Buru Energy Ltd. has reached an agreement with Quadrant Energy Australia Ltd. (Quadrant) in relation to the Coastal Titles Farmin Agreement in Western Australia which was originally executed Nov. 1, 2013.
Under the terms of the agreement, Quadrant will withdraw from the Coastal Permits (EP390, 438, 471 and 473) and will pay the Buru Energy and Mitsubishi joint venture a gross sum of $7 million (AUD 10 million) or $6.9 million (AUD 9.8 million net to Buru Energy after adjustments), in fulfilment of its farmin obligations.
The terms of the original farmin agreement included a commitment by Quadrant (then Apache Energy) to fund a $17.6 milllion (AUD 25 million) exploration program on EP390, 438, 471 and 473. Through the farmin, Quadrant earned a 50 percent interest in these permits and Buru Energy and Mitsubishi each then held a 25 percent equity interest. Subsequent to the withdrawal of Quadrant, Buru and Mitsubishi will be the only holders of Coastal Plains.