Exploration/Development is a balancing act of potential...

Exploration/Development is a balancing act of potential resources and funds available.

Clearly Buru needs funds to exploit their Rafael discovery and cashing in on an unproven exploration block might be sensible depending on the risked potential of the permit.

While it has been decades since I looked at this block, my recollection is that the depth to economic basement was quite shallow and the oil/gas shows were very shallow (less than 200m in seanshare's excellent post above). Shallow zones are usually low pressure (and likely low flow rates). Fields of this type require tight well spacing (and are very hard to drill horizontally). The low cost of drilling shallow wells is offset by the number of wells required and the base cost of site clearing, surface casing, and lots of surface tie ins. Some companies (especially in north america) are very good at these sorts of fields but most are not (Min Res obviously thinks they are up to the task - and all the best to them).

I think decision Buru made was prudent and the deal may be a win-win. Buru also has a long and deep understanding of the rest of the Canning Basin where there is no lack of opportunity for exploration when they need new prospects.