- Buru terminates the Rafael Shallow and Ungani Farm-in Agreements with Sabre Energy.
- Buru executes binding Term Sheets which secures alternative funding of $3 million for the Rafael Shallow 1 exploration well, with two entities associated with long-term Buru shareholders to collectively earn a total 25% interest in a Commercial Discovery and subsequent Production License.
- Buru retains a 75% interest in the Rafael Shallow 1 exploration well and 100% interest in the Ungani Oilfield.
- Buru successfully completes an oversubscribed and scaled back share placement of $6.7 million (before costs) at 6.2 cents per share which was strongly supported by institutional and professional investors and directors (1) .
- Placement provides funding towards the commercialisation of the Rafael Gas Project, drilling of the Rafael Shallow 1 exploration well, and restarting of the Ungani Oilfield.
- Buru executes drilling contract with Silver City Drilling (SCD) for Rafael Shallow 1. SCD Rig 24 has mobilised and is preparing to commence drilling in October 2024.
Buru Energy has provided an update in relation to the Corporate Asset Transactions recently executed by the Company with Sabre Energy.
Following lengthy discussions, Sabre failed to meet their financial obligations under the Rafael Shallow Farm-in Agreement (FIA) announced on 5 August 2024.
Buru and Sabre have therefore executed agreements to terminate both the Rafael Shallow and Ungani FIAs. Pursuant to those termination agreements, Buru and Sabre release, waive, and discharge each other from any and all claims, liabilities or demands arising out of, or relating to the FIAs.
Buru is pleased to announce that it has executed binding Term Sheets for alternative funding of $3 million for the Rafael Shallow 1 well with two entities associated with long-term Buru shareholders. They have entered into separate farm-in transactions with Buru to earn a total 25% interest in the Rafael Shallow 1 well which has been negotiated largely based on the same pro-rata farm-in terms as the previous Farm-in Agreement with Sabre. Further details of these new Transactions are provided in Attachment 1.
Buru is also pleased to announce that it has completed a successful Share Placement, which has raised a total of $6.7 million (Placement) before costs associated with the Placement.
The Placement was made to mainly new institutional and professional investors who are strongly supportive of the Company’s progress and direction in the commercialisation of the Rafael Gas Project, drilling the Rafael Shallow exploration well and restarting the Ungani Oilfield. Buru Directors have also participated in the Placement subject to shareholder approval(1) .
Commenting on the asset transactions and the capital raising, Buru’s CEO Thomas Nador said:
'Despite the challenges faced by Buru due to a third party having failed on their commitments, the Company continues to demonstrate resilience to safeguard its strategic objectives towards preserving and growing shareholder value.
Through the strong support of existing shareholders, new institutional and professional investors and our Directors, Buru is well placed to maintain the development momentum of its foundation Rafael gas project; the drilling of the high potential Rafael Shallow 1 oil target in the near future and work toward restarting oil production from the Ungani Oilfield.'
Source: Buru Energy
