bru vs nse geology, page-16

I have found an old document. A farmin agreement was made between ARC and NSE on Sept. 2007 at the worst time of the markets during GFC. It would allow ARC to gradually acquire more interest up to 75% in these tenements. Just like Conoco did later on.

This document is very interesting for NSE believers. Eric Streitberg, currently the Buru MD, is explaining the prospectivity of Kidson sub basin when he was the MD for ARC Energy in Sept. 2007. He exactly says what I was saying above.

Eric Streitberg says; “The NSE agreement gives us access to the Kidson Sub-basin, the last major Sub-basin that we have identified as being geologically prospective and having significant commercial potential. From what data we have, the Kidson looks very prospective for oil but exploration is at an early stage. We have designed the farmin program to systematically explore the Sub-basin as we have done with the other Canning Sub-basins and it should give us the best chance of making a discovery. We intend to commence work on the NSE acreage next year through a substantial seismic acquisition program and then progress the acreage from there.”

People can sell as much as they like, but it won't change the fundamentals of NSE and the prospectivity of its tenements. It's just going to be a huge opportunity to buy NSE at these incredibly low prices.

ARC was a ASX listed company while NSE was an unlisted private company who holds those tenements for long time.

ARC Energy when they acquired 10% interest in NSE's tenements EP-450, EP-451, EP-443 and EP-442. (I couldn't find the link to the original anns. but this is the same of anns. published on the news). As part of the agreement with NSE, ARC has agreed to subscribe for 8,333,333 new ordinary shares in NSE with a total value of A$1.5 million.

As you can see above I said EP-450 and EP-451 is to be the most prospective tenements in Canning Basin. Eric Streitberg was very keen to bite some shares on them.

Then ARC energy demerged and Buru was born. Buru was under the obligations of farmin agreement with NSE. That would be very costly and risky for Buru to keep going with this farmin agreement. Buru said it would be much better to be released from these obligations and to revise its planned exploration activities in other parts.

On Aug. 2009, by a new agreement; NSE gave EP-442 totally to Buru but took back the 10% interest from Buru for EP-450, EP-451, EP-456 and EP-443. NSE also took $3.2m from Buru, Buru issues 18m shares to NSE, and Buru would continue to hold 10% of NSE shares.

Anyway, that's the history. We just need to look at what was said by Eric Streitberg for the future of NSE's Kidson
Sub basin tenements.

Here it is; ARC Energy Acquires Further Major Interests In The Canning Basin

Prospectivity
...The Kidson Sub-basin contains a unique petroleum system not adequately covered by ARC’s current Canning Basin interests. This farmin will provide an opportunity to systematically test the prospectivity of this petroleum system and the Kidson Sub-basin...The petroleum system in the Kidson Sub-basin has never been systematically tested, but several wells have encountered significant oil columns, and the Sub-basin contains a widespread salt horizon (the Mallowa Salt of the Carribuddy Formation) which provides a regional top seal to good source and reservoir rocks beneath. Similar petroleum systems in the Middle East are extremely prolific. Further details of the geological prospectivity of the area are set out in the appendix.
...
The Kidson Sub-basin and its extensions contain one of the most prospective petroleum systems in the Canning Basin. The very rich Goldwyer source rock and the presence of a regional salt horizon (the Mallowa salt of the Carribuddy Formation) provide a source/seal pair of global significance. Few wells have been drilled in the area but a very significant tight oil discovery was made by Shell in 1996 at Looma 1.
...
Shell first identified the potential for broad, low relief sub-salt structures on the northern flank of the Kidson Sub-basin in the 1990s. It was envisaged that oil charge from Ordovician source rocks (Goldwyer Formation) in the Kidson could migrate in a northerly direction into these structures. The Ordovician sequence would provide possible reservoirs, including the Nita and Acacia Formations.
...
Other wells in the area that demonstrate the effectiveness of the oil generative horizons include the Pictor gas-condensate discovery to the north on the Broome Platform which flowed gas at 2.2 mmcfd. Although reservoirs encountered so far have generally been tight, reservoir quality can be predicted to improve towards the central parts of the NSE acreage.

Analogous basins globally include the Paradox Basin of North America and many Middle Eastern producing basins including Oman where Shell has produced very significant volumes of oil.