Bounty Oil & Gas NL announced that seismic reprocessing and preliminary AVO analysis has significantly upgraded the prospectivity and lowered the risk of Dorado lookalike drilling targets within the Cerberus Project offshore Carnarvon Basin WA. Seismic section over Cerberus showing Stork A with brighter intervals possibly associated with hydrocarbon sands below the claystone canyon (white edge) and Amos, a series of bright intervals also potentially hydrocarbon sands sealed against the same canyon feature. The Drilling Program has significantly matured since Bounty and Coastal first entered into the Farmin Agreemen.

Coastal is a private company backed by oil industry veterans including Ted Jacobson as Director. Mr. Jacobson oversaw transformative farmouts and oil and gas discoveries during his tenure with Carnarvon Petroleum and Tap Oil which included the success of Dorado, and now the subject of follow up drilling currently at Pavo-1. Bounty has paid funding under the Agreement into a dedicated account jointly managed by Bounty and Coastal with Coastal and Bounty jointly overseeing work that will mature the Drilling Program. That Program now consists of two firm wells and one contingent well.

All wells will target structures that are comparable in size to Dorado (as well as Pavo-1 currently being evaluated and Apus-1 to be drilled shortly after), being between twenty (20) and thirty-five (35) square kilometres in size. The first firm well has been designated from the Stork Area in EP 475, with a well either dedicated to Stork or the Amos prospect. The latter being a shallower large feature over 30 square kilometres in size defined by preliminary AVO analysis and not previously identified on the vintage 3D seismic data.

A newly identified second target is called Belfon in EP 491 which is a faulted horst block with targets at both the Permian and Triassic geological levels. Both the Triassic and Permian targets cover an area over 20 square kilometres. A contingent well will target a structure called Expanse within EP 490, a faulted Triassic fault block where drilling this target will depend on success of the firm wells.

Expanse and Belfon are located in close proximity. This Program forms the foundation of a Request for Proposal ("RFP") which has now been issued to the rig market. The RFP will allow Coastal and Bounty to negotiate commercial terms for entering into a rig contract with indicative timing of fourth quarter of 2022 conditional on regulatory approvals.

In parallel with the RFP, well engineering, environmental permitting, seismic analysis, stakeholder engagement and complimentary work are being undertaken to mature drilling the targets. As part of de-risking the targets for drilling, seismic inversion and accompanying AVO analysis is expected to be completed by end March. During this timeframe prospective resources and the probability of success for the above Cerberus targets are being reviewed and will be released to the ASX in due course.