PERTH: Buru Energy Limited has reached agreement with Roc Oil (Canning) Pty Limited to assume 100% equity stake in three Canning Basin exploration permits EP 428, EP 436 and EP 391 (Farm-in Permits).

Roc Oil has agreed to withdraw from its current 50% interest in Canning Basin exploration permits. The withdrawal is covered by the terms of the 2018 Farm-in Agreement between Buru and Roc whereby Roc was to earn a 50% interest in the Farm-in Permits by carrying Buru through an agreed exploration program by 30 June 2020, or it could withdraw at that time.

It has now been agreed that Roc will withdraw from the Farm-in Permits effective 31 December 2019. Consistent with the withdrawal terms of the Farm-in Agreement, Roc will not be required to provide any shortfall funding as at the date of withdrawal, and its re-assignment of the Farm-in Permits to Buru is for nominal consideration only.

 Roc will retain its 50% interest in the producing conventional Ungani Oilfield, and Buru as operator will continue to work closely and co-operatively with Roc in our aligned Ungani Joint Venture with a view to maximizing value for all stakeholders.

Upon customary statutory approvals and registration of the transfers, Buru will therefore resume 100% ownership of these three key permits in the Canning Basin. The permits are central to both the Ungani Dolomite trend and the emerging Reeves clastics play and contain several world class prospects including Rafael, which Buru plans to drill in its next exploration campaign.

Executive Chairman Eric Streitberg commented: “Together with its existing 100% and majority owned permits, Buru now controls a gross 22,000sq kms of highly prospective contiguous acreage in the Canning Basin. The Canning Basin is one of the least explored onshore basins in Australia with already producing conventional oil resources and large scale wet gas resources. This is a unique situation that will be highly attractive to companies seeking both scale and running room, and it is intended to commence a wide ranging farm out process early in 2020 once a prospect and regional scale technical review is completed. The Basin requires further focused exploration to realise its potential and we are confident this combination of commercial, geological and operational components will allow us to successfully drive this forward.”

Leave a Reply

Your email address will not be published.