Buru Energy Ltd earlier this week outlined details of a new strategic development agreement with Clean Energy Fuels Australia Pty Ltd (CEFA) to co-develop the Rafael Gas Project in Western Australia.
Highlights
- Buru Energy entered a strategic agreement with Clean Energy Fuels Australia (CEFA) to co-develop the Rafael Gas Project.
- CEFA brings strong midstream and downstream expertise, backed by I Squared Capital with $40 billion in assets under management.
- CEFA will build and operate a small-scale LNG facility; Buru retains responsibility for upstream development (two wells).
- The project significantly reduces Buru’s capital requirements to just upstream infrastructure.
- Rafael-1, the discovery well, will be re-completed and tested in 2025 for reserve certification.
- A second well is planned for 2026 from the same site.
- Final investment decision expected late 2025 or early 2026.
- First cash flows anticipated in the second half of 2027.
- Projected annual free cash flow from Rafael exceeds Buru’s current market capitalization.
- Preparatory work includes approvals, agreements with Traditional Owner groups, and technical planning.
Downstream and midstream support
Buru said CEFA would take responsibility for the downstream and midstream components of the project. It highlighted that CEFA is backed by I Squared Capital, which manages around USD 40.00 billion in infrastructure assets globally.
Buru Energy told investors that CEFA will finance, build, own, and operate a small-scale LNG facility at the Rafael-1 well site. Buru will pay a processing fee over the life of the project, while remaining responsible for upstream infrastructure — specifically, two gas wells.
The company said the existing Rafael-1 discovery well will be re-completed and tested in 2025 to support independent reserve certification. A second well is planned for 2026. Both wells will feed the LNG facility.
It expects to make a final investment decision by late 2025 or early 2026. First cash flows are anticipated in the second half of 2027.
According to Buru Energy, projected free cash flows from Rafael are expected to exceed its current market capitalisation.
The company also noted ongoing activities to support the development, including re-completions, reserve conversion, regulatory approvals, and engagement with Traditional Owner groups.
Buru Energy said its internal team remains focused on delivering Rafael and positioning the company for material cash generation from 2027.