Buru Energy on track to move to producer status with Rafael Gas Project
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Buru Energy Ltd's transformation from explorer to producer is progressing well, setting a clear pathway to deliver first gas and cashflow from its flagship Rafael Gas Project in the Kimberley region by the second half of 2027.
Located in the Canning Basin, Rafael is the only proven conventional gas and condensate discovery in the Kimberley.
It is supported by a high-confidence 1C contingent resource of 85 billion cubic feet (Bcf) of gas and 1.8 million barrels of condensate.
Buru aims to bring the project online by the second half of 2027, delivering long-term regional energy supply and stable cash flow. Strategic partnership
A significant enabler of the project is Buru’s strategic partnership with Clean Energy Fuels Australia (CEFA), announced earlier this month.
Under this agreement, CEFA will finance, build, own and operate the liquefied natural gas (LNG) and condensate infrastructure, limiting Buru’s capital exposure to upstream well costs and a processing tariff.
Joint marketing and a mechanism to share upside from gas and condensate pricing are also included in the commercial framework.
Key 2025 activities
Buru has outlined a series of key 2025 activities required to reach a final investment decision (FID), expected in the December quarter or early 2026.
These include flow testing and recompletion of the Rafael 1 well, bankable reserves certification, gas and liquids marketing, agreement making with Traditional Owners, and securing environmental and development approvals.
Overhaul Kimberley energy system
The project has strategic relevance, aligning with the Western Australian Government’s plan to overhaul the Kimberley energy system by 2028.
Currently, gas is trucked up to 1,400 kilometres from the Pilbara, while more than 120 remote communities depend on diesel for power.
Rafael offers a locally sourced, lower-emission solution, with the potential to supply regional energy needs for up to 20 years and provide a diesel substitute for industrial use. Significant value creation
Economic screening highlights significant value creation, with an estimated A$400 million pre-tax NPV at a A$15 per gigajoule gas price and A$1.50 per litre for condensate.
Based on a planned production profile of 14 terajoules per day, or approximately 300 tonnes of LNG and 250 barrels of condensate daily, projected annual pre-tax operating cashflows stand at approximately A$70 million—more than double Buru’s current market capitalisation of A$30 million.
With a strong resource base, aligned regulatory conditions, and a capital-efficient development model, Buru Energy is positioning Rafael as the foundation for a long-term, regionally focused energy business in northern Western Australia.
pro - activeinvestors.com.au/companies/news/1069577/buru-energy-on-track-to-move-to-producer-status-with-rafael-gas-project-1069577.html
BRU Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
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