Buru Energy advances its Rafael Gas Project with strong funding interest and a $2.35 million capital raise, setting the stage for critical 2026 drilling and resource validation.
- Global funding process underway for 2026 Rafael drilling program
- Share Purchase Plan raised $2.35 million before costs
- Planning progressing for Rafael 2H and Rafael 1 well recompletion
- Engagement with parties for equity interest in Mars Prospect continues
- Cash position at $4.1 million with no debt, environmental approvals advancing
Funding Momentum Builds for Rafael Gas Project
Buru Energy Limited has kicked off a global search for strategic funding partners to finance its 2026 Rafael resource and flowrate validation program. This initiative is critical to advancing the Rafael Gas Project, a cornerstone asset in Buru’s portfolio located in the Kimberley region of Western Australia. Multiple international and domestic parties, including energy producers, utilities, and financial investors, are currently conducting due diligence, reflecting strong market interest in the project’s potential.
The funding sought, estimated at around A$40 million, will support drilling the Rafael 2H well, recompleting the Rafael 1 well, and extended flow testing to underpin independent reserves certification. These steps are essential for finalising field development plans and securing binding agreements with midstream partner Clean Energy Fuels Australia (CEFA), aiming for a Final Investment Decision (FID) in the second half of 2026.
Capital Raising and Financial Position
In late 2025, Buru successfully completed a Share Purchase Plan (SPP) and a shortfall placement, raising approximately $2.35 million before costs. Combined with previous capital raises, the company has bolstered its cash reserves to $4.1 million as of 31 December 2025, maintaining a debt-free balance sheet. This financial footing supports ongoing development activities and working capital needs ahead of the 2026 drilling campaign.
Cash flow statements reveal disciplined expenditure, with outflows focused on exploration and appraisal activities, care and maintenance of the Ungani Oilfield, and corporate administration. The company’s prudent financial management ensures it remains well-positioned to navigate the next phases of project development.
Exploration and Project Development Highlights
Well planning for the Rafael drilling program is maturing, with designs incorporating horizontal sections to optimise gas deliverability and reserves. The drilling campaign is scheduled for the June quarter of 2026, pending final environmental approvals and Traditional Owner agreements expected in the first half of the year.
Additionally, Buru is evaluating the potential to test the Flying Fox prospect, located beneath the main Rafael field, which holds significant prospective gas and condensate resources. This could be integrated into the Rafael 2H well drilling, offering a cost-effective opportunity to expand resource potential.
On the oil front, the Mars Prospect near the Ungani Oilfield continues to attract interest from potential farmout partners. Success here could provide strategic optionality and additional funding avenues for Buru’s broader development plans.
Outlook and Strategic Importance
CEO Thomas Z Nador emphasised the company’s commitment to delivering long-term cash flows starting in 2028 and contributing to Western Australia’s energy security. The combination of securing funding, advancing drilling plans, and progressing regulatory approvals positions Buru to make a decisive step forward in 2026.
While uncertainties remain around funding finalisation and drilling outcomes, the company’s proactive approach and strong market engagement provide a solid foundation for the next chapter in its development journey.
Bottom Line?
Buru Energy’s 2026 drilling and funding efforts will be pivotal in transforming the Rafael Gas Project from exploration to production, with market eyes keenly watching upcoming milestones.
Questions in the middle?
- Which parties will ultimately partner with Buru to fund the Rafael drilling program?
- What impact will the Flying Fox prospect testing have on overall resource estimates?
- How will regulatory and Traditional Owner approvals influence the project timeline?