This is a big mistake by BRU especially with OBL looking to have...

This is a big mistake by BRU especially with OBL looking to have a farmin partner for the Backreef area and drilling in 2nd half of 2014. OBL currently have 100% rights and BRU pay 3% royalties. It seems BRU do not want this contingent liability hanging over their head. I wouldn't either as the numbers could be huge.

Below is in FZR announcement in their quarterly.


Backreef Area of EP 129 and L6
Fitzroy is monitoring the activities on the ‘Backreef Area’ of L6 and EP 129, particularly those of Oil Basins Ltd. It is understood that Buru holds 100% of the Backreef Area on trust for Oil Basins Ltd and other parties due to the completion of the drilling of the East Blina-1 well on 31 October 2012 in accordance with the ‘Backreef Play Agreement’ dated 30 October 2008. As previously announced, Fitzroy had some negotiations with Buru during 2013 regarding the terms of a deed of covenant proposed to be entered into by the beneficial owners of the Backreef Area, to support Fitzroy’s royalty interest. As at Quarter end, the contractual relationship governing the 3% royalty obligation (which is registered against L6 and EP 129) is between Fitzroy and Buru alone.