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Buru Energy (ASX:BRU) has announced its execution of a letter of intent (LOI) with a third party to drill the WA-based Canning Basin.
That third party is a drilling company called Silver City; Buru is interested in the former’s ‘Rig 24’ drill rig.
It’s a two well onshore campaign Buru wants to see come to fruition in the Kimberley 2024 operating season. Those two wells are wrapped into a farm-in deal with Sabre Energy, unlisted.
To that end, the company expects today’s LOI to foreshadow a more meaningful binding contract.
“The execution of a Letter of Intent for the SCD Rig 24 is further evidence of the progress of Buru’s plans to get back to the drill bit,” BRU CEO Thomas Nador said.
“Exploration success at Rafael Shallow or Mars has the potential to provide substantial value for Buru through the expedited development of oil.”
BRU last traded at 9.3cps.
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