Environmental approval from the Western Australia Government’s Department of Mines, Petroleum and Exploration for its Well Drilling Environment Plan, has cleared the way for Buru Energy Ltd (ASX:BRU, OTC:BRNGF)’s 2026 Rafael resource appraisal campaign, a key step in advancing the 100% owned Rafael Gas Project in exploration permit EP 428.
Drilling is planned to begin in the second quarter of 2026, subject to completion of the upstream funding partner selection process. A Final Investment Decision is scheduled for the second half of 2026, with first cashflows projected from 2028.
Chief executive officer Thomas Nador described the approval as a vital milestone in maintaining momentum towards first production.
“The approval of the drilling Environmental Plan for the planned 2026 Rafael appraisal activities is key to maintaining the momentum of the Rafael Gas Project and planned first cashflows in 2028,” he said.
Nador added that the approval supports Buru’s drive to attract a funding partner by offering a low-risk entry option into a valuable gas project with long-term growth potential.
Key details of the appraisal program
The approved plan covers two major activities: drilling of the high-impact Rafael 2H well, from the existing Rafael 1 pad, and recompletion of the Rafael 1 well with a sidetrack.
Both wells are likely to include horizontal sections to maximise reservoir contact and improve deliverability. Flow testing will form part of the campaign. The approval also provides flexibility to deepen Rafael 2H to test the Flying Fox exploration target, offering an additional upside opportunity.
Strategic partnership with Clean Energy Fuels Australia
The appraisal results are expected to support the Strategic Development Agreement signed in April 2025 with Clean Energy Fuels Australia (CEFA).
Under the agreement, CEFA would finance, build, own and operate a small-scale Liquefied Natural Gas (LNG) plant at Rafael 1 with a capacity of up to 300 tonnes per day, along with associated condensate infrastructure.
This framework sets the stage for future binding contracts and provides an important commercialisation pathway for Rafael gas.
Buru Energy opens A$3 million share purchase plan following successful $2 million placement
Buru last week launched its Share Purchase Plan (SPP), allowing eligible shareholders to apply for up to A$30,000 of new fully paid ordinary shares at an issue price of 2.0 cents per share.
Read more: Buru Energy launches share purchase plan to raise up to A$3M
The SPP builds on the company’s recent placement, announced on September 1, 2025, which raised approximately A$2 million from institutional, professional and sophisticated investors at the same issue price.
The combined funds will be used to continue the momentum of the Rafael Gas Project toward Final Investment Decision in 2026.