Buru secures environmental nod for 2026 WA gas resource well

Buru Energy has clinched the environmental nod from the Western Australian government for its 2026 Rafael gas resource appraisal campaign. 

The well environmental plan greenlights the company’s next steps to unlock the Canning Basin project, paving the way towards drilling in the first half of next year. 

The approval covers the drilling of Buru’s high-impact Rafael 2H well - previously dubbed Rafael B - from the existing Rafael 1 well pad. It also covers recompleting the Rafael 1 well with a sidetrack. Both wells may feature horizontal sections to boost gas flows for resource estimates.

The approval also opens the door to deepen Rafael 2H to test the company’s promising Flying Fox exploration target, identified in recent 3D seismic data. 

A successful appraisal would notch up Rafael’s already impressive resource base from an estimated 85-523 billion standard cubic feet of gas and 1.8-10.6 million barrels of condensate. 

The campaign hinges on Buru securing an upstream funding partner, but it largely de-risks the 2026 drilling program and bolsters Buru’s path to a final investment decision in 2026. 

Buru Energy chief executive officer Thomas Nador said: “The approval of the drilling environmental plan for the planned 2026 Rafael appraisal activities is key to maintaining the momentum of the Rafael gas project and planned first cash flows in 2028. The approval is important as it supports our ongoing activities to secure a funding partner for the activity, looking for a low-risk entry option to participate in a valuable gas business with growth.”

First cash flows from Rafael are slated for 2028, positioning Buru as a key player in the Kimberley’s energy future. The environmental plan approval aligns with Buru’s strategic partnership with Clean Energy Fuels Australia (CEFA) earlier this year. 

CEFA will fully finance, build, own and operate a small-scale LNG plant at Rafael 1 capable of processing up to 300 tonnes of gas per day should its appraisals be successful. 

A low-risk appraisal outcome will cement the groundwork for binding contracts with CEFA, fast-tracking the project’s commercialisation.

Buru’s focus remains on securing a funding partner to underpin the drilling campaign. 

The company sees the environmental approval as the critical step in attracting cornerstone investment for a low-risk entry into a high-value gas business. 

Discovered in 2021, Rafael is the only proven conventional gas and liquids resource in WA’s Kimberley region. Its development dovetails with the WA government’s 2023 policy allowing up to 85 per cent of Canning Basin gas to be exported, with 15 per cent reserved for domestic use. 

The policy shift enhances Rafael’s commercial appeal, particularly for supplying LNG to remote mining operations and communities reliant on costly diesel. 

With drilling set for 2026 and a final investment decision looming, Buru looks poised to transform Rafael into a cornerstone energy asset for the Kimberley region. The company’s now derisked project can turn its focus to commercialisation efforts as Buru charges toward drilling, an FID and, hopefully, first gas.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au