Buru Energy wins support on ASX debut

Oil and gas explorer Buru Energy had a positive start to trading on the ASX today, with its stock rising as high as 34 cents before closing at 30 cents.

Buru was formed from the demerger of the Canning Basin assets of ARC Energy, following that company's merger with Australian Worldwide Exploration.

As part of that process, Buru has acquired $84 million in working capital.

This includes $20 million escrowed under arrangements with Buru's gas customer Alcoa of Australia, leaving Buru with free cash for exploration of $64 million.