Buru Energy has reached an agreement to assume ownership of Roc Oil’s 50 per cent interest in the Canning Basin exploration permits EP 428, EP 436 and EP 391 (the farm-in permits) in Western Australia.
Roc has withdrawn its ownership of the stake under the terms of the 2018 farm-in agreement between the two companies.
Under the agreement, Roc would have earned a 50 per cent interest in the farm-in permits by carrying Buru through an agreed exploration program by June 30, 2020, or it could withdraw at that time.
It has now been agreed that Roc will withdraw from the farm-in permits effective December 31, 2019.
Buru executive chairman Eric Streitberg said together with its existing 100 per cent and majority owned permits, the company now controlled a gross 22,000 square kilometres of highly prospective contiguous acreage in the Canning Basin.
“The Canning Basin is one of the least explored onshore basins in Australia with already producing conventional oil resources and large-scale wet gas resources,” Streitberg said.
“This is a unique situation that will be highly attractive to companies seeking both scale and running room, and it is intended to commence a wide ranging farmout process early in 2020 once a prospect and regional scale technical review is complete.
“The Basin required further focussed exploration to realise its potential and we are confident this combination of commercial, geological and operational components will allow us to successfully drive this forward.”
Consistent with the withdrawal terms of the farm-in agreement, Roc will not be required to provide any shortfall funding as at the date of the withdrawal, and its reassignment of the farm-in permits to Buru is for nominal consideration only.
Roc will retain its 50 per cent interest in the producing conventional Ungani Oilfield. Buru, as operator, will continue to work closely and co-operatively with Roc in its aligned Ungani joint venture.
Upon customary statutory approvals and registration of the transfers, Buru will resume 100 per cent ownership of the three Canning Basin key permits.
The permits are central to both the Ungani Dolomite trend and the emerging Reeves clastics play and contain several world class prospects including Rafael, which Buru plans to drill in its next exploration campaign.