Buru, Rey, increase stakes in Canning Basin permits

ASX-listed Buru Energy has completed the acquisition of a further 22.5% interest in two exploration permits in the Canning hydrocarbon Basin near Broome in WA, from Mitsubishi Corporation for $720,000.

This transaction takes Buru’s operating interest in the two permits to 60%.

Permits EP 457 and EP 458 are considered to be prospective for conventional oil in a number of formations with the 2015 Victory-1 well recovering oil from the Laurel Formation.

The permits also contain the potential for an unconventional tight wet gas play in the Laurel.

Other potential trends include the Ungani Dolomite, the Reeves Formation and the deeper carbonate sections such as the Nullara and Pillara formations.

Partner Rey Resources has also increased its stake in the two permits by 15% to 40% by paying $480,000.

Buru is free carrying 6.664% of Rey’s interest until commercial production is achieved.

The company previously flagged that the joint venture will review the overall prospectivity of the permits with future work likely to include the reprocessing of existing 2D seismic data and potentially the acquisition of new seismic data this year.

Any activity in these permits will add to Buru’s busy schedule for 2019, which includes the drilling of two production wells and up to four exploration wells elsewhere in the Canning Basin.