Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has received approval from the Western Australian Government Department of Mines, Petroleum and Exploration (DMPE) for a two-year extension to apply for a Petroleum Production Licence or a Petroleum Retention Lease over the Rafael gas and condensate field, located within Exploration Permit EP 428 in the Canning Basin.
The extension preserves Buru’s development timeline for the Rafael Gas Project, allowing the company to progress towards first production while retaining the flexibility to lodge a licence application upon completion of key project milestones.
Buru charts clear path to production at Rafael Gas Project
Buru continues to advance its transition from explorer to producer, with first gas and cashflow from the Rafael Gas Project in the Kimberley region targeted for the second half of 2027.
Rafael, located in the Canning Basin, is the only proven conventional gas and condensate discovery in the Kimberley. It is underpinned by a high-confidence 1C contingent resource of 85 billion cubic feet (Bcf) of gas and 1.8 million barrels of condensate.
The project is expected to provide a reliable regional energy supply while delivering stable long-term cashflow for the company.
Strategic infrastructure partnership
Buru’s progress is supported by a recently announced strategic partnership with Clean Energy Fuels Australia (CEFA). Under the agreement, CEFA will finance, build, own and operate the downstream infrastructure for liquefied natural gas (LNG) and condensate.
This model limits Buru’s capital requirements to upstream drilling and development, with CEFA earning a processing tariff. The arrangement also includes provisions for joint marketing and revenue sharing based on gas and condensate pricing, enhancing Buru’s exposure to market upside.