Rey Resources Ltd reported on 28 March 2019 that both it and joint venture partner Buru Energy Ltd had successfully completed the acquisition of additional interest in in EP 457 and EP 458, located in the Canning Basin.Â  The companies have increased their respective interests in the permits upon the withdrawal of Mitsubishi Corp, which held a 37.5% interest. The deal remains unregistered to date by the Western Australian Department of Mines Industry Regulation and Safety.  Rey reported that it had paid a consideration of AUD 480,000 to acquire 15% of Mitsubishiâs interest, taking its interest from 25% to 40%. Â Operator Buru previously held 37.5%, through its subsidiary company Buru Fitzroy Ltd, and has increased its interest to 60% upon completion of its direct deal with Mitsubishiâs subsidiary company Diamond Resources (Barbwire) Pty Ltd. Both transactions were subject to Western Australian regulatory approvals.  Under the existing joint venture agreement, part of Reyâs working interest is subject to a free loan carry by Buru and Mitsubishi up to the award of a production licence. Funds received would then be repaid from production revenue. Upon completion of Mitsubishiâs exit, Buru shall take full liability of Reyâs loan entitlement up to approximately 6.66% of total costs. This will result in funding provisions during exploration of 66.64% by Buru and 33.33% by Rey Oil and Gas Pty Ltd, a wholly owned Rey Resources subsidiary company.  Rey Resources joined Buru, in reaching a deal to increase its interest upon the exit of Mitsubishi, on 10 December 2018.  In EP 457 and EP 458, two exploration wells were drilled in 2015 targeting the conventional Lower Laurel âUnganiâ Dolomite and the Devonian Nullara Carbonate units. Senagi 1, in EP 458, encountered oil shows in the Dolomites. Victory 1 lost circulation during drilling and encountered poor hole conditions, resulting in the operator being unable to determine the presence of hydrocarbons from the logs. Â   EP 457 and 458 cover a combined area of 5,440 sq km in the onshore Canning Basin. The permits were awarded on 24 October 2007 and, post-renewals, are scheduled to expire on 5 January 2024. Upon completion of the transactions, participants in the permits will become: Buru Fitzroy Ltd (60% + operator) and Rey Oil and Gas Pty Ltd (25%).   In January 2018 Buru Energy Ltd completed a transformational transaction with Diamond Resources Pty Ltd for the transfer of interests in the Canning Basin. The transfer was initiated to allow the companies to focus on areas in which they hold most expertise and have the ability to maximize the exploration potential and production from the assets. The transaction did not include EP 457 and 458 at the time which are thought to contain conventional oil prospectivity.
Rey Resources Ltd reported on 28 March 2019 that both it and joint venture partner Buru Energy Ltd had successfully completed the acquisition of additional interest in in EP 457 and EP 458, located in the Canning Basin. 