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Highlights
- Buru Energy (BRU) advances its Rafael Project with key milestones planned for 2025 and beyond.
- The company streamlines its portfolio to focus on core assets and future energy ventures.
- Ungani oilfield resumption and offtake discussions progress to enhance operations.
Buru Energy (ASX:BRU) is making significant strides with its flagship Rafael Project, aiming to deliver long-term energy solutions in the Kimberley region of Western Australia. The project, noted as the only proven conventional gas and liquids resource in the Kimberley, is on track for a final investment decision (FID) by late 2025. First gas production is expected in the second half of 2027, positioning the project as a locally sourced, cost-efficient energy option for the region.
The Rafael Project focuses on providing trucked Liquefied Natural Gas (LNG) to replace long-haul trucked and imported fuels. This low-emissions solution targets power generation and mining sectors in the Kimberley, supporting regional sustainability while improving energy cost efficiency. Buru Energy plans to establish a Kimberley-based gas and liquids business that can generate substantial annual cashflows beginning in late 2027.
To advance Rafael’s progress, Buru Energy (BRU) is prioritising commercial agreements and discussions with key stakeholders. This includes potential LNG facility developers, customers, and funding partners. The company aims to execute gas and liquids offtake agreements by the first quarter of 2025. Discussions with the Northern Australia Infrastructure Facility (NAIF) are also underway to explore financing opportunities.
On the technical front, Buru has conducted enhanced geological imaging for Rafael, particularly in the Ungani Dolomite reservoir. These subsurface imaging efforts have strengthened confidence in resource estimates and well productivity ahead of planned on-ground activities in 2025.
Additionally, Buru Energy (BRU) is progressing with plans to resume production at the Ungani oilfield. Economic analysis indicates that a production model of 200-250 barrels per day (bopd) is more sustainable than previous models. Discussions with offtake partners and sales parties are ongoing while renegotiations of Native Title agreements and regulatory approvals are prioritised.
As part of its streamlining strategy, Buru Energy is reducing its Canning Basin exploration footprint by over half, cutting costs while retaining high-priority assets. The rationalisation process is set for completion by mid-2025. The company also plans to divest subsidiary businesses, including 2H Resources (focused on hydrogen and helium) and its stake in the Barbwire Terrace Project, in early 2025.
These initiatives underscore Buru Energy’s (BRU) commitment to strengthening its core operations while progressing towards the development of the Rafael Project.
