Origin Energy Ltd., Sydney, has farmed into two exploration permits in the onshore Canning basin of Western Australia operated by Buru Energy Ltd., Perth.
The permits—EP 457 and EP 458—lie in the southern flank of the Fitzroy graben, straddling the Ungani trend as well as the Laurel subbasin gas reservoirs and the Goldwyer formation which is prospective for unconventional shale oil and gas reservoirs.
Exploration in the permits has been sparse, but modelling has identified potential for new play types.
Origin will pay the first $3 million (Aus.) to acquire the Celestine seismic survey. It then has the option to withdraw or fund an additional $6 million (Aus.) in drilling costs to take and maintain a 40% interest in the permits.
Buru will retain 40% interest and operatorship while existing partner Rey Oil and Gas will hold 20%.
The joint venture plans to undertake the seismic survey during the 2021 field season (which begins in April-May following the current monsoon season in northern Australia) in conjunction with other seismic surveys scheduled by Buru in adjacent permits.
The farm-in means that Origin now holds positions in three large prospective onshore Australian basins—Beetaloo, Canning, and Cooper-Eromanga— with exposure to both conventional and unconventional gas plays.