Small cap Buru Energy and large cap Mineral Resources just won a new gas exploration permit together
The win comes five months after Mineral Resources first applied and includes two permits although only one (L20-1) comes under the joint venture between it and Buru Energy.
Mineral Resources – which is predominantly a mining services company but also has its own projects in iron ore, lithium and manganese – has been seeking to replace diesel use in its business to help it become self-sustainable and achieve its goal of Net Zero Emissions by 2050.
Managing director Chris Ellison said the award of the permits was a significant step towards this and the permits were ideally located.
“Mineral Resources’ move into the onshore Northern Carnarvon Basin makes sense given the block’s proximity to our own mining projects as well as existing gas infrastructure,” he said.
“We look forward to working with Buru to achieving shared success.
“We are fully committed to achieving Net Zero Emissions before 2050 and believe owning our own natural gas supply will complement the significant advances we are making in renewable energy, particular around solar power.”
While Buru is a relative minnow with an ASX market cap of just $75 million (as opposed to the $7.2 billion of its larger partner) it is backed by Fortescue boss Andrew Forrest and has assets further north in the Canning Basin.
While the block will be a joint venture, Buru Energy will be the sole operator. It covers the town of Onslow and substantial gas infrastructure in the surrounding region.
Although there has been exploration in the past, the company claims this has been sporadic and certain prospects have strong seismic data but have not been tested.
“We look forward to working with the various stakeholders in this new area and getting boots on the ground to find some oil and gas,” declared Buru chairman Eric Streitberg, a veteran of Australia’s oil and gas industry.
Buru Energy shares rose by over 16 per cent today and have more than doubled in the last six months.