Mineral Resources (MRL) and Buru Energy have been awarded two gas exploration permits in the Perth and Northern Carnarvon Basins as part of the latest Western Australia Government petroleum acreage release.
Permit L20-1 is located in the Northern Carnarvon Basin and spans an area of 6,293km2, and was a joint bid by MRL and Buru.
As a result, the two companies will now form a 50:50 joint venture partnership, with Buru as the permit operator.
This permit is immediately adjacent to MRL’s proposed Ashburton infrastructure development including the Bungaroo and Kumina mining projects and is strategically located close to existing gas infrastructure including the Tubridgi gas storage facility, the Dampier-to-Bunbury natural gas pipeline and the Wheatstone and Macedon gas processing plants.
In October 2020, Buru and MRL applied for bid block L20-1, with the existing infrastructure being a major positive for commercialisation of any hydrocarbon discoveries.
Buru executive chairman Eric Streitberg said the company is delighted that it has been able to apply its hard-earned Canning Basin geological knowledge and operating experience to a new area close to existing infrastructure.
“We are equally delighted to have been joined in the application by Mineral Resources which has an outstanding reputation for bringing projects to fruition on budget and on time,” Streitberg said.
“This new exploration area complements our Canning Basin areas where we are about to start an exciting drilling program and we look forward to working with the various stakeholders in this new area, and getting boots on the ground to find some oil and gas.”
In addition, MRL was also awarded permit L20-4, which is located in the highly prospective Perth Basin and host to several significant recent conventional gas discoveries.
The acquisition spanning 2,289km2 makes MRL the largest petroleum acreage holder in the Perth Basin, operating permits totalling more than 7,200km2 .