How Will Buru Energy Benefit from Regaining Full Ownership of the Ungani Oilfield?
Buru Energy Limited (Buru), an Australian oil and gas company, has announced its agreement with Roc Oil (Canning) Pty Limited (ROC) for ROC to withdraw from and assign its 50% joint venture interests in Production Licences L 20 and L 21, which contain the Ungani Oilfield. This agreement will result in Buru assuming full ownership of the Ungani Oilfield, solidifying its position in the industry.
Strengthening Ownership
Following the completion of assignment and transfer documentation and governmental approvals, Buru will officially assume 100% ownership of the Ungani Oilfield with an expected effective date of 30 September 2023. This move reflects Buru's commitment to maximizing value from its assets and consolidating its operations.
Suspension of Operations and Liability
The agreement between Buru and ROC comes after Buru, as the Operator, recommended the suspension of operations at the Ungani Oilfield due to the uncertain availability of the temporary river crossing at Fitzroy Crossing during the upcoming wet season in the Kimberley region (November - April). Buru has prioritized safety and efficiency in its decision-making process.
Under the agreement, ROC will remain liable for its share of costs associated with the near-term staged suspension of Ungani operations.
Story Continues.. after this ad because we need some dollarydoos
Additionally, ROC will also share responsibility for the future decommissioning of all wells located within Production Licences L 20 and L 21, as well as specified restoration and remediation costs. This provides Buru with financial protection and allows them to focus on their strategic objectives.
A Valuable Asset for Shareholders
While preparing for the suspension of production from the Ungani Oilfield, Buru's CEO, Thomas Nador, expressed gratitude for ROC's support as a joint venture partner since May 2018. Despite the circumstances that led to the decision to suspend production, Nador emphasized that Buru will continue to explore opportunities to extract maximum value from the asset, now as the sole owner of the oilfield. This ownership consolidation allows Buru to make independent decisions and pursue strategies that benefit its shareholders.
Looking Ahead
With full ownership of the Ungani Oilfield, Buru Energy Limited is well-positioned to strengthen its presence in the oil and gas industry. The agreement with ROC not only grants Buru complete control over operations but also provides financial support and liability sharing. Buru will continue to prioritize the safe and efficient management of its assets and explore opportunities to maximize value for its shareholders as a 100% owner of the oilfield.
Promote your business on our growing investor platform: Advertise With Us
Berkshire is hoarding so. much. cash.
Buffet indicator is showing some wild times ahead perhaps, combine that with Berkshires record high cash hoard of 30%... chart via barchart.com / Longtermtrends
Looks like we're going through something, but who would have thought with all these tarrifs, inflation and trade wars going on
Where does this end up long term with small stocks suffering white giant caps are taking all the coin?
🔺 Student Loan Delinquencies Hit Record 12.9%...
The spike in red reflects financial strain returning fast. Credit card delinquencies are rising too, hinting that lower-income consumers might be nearing a breaking point. What's going on...
#ASX:ASN Is Anson Resources’ US$330M Financing Deal the Key to Unlocking Utah’s Lithium Potential?
