Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has signed binding agreements to sell its natural hydrogen and helium subsidiary 2H Resources Pty Ltd, along with a package of non-core exploration acreage in Western Australia’s Canning Basin, to Koloma Australia Pty Ltd in a deal worth up to $2 million.
The sale marks a significant step in Buru’s strategic pivot towards advancing its flagship Rafael Gas Project, following a comprehensive business review in late 2024. The transaction transfers control of 2H Resources’ national portfolio of hydrogen and helium tenements to Koloma, a global leader in geologic hydrogen exploration and production.
“The divestment of Buru’s 2H Resources subsidiary is consistent with our focus and discipline to commercialise the Rafael gas and condensate resource and building a Kimberley-based gas business that will generate enduring material cashflows and shareholder returns,” said Buru CEO Thomas Nador.
Deal terms and strategic rationale
Under the terms of the agreements, Koloma will acquire 100% of 2H Resources’ shares and exploration licence interests spanning South Australia, Tasmania, and Western Australia. The deal also includes specific graticular blocks in the Canning Basin that Buru had previously earmarked for relinquishment as part of its portfolio rationalisation.
The acquisition consideration includes an initial cash payment of $1 million, with additional staged payments of up to $1 million contingent on the conversion of key South Australian exploration licence applications. Completion of both the share sale and asset transfer is subject to regulatory approvals.
Importantly, Buru has retained a tradable option to re-enter any future hydrogen discovery by 2H Resources, allowing it to acquire up to 30% or $100 million of a potential development.
Refocusing on Rafael and the Kimberley gas strategy
The divestment aligns with Buru’s broader goal of concentrating resources on its Rafael conventional gas and condensate discovery in the Canning Basin, which it views as the foundation for a long-term, regionally anchored energy business.
Rafael, the only proven conventional gas and condensate discovery in the Kimberley, is expected to provide a reliable regional energy supply while delivering stable long-term cashflow for the company.
In recent years, Buru has been progressively streamlining its operations — notably offloading its interest in the Barbwire Terrace base metals project in January — and redirecting capital toward its core upstream gas ambitions.
The 2H Resources exit follows several technical and tenement advances that had de-risked the hydrogen and helium portfolio but also signalled the need for significant further investment to commercialise the opportunity.
Koloma’s entry into the Australian hydrogen sector
The transaction represents Koloma’s first major asset acquisition in Australia since launching its local subsidiary earlier this year. Backed by more than US$380 million in funding and headquartered in Denver, Colorado, in the US, Koloma is positioning itself as a frontrunner in the emerging geologic hydrogen space.
“Koloma Australia’s acquisition of 2HR is our next step in building a scientifically based, commercially robust and risk-balanced portfolio of natural hydrogen assets in Australia,” said Koloma Australia president Dr Trey Meckel.
The company plans to work closely with joint venture partners, governments and investors as it ramps up an ambitious hydrogen exploration and drilling campaign across the country, riding the global shift towards cleaner energy systems.
Nador called the deal a testament to the quality of 2H Resources’ work assembling a portfolio of Australian assets.
“It is now time to hand over the reins to a credible and experienced global player to progress the portfolio to its next phase of value creation,” he said. “I wish Koloma every success in maturing this exciting field of exploration for the potential benefit of humanity.”
Completion of the deal is expected later this year, pending regulatory approvals.