another thread I couldn't think of a title for, page-2

Helpful geography in this report...the maps below show the permits the subject of the transaction.

Buru Energy announces Canning Basin asset swap with Mitsubishi


Buru Energy is pleased to announce that it has entered into a transformational transaction with its joint venture partners Diamond Resources (Fitzroy) (DRF) and Diamond Resources (Canning) (DRC) which are both wholly owned subsidiaries of Mitsubishi Corp on its exploration and production assets in the Canning Basin in the northwest of Western Australia.

Highlights

Asset swap to allow each company to achieve their corporate objectives by focusing on the areas where they have the most appropriate technical and commercial capability:

Buru Energy, DRC and DRF have entered into an agreement having the following effect:

• DRF has agreed to transfer to Buru its 50% interest in the Ungani Oilfield Production Licences (L20 and L21) and its 50% interest in exploration permits EP391, EP431 and EP436.
• DRC has agreed to transfer to Buru its 50% interest in exploration permit EP428.
• Buru has agreed to transfer to DRF, its 50% interest in EP 371 and its 50% interest in the application for special prospecting authority STP-SPA-0065 and STP-AAA-0031 (SPA).
• DRF and DRC have also agreed that Buru will provide services in relation to EP371, including community engagement and liaison.

Buru’s Executive Chairman Eric Streitberg said:

'This transaction is a logical outcome of the work the joint venture has undertaken in the Canning Basin since 2010. We have enjoyed an excellent working relationship with DRF, DRC and Mitsubishi Corp and we will continue to be engaged with them both through our assistance with the EP 371 operations, and our continued joint venture interest in EP 457 and EP 458.

This transaction provides both Buru and Mitsubishi Corp entities the ability to achieve their corporate objectives by progressing their respective projects without the corporate and commercial boundaries currently in place under the existing joint venture arrangements.

Buru gains access to 100% of the cash flow from the Ungani Oilfield where production will shortly recommence, together with 100% of the highly prospective exploration permits covering the Ungani oil trend, and continued exposure to the Laurel Tight Gas accumulation.

It gives DRF and DRC full access to the EP 371 gas resources with the ability to progress the appraisal of the resource in a timeframe and commercial structure most suitable for them.'

'We will provide a detailed shareholder update of forward plans, and an operational update, at the company’s Annual General Meeting on 31 May.'

For more information, please visit: http://www.buruenergy.com