Oil Basins Comments on Rey's Acquisition of 50% Stake in WA's Derby Block

Oil Basins Limited (OBL) made the following ASX announcement Monday to update shareholders and investors on matters pertaining to Western Australia (WA) Petroleum Exploration Permit EP487 (Derby Block) in the Canning Basin.

On Nov. 28, Rey Resources Limited announced that it had entered into a highly conditional potential transaction with Backreef Oil Pty Ltd (BOPL) for a 50 percent interest in the Derby Block.

The Company wishes to make the following comments:

• BOPL does not presently hold a 50 percent beneficial interest in the Derby Block
• OBL has outlined its legal position in the recent OBL AGM presentation dated Nov. 25 and is waiting for the WA State Administrative Tribunal (SAT) to deliberate on whether BOPL wrongfully exists on title – quite apart from whether any percentage interest is held beneficially by BOPL
• SAT is expected to hand down its decision on or before Jan. 27, 2015
• The proposed Rey transaction presently has no currency as it is highly conditional, and it is not clear whether it is made by BOPL with the approval of Buru Energy Limited
• If the BOPL deal with Rey is with Buru’s approval or direction, and the BOPL deal with Buru is to expire or be varied, then OBL seeks Buru to change as soon as possible all ASX releases, presentations, maps, website and prospective potential resources relating to its claimed 50 percent interest in EP487 (Derby Block)