Origin Energy and Buru Energy have inked a farm-out agreement for an exploration program on two Canning Basin permits in Western Australia.
The program will focus on a $3 million seismic acquisition survey targeting large-scale drilling prospects within the EP457 and EP458 permits.
Buru stated that exploration on the permits was relatively scarce, but existing data and modelling had identified potential for several new play types.
They are located in the southern flank of the Fitzroy Graben, straddling the Ungani trend, the Laurel Basin-centred gas accumulation and the Goldwyer oil and gas unconventional shale.
Buru chairman Eric Streitberg said these plays required a modern, high quality seismic grid to transform them from concepts to prospects.
“The funding from Origin will allow us to acquire this seismic data in a timely and technically robust manner,” Streitberg said.
“Origin (is) a well credentialled and experienced Australian energy company and the joint venture (welcomes its) technical and financial support to unlock the potential of these permits.”
Origin will pay the first $3 million of expenditure towards the cost of acquiring the Celestine seismic survey.
It can withdraw or fund another activity in the permits by spending an additional $6 million of drilling expenditure to maintain its 40 per cent interests.
Participated by Buru’s joint venture partner in the permits, Rey Oil and Gas will also hold a 20 per cent interest while Buru and Origin will each hold a 40 per cent interest.
The partners aim to undertake the survey during the 2021 Canning Basin field season in conjunction with seismic surveys planned by Buru, which will remain operator of the permits and respective JV agreements, in adjacent permits.
Origin executive general manager Integrated Gas, Mark Schubert, said: “Origin will now hold positions in three large prospective onshore basins – the Beetaloo, Canning and Cooper-Eromanga – giving us exposure to conventional and unconventional gas plays and what we believe are the most prospective shale formations in Australia.”
Buru’s Streitberg said the agreement followed an “extensive and competitive” farm-out process during the coronavirus pandemic season.