Dear Shareholders,
I am pleased to present Buru Energy’s Annual Report for 2024.
As we reflect on our journey through the year, I want to express my heartfelt gratitude for your continued support in the Company. This year has been pivotal for us as we advance our plans to establish a Kimberley based gas and liquids business that can generate long term cashflows from late 2027.
The oil and gas sector is undergoing significant transformation, with a growing emphasis on sustainability and the responsible management of natural resources. Despite the ongoing debate about the nature and pace towards decarbonisation, Buru is well-positioned to capitalise on the forecast demand for natural gas in Western Australia, which is essential for both economic development and energy security. Our commitment to sustainable and responsible development continues to guide our forward plans. We are dedicated to minimising environmental impact while maximising economic potential for the company and the communities we serve.
Throughout 2024, we have made substantial progress in moving the Rafael Gas Project forward, achieving milestones that have strengthened our understanding of the Rafael resource base and project feasibility. Our dedicated team, with the support of international experts, has interpreted and analysed the results from the Rafael 3D seismic survey to assess the full potential of this promising conventional gas and condensate discovery – the first of its kind in onshore Western Australia north of Karratha.
This work has further derisked the Rafael Gas Project by confirming that the project can be supported by the identified and internally assessed 1C resource in EP 428 which is 100% owned by Buru Energy.
This high confidence, 1C resource case of 85 Bcf is perfectly sized to meet the current and forecast energy demands of the Kimberley for 20 years. It creates a unique opportunity for the Company to transform the regional energy system by replacing the existing longhaul trucked or imported fuel used for power generation and mining with a local source of trucked Liquified Natural Gas (LNG) and liquids. This provides a cost competitive, secure and emissions reduced source of dispatchable energy for the region.
We are focusing on securing the necessary approvals and partnerships to develop the Rafael Gas Project. In 2025, we are planning to partner with parties who share the same vision for the creation of a regional gas business in the Kimberley as Buru Energy. The Company also plans to re-test the Rafael resource to further derisk the planned development ahead of a Final Investment Decision, currently forecast for late 2025.
Reflecting on our other activities, the year saw the drilling of the Rafael Shallow 1 prospect in EP 428 in October, a high potential oil prospect that was only identified in April 2024. Following the failed farmout of the prospect to Sabre Energy Pty Ltd, drilling of the well took place with the funding support of entities associated with the Company’s long-term shareholders. The decision was taken to test this prospect as a discovery would have added substantial value to Buru and provide an alternate funding path for the Rafael Gas Project. Although the well did not encounter movable hydrocarbons it is important to note that the lack of success at Rafael Shallow 1 does not impact the Rafael Gas Project.
On our Ungani assets, during the year we continued working with third parties to review opportunities to recommence production and sales revenue from the Ungani Oilfield by establishing an alternative regional export route to the previous Wyndham trucking, storage and shipping model. This work is ongoing and will Dear Shareholders, I am pleased to present Buru Energy’s Annual Report for 2024. As we reflect on our journey through the year, I want to express my heartfelt gratitude for your continued support in the Company. This year has been pivotal for us as we advance our plans to establish a Kimberley based gas and liquids business that can generate long term cashflows from late 2027. 6 Buru Energy Ltd – Annual Report 2024 require further technical and commercial assessment during 2025 to underpin a decision on the forward plans for the asset.
One of the critical elements of our development strategy is our commitment to cultural and environmental stewardship. We are actively working to implement best practices in these fields, ensuring that our operations are aligned with the appropriate standards. We understand the importance of preserving the unique environmental and cultural ecosystems of the Kimberley region, and we are dedicated to conducting our activities in a manner that protects this heritage.
I assure you that our commitment to transparency and open communication remains a priority. We understand that our shareholders are vital partners in our journey, and we will continue to provide regular updates on our progress and any developments that may impact our plans and operations. Our corporate governance framework is designed to ensure accountability and integrity in all our dealings, and we are continuously reviewing our policies and practices to align with industry best practices.
During the year we undertook a comprehensive business review and implemented measures to reset the Company’s focus and capital to the development of the Rafael Gas Project, assessed as the most value accretive opportunity in Buru Energy’s portfolio.
The review resulted in a targeted headcount reduction by 40% and measures to deliver a $3 million reduction in annual general and administration expenditure. These measures include the deferral of all non-core Canning Basin exploration activities, a rationalisation of Buru Energy’s acreage position in the basin, and the monetisation of the Company’s 2H Resources and Battmin subsidiary companies or assets.
We will continue to review our activities and practices to ensure all capital and resources are directed toward the realisation of the Rafael Gas Project and the generation of material cashflows from late 2027.
In closing, I extend my sincere appreciation to our shareholders, the Chair and the Board, our talented staff and wide-ranging stakeholders for their support of our Company. Together, we are poised to capitalise on the opportunities that lie ahead. I am excited about the future of the Company and the role it will play in the energy landscape of the Kimberley region.
Thank you for your continued support. We are on a promising path, and I look forward to sharing our progress with you in the coming year.
Thomas Z Nador
Chief Executive Officer
24 March 2025
