Bounty Oil & Gas NL (ASX:BUY) announced on 22 September 2026 that it has entered into a binding share sale agreement to acquire PetroQuest Liberia Deep Water LLC, providing exposure to the Block LB-32 deepwater exploration opportunity offshore Liberia. The transaction represents a strategic expansion into the Harper Basin, where Bounty aims to evaluate a large-scale exploration opportunity supported by existing seismic coverage and potential farm-out pathways. buy

The Acquisition is linked to PetroQuest’s existing letter of engagement with the National Oil Company of Liberia (NOCAL), under which NOCAL will negotiate a Production Sharing Contract (PSC) with the Liberia Petroleum Regulatory Authority (LPRA) for Block LB-32. Bounty has also received firm commitments for a Placement of approximately A$3.55 million to support the transaction, Block LB-32 activities, seismic work, existing projects and Working Capital requirements. buy

Block LB-32 Expands Bounty’s Offshore Exploration Portfolio

The proposed acquisition provides Bounty with exposure to Block LB-32, a deepwater exploration block located in the Harper Basin offshore the Republic of Liberia.

Block LB-32 covers approximately 2,322 square kilometres and is located in water depths ranging from around 1,500 metres to 4,200 metres. The block is positioned adjacent to other offshore exploration acreage in the Harper Basin and near the Cape Palmas transform boundary separating the Harper Basin from the Côte d’Ivoire basins. buy

PetroQuest holds a letter of engagement issued by NOCAL, which provides the exclusive right to negotiate a PSC over Block LB-32. The PSC process remains subject to negotiations between PetroQuest, NOCAL and LPRA, as well as approval by the Liberian Parliament. buy

Bounty stated that PetroQuest expects PSC negotiations and parliamentary approval could potentially be completed by January 2027 or shortly thereafter, although completion remains subject to regulatory processes. buy

Deepwater Fan Prospects Form Core Exploration Focus

The primary exploration focus within Block LB-32 is the Upper Cretaceous basin floor fan play.

Initial interpretation indicates that the block contains portions of the Jupiter and Zeus deepwater fan prospects, along with additional leads. These targets have been identified through existing seismic interpretations, although Bounty has not yet completed its own direct review of the underlying seismic data. buy

Block LB-32 is covered by approximately 656 square kilometres of 3D seismic data and approximately 753 line-kilometres of 2D seismic data. The 3D dataset forms part of the broader TGS Sunfish 3D survey, which covers approximately 6,167 square kilometres across the Harper Basin region. buy

Bounty plans to access the LB-32 seismic dataset as part of its Due Diligence process, resource evaluation work and preparation for potential farm-out discussions. buy

Geological Analogues Support Further Evaluation

Bounty’s assessment of Block LB-32 is supported by geological comparisons with other deepwater transform Margin discoveries.

The company highlighted similarities between the Liberia–Sierra Leone margin and the Guyana–Suriname margin, including comparable geological histories, source rock intervals and Upper Cretaceous deepwater fan reservoirs. buy

The company also referenced deepwater discoveries across regions including Guyana, Suriname, Ghana, Côte d’Ivoire, Senegal, Namibia and South Africa where similar fan systems have contributed to exploration success. buy

However, Bounty noted that geological analogues do not guarantee exploration success and that the Harper Basin basin floor fan play remains undrilled. buy

Seismic Data Acquisition and Farm-Out Preparation Become Key Next Steps

A major near-term focus for Bounty is obtaining and evaluating the available seismic data.

The company stated that the TGS seismic data was acquired between 2008 and 2013, with 2D seismic reprocessed in 2024 and 3D seismic undergoing reprocessing in 2026 using updated techniques.

Bounty believes the quality and coverage of the dataset could assist in defining potential drill-ready prospects for future farm-out discussions. The company is progressing negotiations regarding commercial terms to acquire the seismic data. buy

The company has also appointed strategic advisor Dave Wall from GBA Capital to assist with maximising value from existing Assets and the proposed Block LB-32 acquisition. buy

Placement Supports Acquisition and Project Advancement

Alongside the PetroQuest acquisition, Bounty secured firm commitments for a placement of approximately A$3.55 million.

The placement was cornerstoned by Tribeca Investment Partners, L1 Capital Global Opportunities Master Fund and S3 Consortium. buy

Funds raised are intended to support cash consideration associated with the acquisition, Block LB-32 costs including PSC activities and seismic reprocessing, ongoing existing projects, Transaction Costs and general working capital.

The funding provides Bounty with additional capacity to progress the transaction and evaluate the offshore Liberia opportunity.

Risks and Uncertainty Factors

The Block LB-32 opportunity remains subject to several regulatory, technical and exploration uncertainties.

Completion of the PetroQuest acquisition depends on satisfaction of transaction conditions, while the PSC pathway requires successful negotiation, regulatory approval and parliamentary ratification. buy

Bounty has not yet completed its own interpretation of the underlying seismic dataset and has not reported prospective resource estimates for Block LB-32. Further technical evaluation, seismic analysis and independent assessment are required before resource potential can be determined. buy

Deepwater exploration also carries risks associated with drilling success, capital requirements, operational execution and future development decisions.

What to Watch Ahead

Investors may continue monitoring Bounty Oil & Gas’ progress across the Liberia expansion strategy.

Key areas of focus include:

  • Completion of the PetroQuest acquisition.
  • Progress of Block LB-32 PSC negotiations and approvals.
  • Access and interpretation of the TGS seismic dataset.
  • Identification of potential drill-ready prospects.
  • Farm-out discussions with potential exploration partners.
  • Further updates on Bounty’s existing oil and gas projects. buy

Bounty Oil & Gas’ entry into Block LB-32 represents a strategic expansion into deepwater Liberia exploration. The company is now focused on completing transaction requirements, advancing technical evaluation and assessing potential Partnership pathways for the offshore opportunity.

Disclaimer: Bounty Oil & Gas NL (ASX:BUY) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any recommendation concerning Company as contained in this article, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this article.