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Bounty Oil and Gas (ASX:BUY) freezes shares ahead of capital raise

The Market Online Deal Room
ASX:BUY      MCAP $4.495M
21 September 2020 13:30 (AEDT)

Bounty Oil and Gas (BUY) has entered a trading halt ahead of a proposed capital raising.

The company expects to remain in a trading halt until Wednesday, September 23, unless the capital raise is announced earlier.

At this stage, it is uncertain what the capital raise funds will go towards.

The oil and gas explorer holds interests in assets across Queensland, South Australia and Western Australia.

Specifically, Bounty Oil and Gas has a 100 per cent interest in PL2 Alton which is located in the southern Surat Basin in southeast Queensland. PL2 was renewed last year and Bounty is focused on drilling three new well and workovers.

Bounty also has a 50 per cent interest in the ATP 2028 licence which is also located in the southern Surat Basin.

Bounty holds small interests in the PEL 35-49 and Naccowlah Block – both of which are located within the Cooper-Eromanga Basin which spans across southeast Queensland and South Australia.

The company is hoping to assert itself as a key player in the highly prospective Cooper-Eromanga Basin.

Bounty also has a 15 per cent interest in PEP 11 which covers 4576 square kilometres of the offshore Sydney Basin in New South Wales. This is part of a farm-in agreement with Advent Energy who owns 85 per cent of PEP 11.

According to the company, PEP 11 is its current focus where it is targeting up to 600 billion cubic feet net to Bounty.

Company shares last traded 3.85 per cent higher this morning for 2.7 cents.

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