Buru to acquire Origin's Canning basin JV interests
ASX-listed Buru Energy has agreed to acquire Origin Energy’s joint venture interest in the Canning basin permits, which include the Rafael conventional gas and condensate discovery, it said on February 13.
Under the terms of the transaction, Buru will receive Origin’s 50% participating interest in exploration permits EP 428, which contains the Rafael-1 conventional gas and condensate discovery, EP 129, EP 391, EP 431 and EP 436 with Buru owning 100% of these permits.
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Separately, Origin has agreed to withdraw from the EP 457 and EP 458 joint ventures and assign its interests back to the Buru-Rey Resources joint venture. Origin’s 40% interest will be assigned back to Buru and Rey equally.
In December 2020, Origin agreed to farm into seven Canning basin exploration permits held by Buru and Rey, to earn interests ranging from 40% to 50%. Buru remained the operator of the permits with working interests across the basin ranging from 40% to 100%. The terms of the farmins required Origin to majority fund a two-well drilling program and the acquisition of a regional scale seismic programme.
“Since Origin’s decision in June last year to not support the proposed 2022 Canning basin field work programme, and then its September announcement that it intends to exit upstream exploration on strategic grounds, Buru has worked relentlessly to minimise the impact of this decision on its Canning Basin assets, and to maintain momentum for the appraisal and commercialisation of its flagship Rafael conventional gas and condensate development,” CEO Thomas Nador said.
As part of the agreement, Origin will provide Buru with up to A$4mn of the required funding for a 3D seismic survey at Rafael. The deal is in exchange for a future, capped reimbursement of costs linked to gas production success.
Origin in September last year announced its decision to divest its interest in the Northern Territory’s Beetaloo basin, and exit its upstream exploration permits not related to Australia Pacific LNG (APLNG). In November, Origin received A$18.4bn ($11.8bn) takeover proposal from a consortium led by Canadian fund managers Brookfield Asset Management.