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Buru offloads portion of Fitzroy blocks

18th March 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Oil and gas explorer Buru Energy has agreed to sell off an interest in two of its exploration permits in the Fitzroy blocks, in the Canning basin, to Mitsubishi Corporation and Rey Resources for A$21-million.

Buru currently holds a 90% interest in the Fitzroy blocks, with Rey holding a 10% carried interest.

Following the conclusion of the transaction, Buru would hold a 37.5% interest in the permits and would act as operator, while Mitsubishi and Rey would hold a 37.5% and 25% interest, respectively.

“We are delighted to have been able to rationalize the interest in the Fitzroy blocks in a way that is a win for all parties,” said Buru executive director Eric Streitberg.

He noted that the A$21-million cash payment, along with its existing cash on hand, would provide funding for the planned expenditure programme in 2013, and removed the need for any capital raisings in the near term.

“The transaction also confirms Buru’s focus on capital management and adding value for shareholders.

“Equally important, the transaction allows us to proceed with exploration of these highly prospective areas with aligned partners, under joint venture arrangements that are consistent with the rest of our acreage in the Canning superbasin.”

Edited by Creamer Media Reporter

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