I noted Mondo1960’s comment regarding MIN not been a pure O&G explorer which is true but in fairness support Seahunts comment as I guess one of CE’s things is diversification – starting in mining services then moving into lithium and iron ore and now into O&G exploration via its EnRes subsidiary.
On that point the fact is that it’s not just NWE that EnRes is in play with as they also have a focus on O&G and CCS in the Carnarvon Basin that looks to go back beyond October 2020 as they applied for initial acreage (L20-1 now EP510) in a 50/50 JV partnership with Buru (initially with BRU as operator) and more recently have obtained L22-2 (adjoining EP510) and L22-4 also in the Carnarvon Basin.
These acreages are now 75Enres/25BRU with EnRes now operator with plans for drilling 2 wells in EP510 in CY2024 (as detailed in BRUs announcements partially copied below – which are posted on MIN’s ASX announcements – but looks like this information is not material to MIN at this stage as reliance is on BRU reporting progress/action).
Anyway, I guess the thing is that via EnRes the underlying thing is that MIN can be also classified as an O&G explorer (at this stage not materially so against its other operations) but if ultimately successful across both Perth and Carnarvon Basins and having satisfied its need for gas from within its own operations (= cost/carbon emissions saving?) there is the potential (upside) that MIN becomes an O&G “seller” into the external market = additional product/revenue diversification.
Anyway, was just to fill in some facts that look to be missing in discussion and to each their own and good luck to those that are deciding to hold out - as they say DYOR.
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ASX Announcement
24 May 2022
Buru Energy and Energy Resources agree farmout equity restructure of onshoreCarnarvon Basin area L20-1, and Geovault CCS co-operation.Highlights
• Buru Energy Limited (ASX:BRU; Buru Energy) and Energy Resources Limited
(EnRes), a wholly owned subsidiary of Mineral Resources Limited (ASX:MIN), have
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.
L20-1 Application Area
Background - In October 2020, Buru Energy and EnRes applied for block L20-1 as part of
the 2020 State Government onshore Petroleum Acreage Release. The parties bid for this
block on a 50/50 joint venture basis with Buru as operator. The L20-1 block covers the
onshore portion of the Peedamullah Shelf, a geological unit bordering the main oil and gas
productive area of the Carnarvon Basin.
ASX Announcement
16 January 2023
Buru successful applicant for two exploration areas in the onshore CarnarvonBasinBuru Energy Limited (Buru) is pleased to advise that it has been successful in its application
with its partner Energy Resources Limited (EnRes, a wholly owned subsidiary of Mineral
Resources Limited) for an additional two highly prospective petroleum exploration areas in
the Northern Carnarvon Basin and the Merlinleigh Sub-basin. The areas lie immediately to
the south of the EP 510 permit that Buru also shares with EnRes.
The L22-2 and L22-4 areas were part of the recent WA Government Petroleum Acreage
Release 2 of 2022, and have been offered to the joint venture of EnRes as Operator (75%)
and Buru (25%). The grant of the permits is subject to completion of Native Title
agreements, and the joint venture looks forward to completing those with the relevant
parties.
The applications for these areas are part of Buru’s long-term strategy to leverage its
proprietary knowledge of the Palaeozoic petroleum systems of the Canning Basin to expand
into underexplored and prospective onshore petroleum acreage outside the Canning Basin.
The Buru/EnRes joint venture already operates in permit EP 510 immediately to the north of
the application areas and is planning to drill two exploration wells on EP 510 in CY 2024. The
addition of the new areas makes the joint venture the largest acreage holder in the onshore
Carnarvon Basin and Merlinleigh Sub-basin and will further facilitate optimisation of
exploration activities in the region.
Area L22-2 is located south of EP 510 and covers an area of 4,908 sq km. This permit contains
the southern extension of the petroleum plays in EP 510, and regional analysis demonstrates
the area is prospective for both oil and gas in a variety of play types.
Area L22-4 is located immediately to the south of L22-2 and overlies the northern extend ofthe under explored Merlinleigh Sub-basin. This permit covers an area of 6,444 sq km and is
prospective for gas with potential large structures identified.
