Wednesday April 15, 2015: Buru Energy (BRU) has won its legal dispute with Fitzroy River Corporation (FZR) over royalties payable on oil production at Buru's Ungani field in WA.
The decision in the WA Supreme Court means Fitzroy will continue to receive the 2 per cent royalty based on the value of the petroleum at the well head, not the increased value Fitzroy was seeking.
Fitzroy was also ordered to pay the costs incurred in the action by Buru and its joint venture partner Mitsubishi.
The decision came as Buru announced it had now executed the three Native Title agreements covering Ungani, paving the way for commercial oil production.
Fitzroy shares were down 1.5c at 18.5c this morning. Buru shares were 4c higher at 37.5c.
The decision in the WA Supreme Court means Fitzroy will continue to receive the 2 per cent royalty based on the value of the petroleum at the well head, not the increased value Fitzroy was seeking.
Fitzroy was also ordered to pay the costs incurred in the action by Buru and its joint venture partner Mitsubishi.
The decision came as Buru announced it had now executed the three Native Title agreements covering Ungani, paving the way for commercial oil production.
Fitzroy shares were down 1.5c at 18.5c this morning. Buru shares were 4c higher at 37.5c.