Buru Energy has entered into a farmout agreement with Sabre Energy for the drilling of the Rafael oil target in the Canning Basin, Western Australia.
Sabre Energy will carry Buru Energy for $6 million for the costs associated with the drilling and testing of the Rafael exploration well to earn a 50 per cent interest in a commercial discovery and production licence, with Buru will retaining 50 per cent interest and operatorship.
Subject to commercial discovery, Sabre will pay Buru a further $1.5 million in recognition of prior exploration expenditures incurred in relation to the Rafael prospect.
Buru Energy chief executive officer Thomas Nador said the latest transaction is a significant milestone for the Rafael development.
“Buru received strong interest from the market for participation in the drilling of the high impact Rafael shallow prospect,” Nador said.
“Sabre’s proposal provides Buru with excellent value for the Rafael shallow prospect farmout and also offers significant strategic synergies with the Ungani partnership established earlier this year.”
Sabre Energy managing director Regie Estabillo said the transaction represents the company’s commitment to the Canning Basin.
“We are looking forward to the drilling program planned for us later this year and are quickly building our own organisational capability to support Buru as operator of Rafael Shallow, and our future operatorship of the Ungani oilfield,” Estabillo said.
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