Buru Energy Ltd (BRNGF)

[Ebenezer3]

Transaction Summary

Under the terms of the transaction as reflected in a withdrawal agreement executed between Origin, Buru and Buru Canning, Buru Canning, as a wholly owned subsidiary of Buru, will receive Origin’s 50% participating interest in exploration permits EP 428 (containing the Rafael-1 conventional gas and condensate discovery), EP 129, EP 391, EP 431 and EP 436 with Buru and Buru Canning becoming the collective 100% owners of these permits. Separately, Origin has agreed to withdraw from the EP 457 and EP 458 joint ventures and assign its interests back to the Buru/Rey joint venture as described further below.

The Agreement includes a contribution of up to $4 million by Origin to undertake the Rafael 3D seismic survey program which is now planned to be conducted in the 2023 operating season. This survey will provide the highest value of information to support the structured appraisal of the Rafael discovery and will be critical to realising the highest value for any potential future transactions on the asset.

Under the terms of the Agreement, Buru will provide to Origin future capped staged contingent reimbursement payments of up to a total $34 million, conditional on the achievement of key Rafael discovery related development and production milestones. These contingent payments reflect certain past costs and costs related to this transaction as incurred by Origin.

As part of the Agreement, Origin will be released from any residual farmin and rehabilitation liabilities and costs associated with these Canning Basin exploration permits.

Origin’s 40% interest in EP 457 and EP 458 it shares with Buru and Rey will be assigned back to Buru and Rey equally in accordance with their pre-farmin equities, in consideration for releasing Origin from its residual farmin and rehabilitation liabilities associated with the Celestine 2D seismic survey carried out in 2021. Buru will remain Operator of these permits with a participating interest of 60%, with Rey holding the remaining 40%.

The transaction and assignment of Origin’s interests as set out above remains subject to regulatory approvals following the lodgment of the Agreement and instruments of transfer in respect of the Permits with the Department of Mines, Industry Regulation and Safety (DMIRS). The effective date in relation to joint venture costs is the date these documents are lodged with DMIRS.