Buru Energy, Mitsubishi units to swap Western Australia assets

Buru Energy Ltd., Perth, has moved to a 100% interest in Ungani oil field in the onshore Canning basin of Broome in Western Australia following a transformational deal with its joint venture partners Diamond Resources (Fitzroy) Pty. Ltd. and Diamond Resources (Canning) Pty. Ltd. Both Diamond companies are wholly owned subsidiaries of Mitsubishi Corp.

Buru Energy restarted production from Ungani field in March (OGJ Online, Mar. 10, 2017).

Based on the deal, Buru will gain Mitsubishi’s 50% interest in Ungani production leases L20 and L21 as well as Mitsubishi’s 50% interest in exploration permits EP 391, EP 431, EP 436, and EP 428.

In return, the Mitsubishi companies will gain Buru’s 50% interests in Canning basin permit EP 371 and in the application for a special authority STP-SPA-0065 and STP-AAA-0031.

Buru Chief Executive Officer Eric Streitberg says the asset swap enables each company to hone in on their respective corporate objectives by focusing on the areas where they have the most appropriate technical and commercial capability without having the corporate and commercial boundaries that existed in the earlier combine.

For Buru, the focus is on conventional oil and gas. The transaction means Buru will have 100% of the cash flow from Ungani field as well as 100% of the prospective exploration permits along the Ungani trend and exposure to the Laurel tight gas accumulation.