Rey Resources Ltd. disclosed Friday that the agreement with Backreef Oil Pty Ltd. for the acquisition of a 50 percent interest in EP 487 in the Canning Basin of Western Australia came to an end on Dec. 31, 2014.
The parties originally executed the agreement on Sept. 25, 2012 with a requirement that the transfer proceed by Dec.31, 2013, a date which was subsequently extended to Dec. 31, 2014. The transfer of the 50 percent interest in EP 487 has still not occurred and the parties have not agreed to further extend the date for transfer, therefore the agreement has now come to an end.
The removal of this permit from Buru's portfolio has no material effect on its previously stated prospective tight gas resources given their overall size. However, it also reduces Buru's contingent funding obligations by the $3.5 million purchase price and any costs associated with the current litigation, and the costs of early stage exploration activity on this permit.