Roc Oil farms into Australian concessions

Australia

SYDNEY, May 22, 2018 – Roc Oil, a subsidiary of China’s Fosun International, has struck deals with Buru Energy to enter the Ungani oilfield in Western Australia, as well as several exploration licences, Buru announced on Monday.

Roc Oil has agreed to pay AUD 64 million (USD 48.3 million) for a 50% stake in licences L20 and L21, which make up the Ungani field, as well as a further AUD 25 million (USD 18.9 million) in exploration expenses for a 50% interest in blocks EP 391, EP 428 and EP 436.

Buru currently holds 100% of the licences and will retain full rights to the unconventional gas deposits in the Laurel formation, which is situated in the blocks, the company statement added.

“The transaction recognises the strategic value and prospectivity of the company’s Canning Basin assets and Buru’s expertise and knowledge as operator in that area since 2006,” said Eric Streitberg, Buru’s executive chairman. “It is also significant in that it provides Buru with the balance sheet strength to further develop the company’s assets from internal resources in the short to medium term.”