Mitsubishi Corp. exercised its option to acquire a 50% interest in the unconventional resources in the onshore natural gas and crude oil exploration permits in the Kimberley region of Western Australia from Buru Energy Ltd.

In June 2010, Mitsubishi acquired a 50% interest in 13 conventional oil and gas exploration permits owned by Buru in the Canning Superbasin located in the Kimberley region. Since acquiring this interest, the two companies have undertaken an exploration program. In 2011, the joint venture made a new oil discovery (Ungani) as well as a further gas discovery (Valhalla).

Further to these conventional resource rights, Mitsubishi also acquired a 50% interest in the rights to all unconventional resources (shale gas, tight gas and shale oil, etc.) from Buru in these exploration permits by committing to fund 80% ($40 million) of the cost of the exploration and appraisal program up to $50 million for unconventional resources, which will be implemented in 2012 and onward.

The joint venture will consider development options for any significant gas reserves identified, including the supply of gas to the domestic gas market in Western Australia and supplying feed gas to existing or new LNG projects.