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- Buru Energy (BRU) and Roc Oil have agreed to end a Farm-in Agreement at three exploration permits in the Canning Basin near Broome
- The under the 2018 agreement Roc would earn 50 per cent interest on an exploration program due to be complete in June 2020
- Roc’s withdrawal will be effective from December 31, 2019 and the company will not pay any shortfall funding
- Meanwhile, Buru has granted Roc a back-in right to the Adoxa-1 well if flow testing confirms a hydrocarbon discovery
- Buru is trading 2.94 per cent higher, with shares selling for 17.5 cent each
Buru Energy (BRU) and Roc Oil have agreed to end a Farm-in Agreement at three exploration permits in the Canning Basin near Broome.
Roc will withdraw its 50 per cent interest in exploration permits EP 428, EP 436 and EP 391, meaning Baru now holds 100 per cent equity in those permits.
Under the 2018 Farm-In Agreement, Roc would earn 50 per cent interest on an exploration program due to be complete in June 2020. However, Roc will now withdraw from the Farm-In, effective from December 31, 2019.
The company will not be required to pay any shortfall funding and Buru will make a nominal consideration of $1 for the reassignment of the Farm-In permits.
In May 2018, the same time as the Farm-In agreement was made, Roc purchased a 50 per cent interest in the nearby Ungani oil field, also owned by Buru.
The company has clarified that Roc’s withdrawal from the Farm-In agreements will not affect the Ungani Joint Venture.
Meanwhile, Buru has granted Roc a back-in right to the Adoxa-1 well also in the Canning Basin, with a maximum three-year term.
The production licence is dependent upon whether flow testing confirms a hydrocarbon discovery at the well.
The licence would garner Roc 50 per cent interest and the company would be required to reimburse Baru for costs and payment of sole risk well premiums.
Baru is trading 2.94 per cent higher, with shares selling for 17.5 cents each at 11:41am.
