Roc Oil Co. Ltd., a wholly owned subsidiary of Hong Kong-based Fosun International Ltd., has agreed to acquire 50% interest in Perth firm Buru Energy Ltd.’s Ungani oil field production licenses L20 and L21 in the onshore Canning basin of Western Australia for $64 million (Aus.).
The two parties also have agreed that Roc will acquire 50% interest in exploration permits EP 391, EP 428, and EP 436 by paying $20 million (Aus.) of a $25 million (Aus.) exploration program of up to four wells in the 2018-19 drilling seasons.
The farm-in deal, however, does not include the Laurel Formation unconventional gas accumulation within the permits, which will remain 100% owned by Buru. These gas assets include Yulleroo gas field.
Buru will remain operator of Ungani oil field, the exploration permits, and the unconventional gas assets.
The Roc subsidiary is Australian-based and has assets in China and Malaysia.
Buru says the farmout strengthens its balance sheet and provides the funding to enable it to tackle an aggressive exploration program beginning with the 2018 Canning basin drilling season.
The Ungani licenses include the current producing wells in the field along with associated facilities.
The licenses also include the oil discovery at Ungani Far West-1, the Ungani North-1 appraisal potential, and a number of subsidiary prospects. Of these, Ungani West, Kurrajong, and Yakka Munga are planned for drilling this year. The Rafael prospect has been slotted for 2019.
Ungani oil field is producing in excess of 2,600 bo/d from four production wells, two of which were brought on stream earlier this year. The field lies 150 km east of Broome.