How Buru Energy’s New Prospect and $4.4M Raise Could Transform Rafael Project
Buru Energy secured key government approvals and identified a promising new gas prospect beneath its Rafael field, while raising $4.4 million to fund development activities. The company is gearing up for a Final Investment Decision in 3Q 2026, aiming for first material cash flow by 2028.
- Two-year extension granted for Rafael Production Licence application
- Environmental approval received for 2026 Rafael appraisal drilling
- Discovery of Flying Fox Prospect with significant gas and condensate potential
- Divestment of non-core assets including 2H Resources Pty Ltd completed
- Raised $4.4 million through share placement and purchase plans
Strategic Approvals Extend Rafael Project Timeline
Buru Energy has secured a crucial two-year extension from the Western Australian government to apply for a Production Licence over its Rafael Gas and Condensate Field. This extension provides the company with additional time to mature technical and commercial aspects of the project, a vital step as it moves towards a Final Investment Decision (FID) targeted for early third quarter 2026.
Complementing this, Buru also received environmental approval for its planned 2026 resource appraisal campaign at Rafael, clearing a significant regulatory hurdle ahead of the upcoming drilling program. These approvals underscore the government’s support for the project and help de-risk the pathway to development.
Flying Fox Prospect – A Potential Game-Changer
In a notable exploration success, Buru identified the Flying Fox Prospect beneath the existing Rafael accumulation. This new prospect is estimated to hold between 60 and 614 billion cubic feet of gas and 1.2 to 12.6 million barrels of condensate, with a best estimate of 247 Bscf and 5 million barrels respectively. The prospect lies approximately 500 meters below Rafael’s current targets and could significantly expand Buru’s resource base if proven.
The company plans to test Flying Fox by drilling deeper at the Rafael B location, potentially unlocking additional production opportunities that would enhance the overall project economics.
Asset Rationalisation and Capital Raising Strengthen Focus
During the quarter, Buru completed the sale of its subsidiary 2H Resources Pty Ltd and certain non-core exploration blocks in the Canning Basin to Koloma Australia Pty Ltd for up to $2 million. This divestment marks the conclusion of Buru’s non-core asset rationalisation, allowing the company to concentrate capital and management efforts on the Rafael Gas Project.
To fund ongoing development activities, Buru successfully raised a total of $4.4 million through a combination of a share placement, a share purchase plan, and a shortfall placement. These funds are earmarked to support the strategic development agreement with Clean Energy Fuels Australia (CEFA), Buru’s development partner.
Financial Position and Corporate Updates
As of 30 September 2025, Buru reported a cash balance of $3.2 million with no debt, reflecting prudent financial management amid active project development. The company also acknowledged the retirement of Non-Executive Director Robert Willes, reducing the board to three non-executive members as part of ongoing cost management initiatives.
CEO Thomas Nador emphasized the company’s commitment to advancing Rafael towards FID and delivering material cash flow by 2028, highlighting the project’s potential to transform energy supply in northern Western Australia.
Bottom Line?
With regulatory green lights and fresh capital in hand, Buru Energy is poised to unlock Rafael’s full potential, but upcoming drilling results will be critical to sustaining momentum.
Questions in the middle?
- Will the Flying Fox drilling confirm the prospect’s resource estimates and commercial viability?
- How will Buru’s partnership with CEFA evolve as it approaches the Final Investment Decision?
- What impact will the divestment of 2H Resources and non-core assets have on Buru’s long-term growth strategy?
