GAS FROM KILIWANI NORTH TO SONGO SONGO PROCESSING PLANT TO BE TESTED THIS JANUARY

Australia’s Bounty Oil & Gas NL announced Thursday that the Gas Sales Agreement (GSA) with the Tanzanian Petroleum Development Corporation (TPDC) for its Kiliwani North gas field in Tanzania has been signed.

Bounty will start its first African gas production in Tanzania.

Participants in the Kiliwani North Development License are:

— Ndovu Resources Ltd. (Aminex) – 55.575 percent (Operator)

— RAK Gas LLC – 23.75 percent

— Bounty Oil & Gas NL – 9.5 percent

— Solo Oil plc – 6.175 percent

— TPDC – 5 percent

The Kiliwani North GSA is a “take or pay” type agreememnt and allows for the expected depletion of production from the well over time. In each contract year TPDC will be required to purchase, take delivery of or pay for a pre-determined volume of gas. In the event that TPDC elects not to take delivery of or pay a pre-determined volume, it will pay for the equivalent of 85 percent of the minumum daily quantity of gas to be supplied, initially set at 20 million standard cubic feet per day (MMscf/d) and adjusted each year in accordance with the terms of the GSA. Gas from Kiliwani North will be supplied to the recently completed Songo Songo gas processing plant.

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