Buru Energy provides the following update regarding the progress of its 100% owned Rafael Gas Project located in the Canning Basin, approximately 150 km east of Broome and approximately 85 km south of Derby in the Shire of Derby-West Kimberley, Western Australia.  

The Rafael Gas Project (Project) is targeting the replacement of long-haul trucked or imported fuel used for power generation and mining in the northwest of Western Australia with a local source of trucked Liquified Natural Gas (LNG) and liquids, supporting the development of new market opportunities in the region, and delivering projected long term cashflows from 2H 2027. 

Highlights

• Buru has executed a Strategic Development Agreement (SDA) with Clean Energy Fuels Australia Pty Ltd (CEFA) to co-develop the Rafael Gas Project. 
• The SDA provides a clear pathway to building a valuable long-term gas and condensate business in the northwest of Western Australia, combining Buru’s upstream resource and expertise with CEFA’s strong downstream and midstream capabilities, strong financial backing and incumbency in the Western Australian domestic LNG market. 
• CEFA, an Octa Group portfolio company has a track record of developing and operating small scale LNG infrastructure assets in Australia. Octa Group is owned by I Squared Capital (ISQ), a top 5 global infrastructure fund with US$40 billion in assets under management. 
• Buru and CEFA have agreed a business model as the basis for future binding agreements, expected to be executed in late 2025. CEFA will fully finance, build, own and operate an LNG plant with a capacity of up to 300 tonnes per day and associated condensate infrastructure on the Rafael 1 wellsite. 
• CEFA/Octa Group will be responsible for the midstream elements of the Project involving the distribution of LNG and condensate to end users. 
• Buru and CEFA will work together to conduct sales and marketing with customers. 
• CEFA’s investment in the Rafael Gas Project will be recovered through gas processing fees charged to Buru over an estimated 20-year production life, the terms of which will be negotiated over the coming months. 
• Buru is responsible for the financing, construction and operation of the upstream elements of the Project, which currently consist of two wells (including the Rafael 1 discovery well), Native Title negotiations and Western Australian State Government environmental approvals for the small footprint Project. 
• Buru is pursuing several options to fund its 2025 Rafael 1 well recompletion and testing program to support independent certification of the Rafael reserves, and the drilling of a development well in 2026. Reserves certification is a key condition precedent to binding agreements with CEFA. 
• Final Investment Decision for the Project is planned for late 2025 / early 2026, with robust cashflows targeted to commence from 2H 2027.

Buru CEO, Mr Thomas Nador said: 
“The agreement with CEFA is a watershed moment for Buru and the Rafael Gas Project. It marks a clear demonstration of the Company’s gas strategy and transition from explorer to developer and long-term producer. Rafael is the only confirmed source of conventional gas and liquids in onshore Western Australia north of the North West Shelf Project. It is a unique opportunity to provide energy to a growing market that is not connected to a gas pipeline and currently faces challenges with high energy costs and security of supply. Combining forces with the I Squared backed CEFA/Octa Group is a material development on the path to commercialising the Rafael resource. I look forward to our collective effort to deliver the economically attractive Rafael Gas Project.” 

CEFA/Octa Group CEO and Director, Mr Basil Lenzo commented: 
“We are very pleased to be working with Buru on the Rafael Gas Project as part of our Energy Transition Platform. Our proven virtual pipeline or ‘trucked LNG’ model lowers long-term regional energy costs and emissions and provides a viable alternative to diesel for new and existing energy users.”

KeyFacts Energy: Buru Energy Australia country profile