Australia-based Bounty Oil & Gas has agreed to acquire PetroQuest Liberia Deep Water, gaining access to negotiations for a production sharing contract (PSC) covering Block LB-32 offshore Liberia.
PetroQuest holds a letter of engagement from the National Oil Company of Liberia, giving it the exclusive right to negotiate a contract with the Liberia Petroleum Regulatory Authority.
Block LB-32 is not currently covered by a granted licence or an executed PSC.
The proposed acquisition is subject to conditions including due diligence, shareholder and regulatory approvals, a capital raising of at least $2.13m (A$3m), and either execution of the PSC or confirmation of a satisfactory route towards its grant.
The parties must satisfy or waive the conditions by 31 December 2026, unless they agree another date.
Bounty has also received firm commitments for a placement of around A$3.55m. Tribeca Investment Partners, L1 Capital Global Opportunities Master Fund and S3 Consortium, also known as Stocks Digital, are cornerstoning the raising.
Block LB-32 covers 2,322km² in Liberia’s Harper Basin, with water depths ranging from around 1,500m to 4,200m. It is covered by roughly 656km² of 3D seismic data and 753 line-kilometres of 2D seismic data.
Bounty plans to license the relevant data from TGS before completing its technical review, estimating prospective resources and assessing prospects for a potential farm-out.
The company said its initial interpretation points to the Jupiter and Zeus deepwater fan prospects, although it has not yet reviewed the 3D data directly.
Bounty said that it will not publish a prospective resource estimate until an independent qualified evaluator has assessed the block.
Under the acquisition terms, Bounty will pay A$1.5m in cash and issue more than 863 million ordinary shares, alongside 86.3 million shares linked to a previous exclusivity fee.
Vendors may also receive up to one billion performance shares, with half tied to an independent report confirming at least 800 million barrels of P50 prospective resources and a geological chance of success of at least 30%, and half linked to a binding farm-out agreement.
If the PSC is not executed within 18 months of completion, Bounty said that it may seek to buy back and cancel the relevant securities, subject to shareholder approval.
Bounty holds interests in Queensland, the Sydney Basin and Western Australia’s Carnarvon Basin.
“Bounty Oil & Gas agrees deal for Liberia deepwater block” was originally created and published by Offshore Technology, a GlobalData owned brand.
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