Buru Acquires 100% Ownership in Oz Canning Basin Permits
Sydney-listed Buru Energy has reached an agreement with Roc Oil where the latter will withdraw from its current 50% interest in Western Australia’s Canning Basin exploration permits EP 428, EP 436 and EP 391 effective December 31, Buru said December 5.
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 June 30, 2020, or it could withdraw at that time.
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 reassignment of the farm-in permits to Buru is for nominal consideration only, Buru said.
“Together with its existing 100% and majority-owned permits, Buru now controls a gross 22,000km2 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,” Buru chairman Eric Streitberg said.