Origin Farms Into West Oz Permits
Australia’s Origin Energy inked farm-in agreements with Sydney-listed Buru Energy for seven permits covering 20,000-km2 in Western Australia’s Canning basin, it said on December 21.
Under the agreements, Origin will have a 50% equity share in five permits with Buru, and a 40% interest in two permits with Buru and Rey Resources in exchange for carrying A$12.3mn (US$9.3mn) of their share of work programme costs. The total estimated spend over a two-year period is expected to be approximately A$35mn, covering a two-well drilling programme and seismic work, Origin said.
Origin also has contingent options to carry an additional A$10.6bn of Buru and Rey’s costs over a four-year period. In addition, the company said it had the option to assume operatorship for any significant gas development, as well as any carbon capture and storage project.
“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,” Origin's general manager for integrated gas Mark Schubert said.
Schubert added that Canning basin acreage position would give Origin exposure to value uplift from the activity of other explorers adjacent to the permit areas, with the option to supply gas for LNG backfill and to customers in domestic and regional markets.