Buru Energy Limited company, advised that the Western Australian (WA) Supreme Court has delivered a decision in proceedings CIV 2315 of 2013 involving Buru Energy Limited, Mitsubishi Corporation and Fitzroy River Corporation (Fitzroy) regarding the proper construction of the Canning Basin Royalty Deed.
On April 14, His Honor Justice Mitchell, dismissed Fitzroy’s claim in relation to the royalty payable under the Canning Basin Royalty Deed and confirmed that Buru Energy and Mitsubishi Corporation’s interpretation of the Deed is correct. Fitzroy was ordered to pay the costs of Buru Energy and Mitsubishi Corporation.
As a result of this decision Fitzroy will continue to receive a 2 percent royalty based on the value of the petroleum at the well head. Buru Energy Executive Chairman Eric Streitberg commented: “We are very pleased that Buru’s interpretation of the royalty deed has been confirmed. Together with the recent execution of the agreements with the Native Title parties this provides a clear path for the development of Ungani.” “Buru is also close to finalizing its drilling program for the coming dry season and we look forward to adding value for all of our stakeholders.”