Mitsubishi Corporation forged an agreement with Buru Energy Ltd to farm-in on the company's Canning Superbasin project in Western Australia and is set to invest up to $152.4 million in exploration and development expenditures.

In return, the Japanese company is poised to earn a 50 percent stake in the majority of Buru's exploration permits and should also acquire an interest in Buru's production permits in exchange for more cash payments.

The Canning Superbasin is in the Kimberly region, northwest of WA and Buru currently explores the area for oil and gas finds.

Buru executive director Eric Streitberg said that the deal with Mitsubishi was transformational for the company and "for Buru to continue as operator is also testament to the strength of the organisation we have built in a very short time."

As of 1034 AEST, Buru Energy shares were trading at 32.5 cents, as its stocks jumped by 4.5 cents or 16.07 percent.