Buru Energy Ltd (ASX:BRU, OTC:BRNGF) has welcomed a recommendation by the Western Australian Environmental Protection Authority (EPA) to approve the Valhalla Gas Project exploration and appraisal program.
The recommendation supports plans to advance appraisal activity in the onshore Canning Basin, as Western Australia looks to secure additional domestic gas supply.
“The EPA’s recommendation for Black Mountain Energy’s Valhalla Project is a win for the entire Canning Basin and for Western Australia. It signals to investors and the community that the Canning Basin is open for responsible, regulated energy development. The large scale of Valhalla, combined with Buru’s significant unconventional discovery at Yulleroo and our conventional Rafael Gas Project, positions the Canning Basin as a critical contributor to Western Australia’s increasingly urgent domestic gas requirements whilst also providing the firming fuel required to support a renewable energy future," Buru CEO Thomas Nador said.
"Buru Energy remains committed to the timely development of the Rafael Gas Project and looks forward to the continued progress of the Valhalla Project through the final Ministerial and Federal approval processes.”
Domestic gas backdrop and Rafael fast-track
Western Australia’s domestic gas market is tightening as mature offshore fields decline and the state’s energy transition increases demand for dispatchable generation to firm renewable supply.
Against that backdrop, new onshore projects are being positioned as potential contributors to future supply, including Buru’s conventional Rafael Gas Project and Black Mountain Energy’s Valhalla Project, which is focused on unconventional resources.
Rafael is a 100%-owned Buru asset and is described as the first proven, significant conventional gas discovery in the Canning Basin.
The project is being progressed toward a final investment decision (FID), with first cash flows targeted to commence in 2028, aimed at delivering a domestic gas supply option with relatively low development complexity.
Other basin optionality: Yulleroo
Beyond Rafael, the company also holds the Yulleroo discovery, an unconventional wet gas (condensate) accumulation in the Canning Basin.
Yulleroo was discovered by ARC Energy in 2008 (Yulleroo 1) and later appraised through 2013, confirming gas hosted in low-permeability sandstones (tight gas) within the Carboniferous-aged Laurel Formation.
Environmental conditions in focus
The EPA recommendation includes strict environmental conditions, with regulatory oversight viewed as central to maintaining a social licence to operate.
If progressed through appraisal, the Valhalla work program is expected to be closely monitored to manage potential impacts and protect biodiversity and cultural heritage values in the region.