Technology giant Mitsubishi and Buru Energy plan to jointly explore and develop the Canning basin in Western Australia under a new agreement.
Mitsubishi will farm-in into Buru’s exploration permits in the region by spending up to A$152.4m ($132m) in exploration costs.
The firm will spend A$62.4m ($54m) on conventional exploration and A$40m ($34.5m) on unconventional programmes such as shale gas prospects.
According to a Buru Energy statement, Mitsubishi may bear up to A$50m ($43m) of Buru’s development costs for a major oil and gas production infrastructure.
Under the farm-in, the firm will also fund 80% of Buru’s 2010 programme amounting up to A$22.4m ($19.3m) to earn a 40% interest in its permits.
The 2010 exploration programme will include two wildcat wells, a re-entry and refracing of a gas discovery (Yulleroo) and an appraisal of the Pictor oil and gas discovery.
Buru will remain the operator in all permits, while Mitsubishi will lead any LNG commercialisation plans.
