Buru Energy, Mitsubishi Strike Canning Basin Gas Deal (Australia)

Buru Energy said that it has today entered into an agreement with the Western Australian State Government (State Agreement) to provide long term tenure over the Company’s most prospective acreage and facilitate the development of a domestic gas project and pipeline and, in due course, an LNG development, once sufficient gas reserves are identified.

Highlights

– Buru and Mitsubishi Corporation (MC) have executed a State Agreement governing the exploration and development of exploration permits EP 371, 391, 428, 431 and 436 (Permits) for 25 years, with an option to extend for a further 25 years.

– The State Agreement is unique, being the first State Agreement covering onshore exploration and development, recognising the unique scale, prospectivity and strategic importance of Buru and MC’s Permits in the Canning Superbasin.

– The State Agreement provides a mechanism to relieve the Permits from their existing relinquishment obligations until 31 January 2024, preserving the core areas of the Laurel Formation gas play and the Ungani oil trend.

– The State Agreement allows appraisal work for gas discoveries to be credited against ongoing statutory work commitments for adjacent Permits, allowing work programs to be optimised for the efficient and timely development of the Permits’ gas resources.

– The Department of State Development takes on a lead agency role in the development of a domestic gas pipeline, facilitating the timely and effective approval of a domestic gas project providing energy security for Western Australia.

– The State Agreement provides a framework for the development and facilitation of a project to deliver gas to an LNG facility in the Pilbara once sufficient gas has been identified to sustain the domestic gas project.

Commenting on the State Agreement, Buru’s Executive Director, Mr Eric Streitberg, said:

“Buru and Mitsubishi have undertaken an extensive exploration and appraisal program in the Canning Superbasin over the past three years. This program has resulted in the identification of potentially world class gas resources, a significant new oil field, and a trend of oil prospectivity. The State Agreement provides a mechanism for us to continue to explore and develop our acreage in the most efficient way.

Our goal is the development of a domestic gas project delivering gas into the existing domestic gas network in the Pilbara, promoting long term energy security for Western Australia. The State Agreement facilitates this. It is an emphatic statement of the strategic importance of the Canning Superbasin and the long term nature of this project. We’re very proud that this has been recognised by the State and they have taken the unique step of providing a State Agreement for onshore exploration and development.”

[mappress]

LNG World News Staff, November 7, 2012; Image: Buru Energy