Justice Mitchell dismissed Fitzroy’s claim to “˜gross’ royalty entitlements from EP 391 Ungani oil field production, finding in favour of Buru Energy and joint venture partner Mitsubishi Corporation’s interpretation of the deed.
“We are very pleased that Buru’s interpretation of the royalty deed has been confirmed,” Buru Energy Executive Chairman Eric Streitberg said.
Mr Streitberg added that Buru is now close to finalising its drilling program for the coming dry season, after having also recently secured native title agreements with three Traditional Owner groups.
As a result of the decision, Fitzroy will continue to receive a 2 per cent royalty based on the value of the petroleum at the well head.
Fitzroy Chairman Malcolm McComas said, “While the result is disappointing it is good to have received clarity around the calculation of payment of the royalty by Buru and others and we look forward to working closely in the future towards developing the relationship and opportunities that exist for the parties to work together”.