Exploration and Appraisal
Rafael Gas Project
The Rafael 1 well is located on Exploration Permit 428 in the Canning Basin, some 50 kilometres to the east of the Ungani Oilfield and some 150 kilometres east of Broome. The well was drilled in late 2021 and defined a significant conventional gas and condensate resource in the Ungani Dolomite equivalent reservoir and in the dolomitised Upper Laurel Carbonate reservoir.
A limited section of the interpreted hydrocarbon column in the Ungani Dolomite reservoir was flow tested in 2022 and confirmed high quality gas with low reservoir CO2, and a high condensate content of 40 barrels per million cubic feet of gas.
Rafael is uniquely positioned; it is the only proven conventional gas and liquids resource located in the greater Kimberley region. The Rafael Gas Project is targeting the replacement of long-haul trucked or imported fuel used for power generation in the region 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.
During the year, the farmout of Buru’s 100% owned Rafael conventional gas and condensate discovery was deferred to allow for specialist technical evaluations to be completed on the Rafael 3D seismic survey data, resulting in the delay of further on-ground Rafael appraisal activities to the 2025 operating season.
These studies subsequently confirmed that the 1C and 2C resource volumes are robust and that the 1C volume contained within the Location declared within the 100% Buru-owned EP 428 is well suited to fully underpin the planned commercialisation of the Rafael resource via a competitive local, small scale Liquified Natural Gas (LNG) and condensate project.
The pre-Front End Engineering Design for the development was delivered to Buru by GHD Pty Ltd during the year, with the study delivering an added level of design maturity, and associated cost and schedule information to underpin confidence in the commercialisation pathway for the Rafael Gas Project.
This project is designed to meet the forecast energy needs of the Kimberley, significantly reducing the reliance of imported LNG and diesel fuel to support electricity generation and the broader energy needs of the region.
Final Investment Decision for the Rafael Gas Project is currently planned for late 2025 with production scheduled to commence in 2H 2027. This opportunity will enable Buru to establish itself as the sole future gas and liquids energy producer in the Kimberley Region. This timeline to commence production aligns with the Western Australian State Government’s plans to overhaul the Kimberley energy system by 2028.
With the Rafael development concept selection now complete, Buru’s near-term priority is to secure commercial agreements for the Rafael Gas Project development and gas and liquids offtake.
Discussions with several parties are underway, including potential customers, LNG facility builders, owners and operators. The discussions include funding facilities and customers seeking supply from late 2027/ early 2028.
Rafael Shallow Prospect (EP 428 – Buru 75%)
On 24 April 2024 Buru announced that following the interpretation of the Rafael 3D seismic survey data, it had identified a high potential, relatively shallow oil prospect in EP 428, partially overlying the Rafael 1 gas and condensate accumulation.
On 5 August 2024 Buru announced it had entered into a Farm-in Agreement (Rafael Shallow FIA) with Sabre Energy Pty Ltd (Sabre) for the drilling of the Rafael Shallow 1 exploration well in EP 428 in Western Australia’s onshore Canning Basin. The transaction involved Sabre carrying Buru for $6 million of the costs associated with the drilling and testing of the Rafael Shallow exploration well to earn a 50% interest in a commercial discovery and subsequent Production Licence, with Buru retaining a 50% interest and Operatorship.
Following lengthy discussions, Sabre failed to meet their financial obligations under the Rafael Shallow FIA. Therefore, on 25 September 2024 Buru and Sabre executed agreements to terminate the Rafael Shallow FIA. On 26 September 2024, Buru executed binding Term Sheets to secure alternative funding of $3 million for the Rafael Shallow 1 exploration well, with two entities associated with long-term Buru shareholders to collectively earn a total 25% interest in a commercial discovery and subsequent Production Licence.
On 26 September 2024, Buru executed a Rig Hire Agreement with Silver City Drilling for Rig 24, and on 9 October 2024, the Rafael Shallow 1 well was spudded.
On 23 October 2024, Buru announced that the Rafael Shallow 1 well was drilled safely, on schedule and on budget but did not encounter moveable hydrocarbons. The well was subsequently plugged and abandoned.
“The lack of exploration success at Rafael Shallow 1 does not impact the development plans for the Rafael Gas Project.”
