So... in my meandering, I noticed that REY (BRUs only listed companion on the ASX, but even then I use the term loosely, as the stock is basically just a shell, as it owes $2m, has no cash and continues to undertake buy backs on market and for most of the last 12 months, has a market cap of half of BRUs) has placed a formal Farmout presentation on their website (last time I looked was perhaps 1-2 months ago).
The Butler conventional wet gas prospect
Mind you, I think REY are looking for a full farmout/JV for the entire permit, so pretty sure the $20m they mention is to assess both, which... could be done with just one well, so... drill, test and potentially in the future frac if the W.A Gov ever make a decision etc. I actually think its a pretty unique drilling opporunity, perhaps even more so that what Mitsubishi have in their Laurel permits, which for me, makes this a really interesting target for suitors... Mitsubishi might want to lock up more of the trend, or... perhaps Twiggy wants in, or... an outside can see how cheap an entry this is when BRU and Mitsubishi have spent so much already on the Laurel formation to the South East and at Yulleroo.
Due to REY have very little capital, I am guessing they will have to provide a large amount of equity to entire a partner. BRU will also likely be relatively happy to reduce its % to a lower level than perhaps what they will get on the Ungani trend due to gas being a longer term, more costly development potential.
Its really the only significant acreage that is available in the Canning for farmout, BRU is not offering any, Mitsubishi is not either. While I am digressing a little, I keeping coming back to Alcoa who burnt $100m on the Transervs gas exploration, when... just imagine what that money could have done on BRUs ground. I wonder if just maybe they are willing to have another crack a huge conventional/tight gas prospect.
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