“We are advised that the chief ombudsman has concluded that he does not have the power to provide the remedy Bounty requires if his decision were to be in Bounty’s favour – an extension of the permit,” Bounty managing director Laurence Roe said.

“He has noted that it is open to Bounty to apply for an extension of the permit.”

Roe adds that if an extension is not granted, the company will seek advice about lodging an appeal to the High Court.

Earlier in the year, Bounty reported that processing of 2000km of 2D seismic shot over PEP 38215 last year was complete, but Crown Minerals had not agreed to requests for an extension to the time allowed to complete mapping and to drill in the permit. The company then sought an ombudsman's review to challenge this.

At the time, Bounty said it had provided a detailed response to this notice, but was "treated unfairly" by the Crown Minerals under the relevant regulatory guidelines.

Bounty then lodged an appeal on October 5 against Crown Minerals' decision to revoke the licence.

The company wanted the revocation suspended until the chief ombudsman’s recommendations were expected to be delivered earlier this month.

Partners in PEP 38215 are: Bounty Oil & Gas NL (90% - operator) and Albatross Energy Pty Ltd (10% - following completion of the Hardman Resources withdrawal).