15th November, 2010

ASX/MEDIA RELEASE

PEP 11 – Drilling Regulatory Approvals

Semi submersible rig “Ocean Patriot” courtesy of Diamond Offshore Inc

Bounty Oil & Gas NL (“Bounty”) announces an update on preparations to drill the New Seaclem 1 exploration well in PEP 11. Bounty advises that farmin partner; Advent Energy Ltd (Advent) has received approval from the designated authority; the NSW Department of Industry & Investment ( operating as Industry & Investment NSW ) (“I&I NSW”) for the drilling of New Seaclem 1, offshore Newcastle, NSW.

Approval has been granted for the Well Operations Management Plan (WOMP) under the Petroleum (Submerged Lands) (Management of Well Operations) Regulations 2004, and the Environment Plan and Oil Spill Contingency Plan under the Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009.

2 The approvals follow lodgement of applications and protocols by the operator Asset Energy Pty Ltd (a wholly owned subsidiary of Advent Energy) and an independent review process conducted by I&I NSW as the designated authority.

New Seaclem-1 Well Summary

The New Seaclem 1 well will be drilled 55km east of Newcastle within Commonwealth Waters.

The well will be the first exploration well to be drilled offshore New South Wales.

New Seaclem-1 will target natural gas in the Great White and Marlin stratigraphic prospects contained within the Cainozoic age sedimentary sequence. The specific gas targets are within interpreted Tertiary age sandstone reservoirs in that sequence.

Further details on the prospects and targets are set out below.

The well will be drilled to a total depth of 826 metres with the Ocean Patriot semi submersible rig

Tanvinh Resources an independent consultant to Advent has reported undiscovered prospective gas in place resource estimates for Great White of 1.16 Trillion cubic feet (Tcf) and for Marlin of 2.97 Tcf at the P50 or ‘best estimate’ level under Society of Petroleum Engineers (SPE) guidelines. Additionally, an independent site survey contractor’s analysis of site survey data over the Marlin and Great White prospects states that the geological sequence immediately above the interpreted Permo-Triassic unconformity is "likely" to contain zone(s) of gas.These will be the sequences tested by the well. Bounty is free carried for all costs of the New Seaclem 1 well. Upon completion of the well Advent will increase its working interest in PEP11from 25% to 85%. Bounty will thereby reduce their interest from 75% to 15%.

Seismic and Geological Information on New Seaclem-1 Location

The Great White and Marlin prospects are vast, gently eastward dipping stratigraphic prospects mapped on the basis of the middle and deep reverse polarity seismic events identified from seismic data recently reprocessed by Fugro Australia. Very strong and anomalous seismic amplitudes are also observed coincident with the reverse polarity seismic reflectors. Excellent migration pathways are observed on the seismic data and seismic velocity reductions are associated with the prospects, indicating a reduction in density from the surrounding sediments. The main reservoir targets are interpreted to be Tertiary sandstones.

The Great White prospect sits below 390 metres from sea level and covers an area of up to 574 km2. The seismic geometry indicates slope fans or turbidite sands onlapping the eastern flanks of the Sydney Basin Offshore Uplift.

The seismic geometry of the Marlin prospect (below 530 metres from sea level) indicates incised valley channel fills/sub-marine canyon sands overlying the Permo-Triassic age unconformity. The Marlin prospect has been mapped to cover up to 761 km2.

See location map and diagrams below.

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For further information, please contact:

Bounty is an Australian ASX listed oil producer and explorer. Its core petroleum production and exploration assets are located in the Cooper/Eromanga Basins and in the Surat Basin in Queensland and South Australia. Its growth assets are spread over a number of high impact projects in Australia and Tanzania where it is exploring for oil and gas. In Australia it is a participant in PEP 11, Sydney Basin with up to 16 trillion cubic feet (TCF) gas potential and in other permits. In Tanzania it is a participant in the Kiliwani North gas discovery and is exploring additional gas pools with up to 1 TCF potential. Bounty has reserves and resources approaching 4 million barrels of oil equivalent.

[Information in this release that relates to or refers to petroleum or hydrocarbon reserves or resources is based on information compiled by Mr Philip F Kelso the CEO of Bounty Oil & Gas NL. Mr Kelso is a Bachelor of Science (Geology) and has practised geology and petroleum geology for in excess of 20 years. He is a member of the Petroleum Exploration Society of Australia and a Member of the Australasian Institute of Mining and Metallurgy. He has consented to the reporting of that information in the form and context in which it appears in this release.]

Graham Reveleigh Chairman Tel: +617 4033.1805 Email: mining@cairns.net.au

Philip F Kelso Chief Executive Officer Tel:+612 9299 7200 Email: geo@bountyoil.com Website: www.bountyoil.com