Highlights• Buru Energy Limited (ASX:BRU; Buru Energy) and Energy Resources Limited
(EnRes), a wholly owned subsidiary of Mineral Resources Limited (ASX:MIN), have 16 October 2018
agreed to restructure their interests in L20-1 in the onshore Carnarvon Basin through
a farmout by Buru to EnRes.
Under the farmout terms, Buru will assign a 25% permit interest and operatorship of
L20-1 to EnRes such that the permit interests will be Buru 25% and EnRes 75%. The farmout will be effective post the pending grant of the permit and the requisite regulatory approvals of the transaction.
As consideration, EnRes will carry Buru through the first two exploration wells expected to be drilled in 2023, and other agreed exploration and overhead costs.
EnRes has also agreed to match the funding contribution under the recently announced Commonwealth Grant offered to Buru for a three year Buru operated CCS feasibility study in the onshore Carnarvon Basin.
In return for this additional financial carry under the Grant, Buru and EnRes have agreed to enter into a Carbon Capture and Storage (CCS) joint venture. The equity interests in the CCS joint venture will be aligned with the L20-1 joint venture, with Buru 25% and EnRes 75% and operator.
