

Irtalie East 1 intersected 6 metres of net oil pay in the Hutton Formation.

Both wells have been cased and suspended as future oil producers.

Three additional development and appraisal wells are planned for 2011 all located using the extensive 3D seismic database which comes with the Naccowlah Block acquisition.

Commenting; Bounty's CEO Philip Kelso said:

"Completion of the Naccowlah Block acquisition is a further step in Bounty's core oil development strategy in the Cooper and Surat Basins and has lifted oil revenues to around A$1.6 million per annum. Naccowlah Block production was affected in mid 2010 as a result of flooding in the Cooper Basin but Bounty's production share in the last 2 months has grossed over A$100,000 per month.

The 2P oil reserves have been acquired at A$6 per barrel and we believe there will be additional drilling opportunities in the Block over and above the 3 wells in 2011.

Bounty is pursuing other core oil business opportunities in Australia while continuing the high impact exploration strategies represented by upcoming drilling in the Nyuni Block, Tanzania and ongoing assessments of A/CP 32 Timor Sea and PEP 11, Sydney Basin."

For the complete Bounty Oil & Gas NL announcement including location maps, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/65107-ASX-BUY-622080.pdf

Contact

Graham Reveleigh Chairman Tel: +61-7-4033-1805 Email: mining@cairns.net.au Philip Kelso Chief Executive Officer Tel: +61-2-9299-7200 Email: geo@bountyoil.com http://www.bountyoil.com