Dear Shareholders,
This is the first annual report in 16 years since Buru was listed in 2008 that Eric Streitberg has not been a director. He was Chairman for 11 years and instrumental in developing and growing the Company’s core Canning Basin business. I acknowledge and thank Eric for his dedication and significant contribution.
Buru has developed deep connections with the Kimberley community and the Government. We acknowledge and thank the Traditional Owners of the areas in which we operate. We deeply respect their connection to country and understand our role to ensure that our activities create benefit for all parties. We will strive to maintain and further improve these relationships with trust and commitment.
I was appointed a Non-executive Director of your company in July 2024 and elected as Chair in August 2024. The skills required for the development of the Rafael Gas Project are consistent with my executive and leadership career. This is what attracted me to Buru Energy.
The global and Australian energy scene is undergoing a significant transition. It is becoming increasingly evident that the pace of the transition is not going to be as rapid as some may hope and the costs will be higher. It is also very clear that gas is a vital enabler and a required energy form as a part of the transition.
In this context, the Rafael conventional onshore gas discovery in the Canning Basin late in 2021 provides Buru Energy with a unique opportunity to:
- enable the energy transition in the greater Kimberley region; and
- provide significant long-term economic benefit and growth for both the Company’s shareholders and the other stakeholders in the broader Kimberley community.
The competition and alternative to Rafael gas and condensate is much higher cost energy and gas and liquid fuels (such as diesel) which are all imported from outside the greater Kimberley region.
It is imperative that the Company prioritise what is required to deliver on the development of the valuable Rafael Gas Project. This has required some significant changes including: divesting non-core assets; reducing costs; and prioritising capital allocation and resources to the development of the Rafael Gas Project.
The successful development of gas projects, such as Rafael, requires a carefully coordinated and managed integration of multiple work streams and prudent risk management. Uppermost in the mind of your Board is ensuring the Rafael Gas Project is set up for success whilst ensuring appropriate funding which balances the return for shareholders and risk. The selection of partners who complement the skills and capabilities of Buru will be important.
To establish the long-term strong foundation cash flow the Rafael Gas Project can deliver from late 2027, careful management of this project will remain the priority of the Board in the year ahead.
When I joined the Board in July 2024, the Company was preparing for a two well Canning Basin drilling campaign to be funded by Sabre Energy Pty Ltd. In September 2024 it became clear that Sabre did not have access to the funds they had committed and separately verified. Quick action was undertaken by the Buru Board and Management. The campaign was reduced to one well and alternative funding put in place, Dear Shareholders, This is the first annual report in 16 years since Buru was listed in 2008 that Eric Streitberg has not been a director. He was Chairman for 11 years and instrumental in developing and growing the Company’s core Canning Basin business. I acknowledge and thank Eric for his dedication and significant contribution. CHAIR’S LETTER 4 Buru Energy Ltd – Annual Report 2024 including a placement to some large existing and new shareholders. Further information on this is provided in the CEO Report and Review of Operations.
Options to restart the Ungani oil field production remain under review. Engagement with parties linked with potential crude oil offtake and sales is continuing for this late life asset.
The company’s refined and clearly focussed strategy is appropriate for a company of our size.
On behalf of the Board, I express my appreciation to shareholders for their support and patience. I acknowledge that the share price has declined during a year of challenge and change. The priority focus on the Rafael development and delivery of the key milestones will hopefully underline improved outcomes for shareholders.
I thank my fellow directors, the management team and all staff for their hard work, support and resilience in what has been a difficult year. In particular, I thank and acknowledge our CEO, Thomas Nador, who has led the team with clarity and clear purpose.
We look forward to achieving and reporting on key milestones in the year ahead.
David P Maxwell
Independent Non-Executive Chairman
24 March 2025
