Buru Energy Ltd (ASX:BRU, OTC:BRNGF) says it is in advanced discussions with a range of domestic and international investors to fund a planned A$40 million drilling and appraisal program at its Rafael Gas Project in Western Australia’s onshore Canning Basin, a key step towards reserves certification and a Final Investment Decision (FID) targeted for 2026.
The company said multiple parties are currently undertaking due diligence as part of a global funding process aimed at underpinning a 2026 resource and flowrate validation campaign, with commitments expected to enable procurement of long-lead drilling items early next year. Successful execution would keep Buru on track to target first long-term cashflows from Rafael from 2028.
Funding process gains momentum
Buru said multiple international and domestic parties are currently undertaking due diligence as part of the funding process, which is aimed at raising around A$40 million for the 2026 drilling and appraisal campaign.
Interested groups include upstream E&P companies, utilities, commodity traders, asset managers, investment banks, institutional investors, private equity, private credit and royalty companies. The current phase of the process is expected to conclude in the first quarter of 2026, allowing commitments to be made for long-lead drilling items.
The company said the funding process will continue through the Christmas and New Year period and into early 2026.
Clear pathway to FID
Securing funding for the resource and flowrate validation program is a primary condition to finalising binding agreements with Buru’s strategic development partner, Clean Energy Fuels Australia (CEFA), and reaching FID in the second half of 2026.
Under a Strategic Development Agreement executed earlier this year, CEFA will finance, build, own and operate a liquefied natural gas (LNG) facility with capacity of up to 300 tonnes per day to support the Rafael Gas Project.
Buru said regulatory approvals have already been secured for the planned 2026 drilling campaign, with the Well Drilling Environment Plan approved by the Western Australian Government in September 2025.
Drilling program planned for 2026
The 2026 program includes drilling the Rafael 2H well — previously referred to as Rafael B — and recompleting the existing Rafael 1 well, potentially with horizontal sections. Drilling is currently targeted to begin in the second quarter of 2026, subject to the outcome of the upstream funding process.
Completion of the program is expected to support independent reserves certification and provide the technical foundation required to advance the project towards development.
Portfolio rationalisation and cost discipline
Buru also highlighted a series of strategic and operational milestones achieved during 2025, including identifying a lower-risk pathway to resource validation and securing environmental approval for the 2026 appraisal campaign.
The company said it has streamlined its business following a major review in late 2024, reducing headcount by 40%, cutting general and administrative costs by around $3 million annually, and reducing exploration permit areas in the Canning Basin by 60%.
Buru has also divested non-core assets, raised $4.4 million through a placement and share purchase plan, and maintained a debt-free balance sheet as it focuses on progressing Rafael towards development.
Looking ahead to 2026, Buru plans to secure funding for the validation program, conduct drilling operations, finalise commercial terms with CEFA, obtain remaining environmental and traditional owner approvals, and take FID in the second half of the year.