Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has added A$5 million to the war chest with the sale of its onshore Carnarvon Basin permit and applications in Western Australia to Energy Resources Limited (MinRes).
The sale of these non-operated assets will allow a sharpened focus on the company’s Rafael asset, where recent resource certification has identified a “significant” conventional gas and condensate resource.
With the sale of the 25%-owned Exploration Permit EP 510, and Application Areas L22-2 and L22-4, MinRes will now assume 100% ownership of the permit and application areas.
“Another important milestone”
“The sale of Buru’s interests in the onshore Carnarvon Basin to MinRes represents another important milestone in focusing our portfolio, strengthening our balance sheet and positioning for the future,” Buru Energy CEO Thomas Nador said.
“As our current joint venture exploration partner in the Carnarvon Basin, MinRes is a natural acquirer of these interests, and the sale is a value-adding outcome for Buru shareholders and the business.
“The sale will simplify the company’s oil and gas portfolio and enable it to allocate additional capital and resources toward its strategic priority to develop the first proven significant conventional gas and condensate discovery in the Canning Basin of Western Australia.”
In line with Buru’s financial framework and priorities, the proceeds from the transaction will be used to progress the execution of the Rafael phased development strategy as outlined in August.
Read: Buru Energy charts course to commercialise Rafael gas condensate discovery