Following negative leads from the US ahead of the new year, the Australian share market briefly traded lower on open and is relatively flat at noon.
The S&P/ASX 200 index is 3 points up at 5,414. On the futures market the SPI is 8 points lower.
Buru Energy Limited (ASX:BRU)
has advised the market that its agreement with Backreef Oil for the acquisition of a 50 per cent stake in an exploration licence located in the ‘Derby Block’ in Western Australia has come to an end. The deal was brokered in 2012 and with transfer of the licence still not occurring by Dec 31 the deal is off. Buru no longer has to pay the $3.5 million purchase price and is free of any costs associated with current litigation on the licence. Oil Basins is seeking to have Backreef’s grant of the title overturned. A subsidiary of Rey Resources has stepped in to take up the half share. Rey Lennard Shelf will also assume the conduct of the litigation case including costs which is expected to conclude later this month. Shares in Buru Energy are trading down 5.75 per cent at $0.41.
And also in the energy sector Cooper Energy Limited (ASX:COE)
says it has plugged and abandoned its Jenners-1 well located in Cooper Basin South Australia. The well was a joint venture between Cooper Energy, Santos and operator Senex Energy. There were hopes the well would target the Tinchoo, Poolowanna and Birkhead formations and the Hutton sandstone. However drilling reached a depth of 2,525 meters without a result.
Shares in Cooper Energy are trading up 3.23 per cent at $0.32.
Best and worse performers
The best performing sector is healthcare, gaining 0.6 per cent to 17,587. Shares in CSL have risen 0.98 per cent and trading at $87.53. Shares in Healthscope and Sonic Healthcare are also stronger.
The worst performing sector is telco services, falling 0.5 per cent to 2,076. Shares in iiNet have fallen 1.14 per cent, trading at $7.78. Shares in Vocus Communications and M2 Group are also lower.
Gold and the dollar
Gold is trading at $US1,188 an ounce.
The Australian dollar is buying 81.71 US cents.