Bounty Oil and Gas has entered into a binding agreement to acquire PetroQuest Liberia Deep Water, securing rights to pursue an offshore exploration contract in Liberia's Harper Basin.
The target entity holds an engagement letter with the National Oil Company of Liberia to negotiate a production sharing contract alongside the Liberia Petroleum Regulatory Authority for Block LB-32.
Covering 2,322 square kilometres in water depths ranging from 1,500 metres to 4,200 metres, the deepwater acreage represents the final unlicensed block in the basin.
Following the execution of commercial terms outlined in the preliminary agreement, PetroQuest expects contract negotiations and parliamentary ratification to conclude by January 2027.
To finance the transaction and fund initial exploration work, Bounty Oil and Gas received firm commitments to raise approximately AU$3.548 million ($2.52 million) through a two-tranche placement managed by Oakley Capital Partners.
Upfront consideration comprises AU$1.5 million in cash and over 863 million ordinary shares, alongside two performance tranches totalling one billion shares contingent on independent resource certification and securing a farm-out partner.
Seismic data indicates that the block contains portions of the undrilled Jupiter and Zeus deepwater fan prospects, which sit within the Upper Cretaceous play fairway.
The Sydney-based explorer announced plans to license modern 3D seismic coverage from TGS to complete technical due diligence and delineate prospective drilling targets.