News listings

energy-pedia farmouts/divestments

Australia flagAustralia

Central & SE Asia / Australasia >>> Australia

Australia: Origin farms into prospective Canning Basin permits

21 Dec 2020

Photo - see caption

Origin Energy has announced a farm-in with Buru Energy for seven permits covering 20,000 sq km in Western Australia’s prospective Canning Basin.

Under the agreements, Origin secures a 50 per cent equity share in five permits with Buru Energy, and a 40 per cent equity share in two permits with Buru and Rey Resources in exchange for carrying $12.3 million of their share of work program costs. The total estimated spend by Origin over a two-year period is expected to be approx. $35 million inclusive of a two-well drilling program and seismic work.

Origin also has contingent options to carry an additional $10.6 million of Buru and Rey’s costs over a four-year period. Origin has the option to assume operatorship for any significant gas development, as well as any carbon capture and storage development.

Origin Executive General Manager Integrated Gas, Mark Schubert said:

'We are excited by this opportunity to take an interest in one of Australia’s material onshore exploration and production basins, at an attractive entry cost where significant work has already been undertaken, giving it a short timeline to value.

'Origin will now hold positions in three large prospective onshore basins – the Beetaloo, Canning, and Cooper-Eromanga – giving us exposure to conventional and unconventional gas plays and what we believe are the most prospective shale formations in Australia.

'Our interest in these seven permits lies in the strength of the gas resources following extensive analysis of the basin, and the longer-term potential for carbon capture and storage.

'Our Canning Basin acreage position will also give us exposure to value uplift from the activity of other explorers adjacent to our permit areas, with the option to supply gas for LNG backfill and to customers in domestic and regional markets.

'As action to combat climate change continues to accelerate globally, including customer-led demand for clean energy, in making this investment we have given significant consideration to the pathways available to green the gas over time, including carbon capture and storage and offsets, to support Origin’s ongoing decarbonisation objectives.

'Gas remains core to our strategy and the global and domestic energy mix, as it can help drive the transition to lower emissions faster by supporting intermittent renewables and replacing more carbon intensive fuels.

We are looking forward to working with Buru, which is a long established operator in the Canning Basin,' Mr Schubert said.

Click here for Buru Energy announcement: Farm-out of Buru’s Canning Basin portfolio kicks off basin-wide exploration program

Original article link

Source: Origin Energy

Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Subscriber Only Deals

Current Deals

Current Upstream Deals: 277

Completed Deals

Completed Upstream Deals: 6458

Company Profiles

Current Company Profiles: 2886

Corporate Activity

Current Corporate Activity articles: 4036

Companies Looking

Current number of articles: 463

Company Sales

Current Company Sales articles:1622


Current Geostudies articles: 917

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

Telos NRG
Union Jack Oil 149
Rose & Assocs 180
Government of South Australia
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675