Mitsubishi Acquires Interest in Buru Energy's Permits in Western Australia

Mitsubishi Corp. has acquired 50% of Buru Energy Ltd's natural gas and crude oil exploration permits in the Kimberley region of Western Australia.

In exchange for helping to Buru fund exploration in the area for natural gas and crude oil deposits, Mitsubishi had the right to take up to a 50% interest in Buru's exploration permits, which the Japanese conglomerate today exercised.

In 2011, the two companies discovered oil in Ungani and gas in Valhalla, of which Mitsubishi Corp. has acquired a 50% interest in all unconventional resources, such as shale gas, tight gas and shale oil, from Buru.

Mitsubishi Corp. and Buru will consider development options for any significant gas reserves including the supply of gas to the domestic gas market in Western Australia and supplying feed gas to existing or new LNG projects.

Mitsubishi Corp. plans to invest a total of more than A$100 million in the project, the company said in a statement.