Buru sells interest in Carnarvon basin assets for A$5mn

Western Australia-focused Buru Energy on August 14 announced the sale of its interests in the onshore Carnarvon basin to Energy Resources (MinRes) for A$5mn ($3.4bn).

Buru's interests in exploration permit EP 510 and exploration permit application areas L22-2 and L22-4, where the company holds a 25% non-operated working interest in a joint venture with MinRes (operating with a 75% stake), are being sold.

The sale is unconditional, and the cash proceeds will be available to Buru imminently. The formal transfer of titles is subject to all the customary regulatory consents and approvals.

Buru said that the decision to divest these interests aligns with its strategic realignment and focus on its core oil and gas activities in the Canning basin. The recent successful flow test of the Rafael 1 well, along with subsequent resource certification for Rafael as a conventional gas and condensate resource, has sharpened the company's focus on the Canning basin, it said.

Earlier this year, Buru acquired Origin Energy’s joint venture interest in the Canning basin permits, which include the Rafael conventional gas and condensate discovery. 

“The sale of Buru’s interests in the onshore Carnarvon Basin to MinRes represents another important milestone in focusing our portfolio, strengthening our balance sheet, and positioning for the future,” Thomas Nador, Buru's CEO, said.

“The sale will simplify the Company’s oil and gas portfolio and enable it to allocate additional capital and resources toward its strategic priority to develop the first proven significant conventional gas and condensate discovery in the Canning Basin of Western Australia,” he added.

With the completion of this transaction, MinRes will assume 100% ownership of the permit and application areas.