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Farm-in agreement for Ungani

farm in Buru

Buru Energy has entered into a farm-in agreement with Sabre Energy for the Ungani oil field in Western Australia’s Canning basin.

Under the agreement, Sabre Energy will earn a 70 per cent interest in the Ungani oil field, which includes a $6 million farm-in carry, with Buru Energy retaining a 30 per cent working interest.

The transaction also includes a transition of operatorship from Buru to Sabre, a contribution by Sabre of $1 million dollars towards the cost of restarting production and a $5 million carry towards the drilling of the Mars well.

Buru Energy chief executive officer Thomas Nador said the company was pleased to have Sabre Energy as a future joint venture partner and operator of the Ungani field.

“Sabre’s approach to exploration, development and production, their team credentials and experience, and entrepreneurial spirit will be a great value add for the asset,” Nador said.

“I look forward to the months ahead as we firm up our plans for a production restart at Ungani and prepare to drill the high potential Mars prospect as future production backfill for the Ungani facility later this year.”

Sabre Energy managing director Regie Estabillo said the company believes the Canning basin represents one of the last frontiers of onshore oil and gas exploration in Australia.

“I look forward to working with the Buru Energy team to collaboratively develop a structured program aimed at generating near-term cashflows, and recommencing oil exploration at Mars.”

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