Buru Scores Additional Western Australia Oil and Gas Exploration Permits

Perth (Australia): Buru Energy, a Perth-based oil and gas producer, has been given a boost with the awarding of two highly prospective petroleum exploration permits in Western Australia (WA's) onshore Carnarvon Basin. The permits will be operated by a joint venture between Buru (25%) and EnRes (75%), a subsidiary of Tier 1 resources player Mineral Resources. The areas covered by the exploration permits, L22-2 and L22-4 on the Northern Carnarvon Basin and the Merlinleigh Sub-basin, were part of WA Government Petroleum Acreage Release 2 of 2022. They are located south of Onslow in Pilbara region, close to EP 510 which was granted to Buru and EnRes back in July 2020.

Buru Energy CEO Thomas Nador said: “These areas substantially advance Buru’s strategy to leverage our considerable inhouse geoscience expertise to grow our exposure to future onshore energy developments. The recent activity in the Perth Basin both geologically and corporately illustrates the major impact that gas discoveries can have, particularly in these underexplored basins close to infrastructure.”

“We are very pleased that our strong relationship with EnRes has resulted in a 100 per cent success rate with our joint exploration permit applications.”

Buru Energy is aiming to expand its presence outside the Canning Basin by leveraging its proprietary knowledge of the Palaeozoic petroleum systems. This aim has been given a major boost with the granting of two exploration permits in WA's onshore Carnarvon Basin, which were part of Petroleum Acreage Release 2 of 2022. The offshore part of the Carnarvon Basin covers an impressive 535,000 square km and has been producing 207 billion cubic metres of gas since exploration began back in 1953.

Meanwhile, the onshore area covers 115,000 sq km and the largely unexplored Merlinleigh Sub-basin holds potential for high-quality gas-prone source rocks. With this new addition, Buru and EnRes have become the largest acreage holders in the region, and it will enable them to optimize their exploration activities there. Area L22-2 covers 4,908 sq km and contains plays that are prospective for both oil and gas while Area L22-4 spans 6,444 sq km and overlies the northern extend of the Merlinleigh Sub-basin.

With global energy supplies facing continued disruption, Buru Energy's acquisition of two highly prospective exploration permits in the Carnarvon Basin is a welcome development for 2021. Buru has been active in WA's Canning Basin in the southwest Kimberley region and recently made a significant gas discovery which it is striving to commercialize.

The company already produces oil from its Ungani oilfield east of Broome and the new permits add further potential for growth. Investors are eagerly awaiting news as to how Buru and its JV partner Mineral Resources will move forward with these opportunities.