Buru Energy and CEFA Partner to Advance Rafael Gas Project in Western Australia

Highlights

• Buru Energy formalizes agreement with Clean Energy Fuels Australia for joint development of the Rafael Gas Project

• CEFA to build and operate small-scale LNG facility, while Buru focuses on upstream gas infrastructure

• Project aims to generate positive cash flows with key milestones set for development and testing

Buru Energy Ltd (ASX:BRU, OTC:BRNGF), operating in the oil and gas exploration and production sector, has entered a new strategic development agreement with Clean Energy Fuels Australia Pty Ltd (CEFA) to jointly progress the Rafael Gas Project, located in Western Australia. The collaboration brings together Buru’s upstream expertise with CEFA’s capabilities in midstream and downstream operations, further supported by CEFA’s affiliation with global infrastructure investor I Squared Capital.

CEFA to Lead LNG Infrastructure Development

Under the agreement, CEFA will oversee the construction, ownership, and operation of a small-scale liquefied natural gas (LNG) facility situated at the Rafael-1 site. This facility will handle processing and distribution activities, allowing Buru to concentrate solely on the upstream segment of the project. The upstream responsibility includes the development and management of two wells.

By assigning midstream and downstream components to CEFA, Buru reduces its overall capital exposure. The project’s structure enables streamlined operations and is designed to accelerate progress through distinct development phases.

Upstream Focus for Buru Energy

Buru will continue to manage the upstream infrastructure and has outlined plans for further work at the Rafael-1 discovery well. The well is scheduled for re-completion and testing within the current year, a move aimed at securing reserve certification from independent assessors. A second well is also planned at the same site, with work expected to commence the following year.

These two wells will serve as feedstock sources for the LNG plant and form the basis of the upstream component. This focused approach aligns with Buru’s broader strategy to deliver production capacity while minimizing exposure to downstream complexities.

Timeline for Development and Production

The final investment decision for the Rafael Gas Project is anticipated by the end of next year or early the year after. Development planning is already underway, including preparations involving technical assessments, engagement with Traditional Owner groups, and securing regulatory clearances.

Buru has indicated that the first phase of cash generation is expected to commence in the second half of the year following the investment decision. The company has emphasized that projected annual free cash flow from the Rafael Project exceeds its current market value, underscoring the scale of the development in relation to its size.

Midstream Strength and Financial Backing

CEFA’s involvement in the project brings access to significant infrastructure development experience, with backing from a global asset manager known for its presence in the energy infrastructure domain. This strategic alignment allows the Rafael Gas Project to benefit from established midstream and downstream capabilities, without placing additional financial demands on Buru for those segments.

Energy Market Relevance

The Rafael development positions Buru Energy within the broader scope of Energy Stocks, ASX 200, reinforcing its role in the evolving energy landscape of Western Australia. With its upstream responsibilities clearly defined and downstream operations entrusted to a partner with extensive industry experience, Buru Energy (ASX:BRU) continues to build momentum toward a structured and phased project rollout.

Preparatory work is ongoing, including activities related to reserve certification, re-completion of existing wells, stakeholder engagement, and technical design. The company remains focused on executing its upstream strategy while supporting broader project milestones.