Australian oil and gas exploration firm Buru Energy has agreed to acquire Australian independent Origin Energy's interest in the Canning basin in Western Australia.
Buru will consequently receive Origin's 50pc interest in exploration permits EP 129, EP 391, Ep EP 431, EP 436, and EP 428 — which includes the Rafael-1 conventional gas and condensate discovery. This will give Buru a 100pc stake in these permits , the firm said on 13 February. Buru currently holds 50pc in these permits. The transfer is likely to be completed by this year's second quarter, but remains subject to regulatory approvals from Australia's Department of Mines, Industry Regulation and Safety.
An independent expert report confirmed that Rafael potentially holds recoverable resources of over 1 trillion ft³ of high-quality gas and 20mn bl of condensate, Buru said. Buru and Australian LNG firm Transborders Energy are also conducting a pre-feasibility study for a floating liquefaction unit, with feedgas supplied from the Rafael discovery, to be completed by the first quarter of 2023.
Origin will also withdraw from its EP 457 and EP 458 joint ventures, selling its 40pc stake in each to the joint venture between Buru and Australian independent Rey. Buru will remain the permit operator, with its stake rising from 40pc to 60pc, while Rey will hold 40pc against 20pc before the transaction.
Origin will contribute up to $4mn under the agreement to conduct a 3D seismic survey of the Rafael discovery, with interpreted 3D seismic data required for appraisal drilling planned for next year. The survey will be carried out during the operating season this year, with Buru expecting field acquisition early in 2023.
Buru will provide Origin reimbursement payments of up to $34mn under the agreement, conditional on the achievement of key milestones in the Rafael discovery. These milestones include securing a production licence and a positive final investment decision.
The agreement allows Buru a "dominant position in the Canning Basin including not only the extensive hydrocarbon resources, but also the potential carbon capture and storage and natural hydrogen resources being developed through our GeoVault and 2H Resources subsidiaries," Buru chief executive officer Thomas Nador said.
Origin's decision to transfer its interest in the Canning Basin is in line with the sale of its stake in the onshore Beetaloo gas basin in the Northern Territory, as the firm aims to reach net zero emissions by 2050. Origin recently extended for a second time the exclusive due diligence period for its takeover by Canada-based asset management firm Brookfield and US energy investment firm EIG.
