Buru Energy Limited, an Australia-based oil and gas exploration and production company, announced Monday that it has entered into binding agreements with Mitsubishi Corporation (MC) and Apache Energy Limited (Apache) pursuant to which an Apache subsidiary will farm-in to a number of the joint venture’s exploration permits in Western Australia's Canning Basin. The permits principally cover the Goldwyer Shale areas of the joint venture’s portfolio, and are prospective for shale oil and gas as well as for conventional sandstone reservoirs, particularly in the southern areas.
Under the agreements, subject to satisfaction of certain conditions:
Buru will remain as the operator of the Coastal Permits and Acacia Permits but under the terms of the agreements, Apache will, subject to completion of the relevant work programs, have the right to assume operatorship following a transition period. In the event that Apache elects to assume operatorship, Buru will continue to be heavily involved in the community affairs and engagement programs.
Further details of the transactions are set out in the attachment.
Apache’s entry into the Canning Basin provides a strong endorsement of Buru and MC’s exploration and appraisal activities to date and their shared belief in the significance of the region as a potential major energy supplier to Western Australia.
Commenting on the transaction, Buru’s Managing Director Dr Keiran Wulff said:
“Following on from the exploration success of the last few years, Buru has set out to ensure that the Company has the capability to fully explore and commercialize our extensive assets in the Canning Basin whilst also focusing the Company’s efforts on delivering value from its Ungani trend and potential gas assets in its core areas. This farmin by Apache is an excellent result and we are delighted that Apache have agreed to join us in the Canning Basin. This
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