Buru Energy Delays Final Investment Decision by Six Months, Targets Late 2027 Production
Buru Energy revises its Rafael Gas Project development plan, prioritising drilling the Rafael B appraisal well in mid-2026 and delaying the Final Investment Decision by six months, while maintaining first production for late 2027.
- Rafael B appraisal well drilling moved to June quarter 2026
- Final Investment Decision delayed by six months to early Q3 2026
- First production target remains late 2027
- Revised drilling sequence aims to reduce risk and improve reserves confidence
- Buru advancing regulatory approvals, traditional owner agreements, and funding partnerships
Project Update and Strategic Shift
Buru Energy Limited has announced a significant update to the development timeline of its 100% owned Rafael Gas Project, located in Western Australia's onshore Canning Basin. The company will now drill and test the Rafael B appraisal well before recompleting the original Rafael 1 well. This change in sequence is designed to reduce operational risk and enhance the confidence in the project's reserves.
The drilling and testing activities are now scheduled to commence in the June quarter of 2026, a shift from earlier plans. Consequently, the Final Investment Decision (FID) has been deferred by six months to early Q3 2026. Despite this delay, Buru maintains its target for first production by late 2027, aligning with previous projections.
Technical Rationale Behind the Change
The decision to prioritise Rafael B follows detailed technical assurance processes and third-party expert assessments. The original Rafael 1 well, tested in 2022, showed promising flow rates of over 7 million cubic feet per day of high-quality gas and condensate. However, evidence suggests that the wellbore near the targeted flow zone may have been compromised during prior drilling and testing, potentially limiting its performance.
By drilling Rafael B first, Buru expects to obtain a more representative production flow test and independent reserves certification. Both wells are planned to include horizontal sections to optimise gas deliverability and maximise ultimate reserves, which is critical for underpinning a robust FID and project economics.
Broader Project Context and Regional Impact
The Rafael Gas Project represents a unique opportunity to supply local gas and condensate to northern Western Australia, including the Kimberley region, reducing reliance on trucked or imported fuels. The project aligns with the Western Australian Government’s plans to overhaul the Kimberley energy system by 2028, supporting regional energy security and economic development.
Buru is concurrently progressing regulatory approvals, traditional owner agreements, and gas marketing arrangements, while actively seeking an upstream partner to share funding responsibilities. The company has initiated dataroom activities to facilitate this process, signalling openness to various partnership structures.
Looking Ahead
While the revised timeline introduces a modest delay, the strategic shift reflects a cautious and data-driven approach to de-risking the project and enhancing its value proposition. The collaboration with Clean Energy Fuels Australia for the small-scale LNG facilities remains central to the development concept.
Investors and stakeholders will be watching closely as Buru advances drilling preparations for Rafael B and finalises funding arrangements, which will be pivotal in confirming the project’s commercial viability and unlocking its full potential.
Bottom Line?
Buru’s recalibrated approach to Rafael appraisal balances risk and reward, setting the stage for critical milestones in 2026.
Questions in the middle?
- Will Rafael B drilling confirm higher reserves and improve project economics?
- How will the search for an upstream partner influence project funding and timelines?
- What impact will regional regulatory and traditional owner approvals have on development progress?
