Ungani Oilfield to be reinvigorated with new partner and planned...

Ungani Oilfield to be reinvigorated with new partner and
planned near field exploration
Buru Energy Limited (Buru, Company) (ASX: BRU) is pleased to announce that it has
entered into a Farm-in Agreement (FIA) with Sabre Energy Pty Ltd (Sabre) for the Ungani
Oilfield production and exploration assets in Petroleum Production Licences L 20 and
L 21 in Western Australia’s onshore Canning Basin (the Transaction).
Commenting on the transaction, CEO Thomas Nador said:
“We are very pleased to have Sabre Energy as a future Joint Venture Partner and operator
of the Ungani Oilfield. Sabre’s approach to exploration, development and production, their
team credentials and experience, and entrepreneurial spirit will be a great value add for the
asset.
Highlights
• Sabre to earn a 70% interest in the Ungani Oilfield for a consideration that includes a $6
million farm-in carry, with Buru retaining a 30% working interest in Petroleum Production
Licenses L 20 and L 21.
• The Transaction includes a structured transition of operatorship from Buru to Sabre, a
contribution by Sabre of $1.0 million towards the cost of restarting production from the
Ungani Oilfield as well as a $5.0 million carry towards the drilling of the high potential
Mars exploration well located approximately 9km north of the Ungani Production Facility.
• Planning is well advanced to drill the Mars prospect in Production Licence L 20 during the
2024 Kimberley operating season, potentially in a campaign with the planned drilling of
Buru’s currently fully owned and operated Rafael Shallow clastic oil prospect in
Exploration Permit (EP) 428. The timing of the 2024 drilling campaign remains subject to
the completion of the current process of selecting and securing a suitable drilling rig.
• Planning is also advancing for the restart of operations at the Ungani Production Facility,
potentially as early as during Q4 2024.
• Sabre will further assume an agreed proportion of the future abandonment costs in
relation to the Ungani Oilfield, thereby significantly reducing Buru’s current abandonment
liabilities.
• Although the Ungani assets were fully impaired by Buru in 2022, the Transaction and the
Joint Venture partnership with Sabre provides Buru with an opportunity to reinvigorate
its uniquely positioned asset for the benefit of Buru and Sabre shareholders and investors,
the local community, the Traditional Owners and the WA Government.
• The Transaction and the commencement of the planned work program is subject to
standard regulatory approvals of the Production Licence transfers to Sabre.

GAME ON!